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Did the government forget to 'island-proof' the ferry fund?

Did the government forget to 'island-proof' the ferry fund?

The compensation pot, which opened for applications on Tuesday, offers grants of between £3,000 and £35,000 to firms on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran.
Mull, Iona, Coll, Tiree, Islay and others who've seen serious disruption get nothing.
To qualify, the islands had to have suffered from over 15% ferry service cancellations across three seasons — far above the 7% CalMac network average.
That's left businesses — and campaigners like Joe Reade from the Mull and Iona Ferry Committee — fuming.
Although they don't reach the threshold set out by the government, he says his community is still experiencing a 22% cut in ferry capacity this summer. They've already lost around 7,000 passenger visits — a clear blow to a local economy reliant on tourism.
But because these are classed as capacity cuts rather than cancellations, they're ignored by the fund's formula.
As Reade puts it, it's 'astonishing and bemusing' that ministers have chosen such a narrow and 'arbitrary' way to measure hardship.
It also, he believes, breaks the law.
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Passed with cross-party support, the Islands (Scotland) Act 2018 was meant to ensure that the specific needs of Scotland's island communities were not just recognised, but respected in law.
It places a clear duty on public bodies — including Scottish ministers — to 'have regard to island communities' when exercising their functions. In other words: island-proof your policy.
Part 3 of the Act says the government must carry out an Island Communities Impact Assessment (ICIA) when a policy is 'likely to have an effect on an island community which is significantly different from its effect on other communities (including other island communities).'
The ferry support fund clearly triggers that requirement. It's a policy about islands, aimed specifically at businesses on islands, that offers money to some and excludes others.
Reade says there's a wider issue here around the Islands Act.
'It is routinely ignored by governments at all levels, or just paid lip-service,' he tells me.
Herald readers will be familiar with my colleague James McEnaney's reporting on the row over the new school on Mull.
A petition for a Judicial Review has been lodged with the Court of Session in Edinburgh in an attempt to reverse Argyll and Bute Council's decision to build the school in Tobermory — a move that means kids from the south of Mull remain excluded from the only high school on their island.
'The ICIA the council were supposed to undertake was done far too late and without proper consultation,' Reade says.
The Learning Estate Investment Programme (LEIP), the central government funding scheme paying for the school, has also not been assessed against the Act. Technically, that's because it pre-dates the law — although it was announced a year after the Act passed.
'Scottish Government certainly had a moral obligation to 'island-proof' the LEIP programme,' Reade argues. 'But they did not.'
There's scant information about the IBRF. The first many island businesses heard about it was when journalists got in touch for comment on the Scottish Government's press release.
The Islands Act was supposed to be ground-breaking and promised meaningful change — but for many islanders, that promise remains unfulfilled.
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Welsh independence will unleash 'full potential' as nationalists serious contenders to form next government
Welsh independence will unleash 'full potential' as nationalists serious contenders to form next government

Sky News

timean hour ago

  • Sky News

Welsh independence will unleash 'full potential' as nationalists serious contenders to form next government

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First-time buyer demand in cities soars - with one trendy Scottish city seeing a HUGE spike
First-time buyer demand in cities soars - with one trendy Scottish city seeing a HUGE spike

Daily Mail​

time4 hours ago

  • Daily Mail​

First-time buyer demand in cities soars - with one trendy Scottish city seeing a HUGE spike

First-time buyers have been flocking to cities over the last decade, new data shows. Across Britain's 50 largest cities, demand among first-time buyers has risen by 16 per cent since 2015, Rightmove said. This was at the expense of coastal towns, where the number of people looking to get on the property ladder flatlined thanks to soaring prices and poor connections. However, Dundee in Scotland, a city with a coastal outlook, managed to buck the latter trend and saw the biggest spike in demand from first-time buyers in the last decade. Rightmove's analysis compared demand from first-time buyers between January to May 2025 against the same period in 2015. Its figures suggest first-time buyer demand in Dundee surged by 176 per cent in the last decade. Dundee is Scotland's fourth largest city, and has been undergoing a rejuvenation in recent years thanks in part to its thriving arts, design and food scenes. It is home to the University of Dundee, the Law conservation site, the V&A Dundee and attractions like Broughty Castle. The city has various shopping centres and a myriad of restaurants and pubs. Kyle Anderson, managing director of McIntyre Properties in Dundee, told This is Money: 'This is a trend we have seen in recent years, given the level of investment and development in the city it has become a desirable place to live in many areas, but also remains relatively affordable compared to the rest of the country. 'There are different types of first time buyers as in any location, but many opt for the West End, as there are many traditional flats in this area which are close to the city centre. Others may go for some of the readily available former local authority houses a little further from the city centre as they are well-sized for couples, small families at a very affordable price point.' While Dundee took the top spot for first-time buyer growth, Edinburgh saw the second largest rise in demand in the period, climbing 91 per cent. Doncaster came in third place, with a 74 per cent increase in demand from first-time purchasers. Liverpool and Plymouth took fourth and fifth place, with demand from first-time buyers rising over 70 per cent in both cities. Glasgow, Preston, Winchester, Newcastle upon Tyne and Newport also performed strongly. Only London failed to follow the city trend. Overall first-time buyer demand in London fell 7 per cent versus ten years ago, with higher asking prices a likely contributor., Rightmove said. While most cities proved popular, on average, the number of future first-time buyers looking to move to popular coastal areas was 'completely flat' compared with ten years ago. For many first-time buyers, proximity to work and public transport is key, as is affordability. Colleen Babcock, Rightmove's property expert, said: 'We've seen a number of changes to the property market over the last ten years. 'Perhaps most notably is during the pandemic, when many people temporarily left cities and looked to the coast or countryside.' She added: 'Comparing where we are now versus a decade ago, it looks like there's even more appeal from potential first-time buyers to live in cities, though the data does show that it can vary quite widely from city to city, and it will also depend how first-time buyer friendly a particular location is in terms of the type of homes that are available for sale. 'Coastal areas haven't seen the same level of growth as cities from this type of buyer, and again it may be partly due to the availability of suitable homes in these areas for first-time buyers as well as affordability.' Mary Lou-Press, president of NAEA Propertymark, said: 'Coastal locations can offer a slower and more picturesque quality of life, compared to the vibrant fast-paced atmosphere of many cities. 'The latter can be appealing for younger people due to greater economic opportunities, cultural attractions, and diverse amenities. 'It's likely we will continue to see a shift in first time buyer activity within city centres as London remains increasingly desirable yet unaffordable for many people stepping onto the property ladder for the first time. 'This is likely pushing many to enter more affordable cities and it's unsurprising that Scottish cities are placed firmly at the top, as these can offer a blend of career opportunities, landmarks, and access to green spaces, all at a lower cost than many other major UK cities.' Four homes for sale in popular cities 1. Two-bed house, Dundee, offers over £150,000 This two-bedroom semi-detached house in Dundee is on sale via Remax Real Estate Centre for offers over £150,000. The property is being sold with extension plans which have already been approved by the local council. The property is spacious and light throughout and has a handy attic space accessed via stairs. The house has a large back garden with a decking area. 2. Two-bed flat, Edinburgh, offers over £200,000 This two-bedroom flat in Edinburgh is on sale via Yopa for offers over £200,000. The third-floor flat is in a traditional tenement building with a secure entry system. The freehold flat spans 622 and is in an excellent location close to the city centre, making it ideal for first-time buyers. 3. Two-bed house, Liverpool, offers around £159,150 This well-presented two-bedroom semi-detached house in Liverpool is on sale via Purplebricks for £159,150. The house would suit first-time purchasers or those with a growing family. The immaculate property spans around 792 sq. ft. and has a spacious front-facing living room. The ground floor also has a conservatory and utility room. The property has paved low-maintenance gardens at both the front and back. This is a house which has been well-loved and looked after by its owner. No stress: The Liverpool house has a low-maintenance garden to the rear and front 4. Two-bed house, Doncaster, offers in region of £155,000 This two-bedroom semi-detached house in Doncaster is on sale via Whitegates for offers in the region of £155,000. The house, spanning around 807 sq ft, is located in a popular residential area and benefits from off-street parking. The property has a spacious living room, modern kitchen and a generous garden perfect for relaxing or entertaining in. Ready to go: The kitchen in the Doncaster property is pristine and ready to use Restful: The property in Doncaster spans more than 800 sq ft How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.

Scotland's economic growth 'weaker' than rest of UK as business 'falters' from Donald Trump tariffs
Scotland's economic growth 'weaker' than rest of UK as business 'falters' from Donald Trump tariffs

Scotsman

time4 hours ago

  • Scotsman

Scotland's economic growth 'weaker' than rest of UK as business 'falters' from Donald Trump tariffs

Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... A slowdown in growth in Scotland's economy has been blamed on 'higher global uncertainty', with experts branding the recovery from the Covid pandemic as 'weaker' than the rest of the UK and 'particularly' linked to Donald Trump's trade tariffs. The Fraser of Allander Institute (FAI) has downgraded their forecasts for growth in Scotland, as Deputy First Minister Kate Forbes demanded 'decisive action' from the UK government to counter business uncertainty. Advertisement Hide Ad Advertisement Hide Ad It comes as First Minister John Swinney, writing exclusively for The Scotsman, said Labour could have avoided the "fiscal nightmare' being wrestled with by Sir Keir Starmer's UK government if they 'had the courage to do what the SNP have done, and ask higher earners to pay more tax'. Buchanan Street in Glasgow's city centre. The Fraser of Allander Institute has said Scotland's economy has experienced a 'weaker recovery' from Covid compared to the rest of the UK. Picture: John Linton/PA Wire Economics experts at the Strathclyde University-based think tank FAI highlighted a recent rise in inflation this year as having 'played a role' as the economy 'faltered'. Speaking as its latest quarterly economic commentary was published, institute director Professor Mairi Spowage said: 'After a strong start to the year, the Scottish economy has faltered in March and April and is essentially the same size in real terms as it was six months ago. 'Unfortunately, the wider business environment and global events are still taking a toll on businesses and consumers, which is having a dampening effect on spending and business investment.' Advertisement Hide Ad Advertisement Hide Ad The economic assessment comes after Mr Trump's decision to introduce a 10 per cent levy on most UK goods, including Scottish whisky and salmon, came into affect from April. The FAI now expects economic growth of 0.8 per cent in 2025 and 1 per cent in 2026, which is a slight downgrade from its April forecasts of 0.9 per cent and 1.1 per cent. The think-tank noted Scottish real GDP grew 0.4 per cent in the first quarter of 2025, compared to 0.7 per cent in the UK as a whole. The think-tank said: 'A pattern of lower growth in Scotland has persisted, leading to a weaker recovery from the pandemic than the UK generally.' Advertisement Hide Ad Advertisement Hide Ad Looking at the latest data, it found Scotland's economic growth had 'remained slow', with rises in the first months of this year having been 'partially offset' by falls in March and April. The report said: 'The slowdown in growth this year is largely due to higher global uncertainty, particularly from the announcement of tariffs in the US and elsewhere. 'With the CPI [Consumer Prices Index] rate at 3.4 per cent in May 2025 after staying below 3 per cent throughout 2024, an uptick in inflation has also played a role.' The think-tank said its latest forecasts 'reflect greater uncertainty and difficult economic circumstances'. The body also noted that businesses had reported a slowdown of activity in the first quarter of this year compared to the same period last year. Advertisement Hide Ad Advertisement Hide Ad The report said this 'decline in activity may reflect the impact of increases to employer national insurance contributions as well as uncertain conditions, particularly from trade and tariff decisions taken by the US government'. It said the 'difficult conditions for business have been echoed in the labour market', with the think tank noting pay growth has been 'slow' and the number of employees has fallen 0.9 per cent from last year. It also said there was 'some indication that the proportion of people living beyond their means in Scotland may have increased compared to this time last year'. Ms Forbes said: 'It is clearer than ever that Scotland's economy is being impacted by challenging global trading conditions and uncertainty – conditions mirrored across the rest of the UK. Advertisement Hide Ad Advertisement Hide Ad 'We are taking ambitious steps to grow the economy by pursuing new investment, building export potential and driving and capitalising on the Scottish innovation at the forefront of many key global industries. 'But we are doing all of this without the full economic powers needed to fully address the issues facing Scottish businesses. We need decisive action from the UK government to counter the damaging economic impacts of Brexit and business uncertainty. 'This includes reversing its decision to increase employers' national insurance contributions which, as the Scottish Chambers of Commerce has highlighted, is severely damaging business confidence, investment, growth and jobs.' Scottish Conservative shadow finance secretary Craig Hoy said: 'While there's no question external factors are impacting Scotland's economy, it's clear anti-business SNP policies are also stifling growth. Advertisement Hide Ad Advertisement Hide Ad 'The Nationalists' failure to fully pass on the rates relief available to businesses south of the Border, coupled with them making Scotland the highest taxed part of the UK, explains why the growth rate here is even lower than the anaemic rate Keir Starmer is presiding over.

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