THE UK Government is set to pay for a new ferry for the Fair Isle in the latest round of Levelling Up funding.
Nearly £27 million has been guaranteed for the new roll-on, roll-off lifeline vessel, which was warmly welcomed by the leader of Shetland Council who said it would have a tangible impact on the island's ability to "sustain itself and its people."
"It is no exaggeration to say that this funding from the UK Government has saved Fair Isle as an inhabited island," Emma Macdonald said.
"There would have been no other way for us to sustainably fund such a project. This is a truly great day for Fair Isle, and for Shetland, and we are grateful for the honest, open and productive dialogue we have had both with the Scotland Office and the Department for Levelling Up, Housing and Communities throughout the process."
The new boat will replace the 40-year-old Good Shepherd IV, which has around five years of life left.
Orkney and Shetland MP Alistair Carmichael also welcomed the news.
He said: “After some hard graft on the part of the council and local campaigners in bidding for funding it is enormously gratifying to see Fair Isle secure this investment for its new ferry,” he said.
“Well done to the officials who put the bid together and those in the community who have kept up the pressure.
“I have been working with everyone concerned for some time and I am delighted to see their work come to fruition.”
Other projects include £20m to help turn the Arbuthnot House in Peterhead into a museum and library, £9m for the demolition and regeneration of two failing shopping centres in Cumbernauld, and £17.7m to turn redundant spaces and buildings into cultural and leisure facilities in Dumfries and Galloway.
The announcement was made on Wednesday, with Prime Minister Rishi Sunak saying the Government aims to “build a future of optimism and pride in people’s lives”.
He said: “Through greater investment in local areas, we can grow the economy, create good jobs and spread opportunity everywhere.
“That’s why we are backing a number of projects with new transformational funding to level up local communities in Scotland.
“By reaching even more parts of the country than before, we will build a future of optimism and pride in people’s lives and the places they call home.”
Levelling Up Secretary Michael Gove said the announcement marked the Government “firing the starting gun” on projects across the UK, with more than 100 others announced.
Scottish Secretary Alister Jack said it was “fantastic to see real momentum gathering as we level up across Scotland”.
He added: “We must and will continue to invest in initiatives that will make a difference to communities and help grow our economy.”
The fund has also allocated £19.4m to demolish the A78 dual carriageway to help "transform Greenock town centre into a modern, vibrant hub based around public squares and green spaces."
There is also £14m for the transformation of a multi-storey car park into a sustainable transport hub in Dundee and £19.1m for the regeneration of the Forthside area of Stirling.
£11.3m will be spent on to freeing up land at a former coal-fired power station for green regeneration in East Lothian.
Not everyone who applied for funding has been successful. Labour accused the UK Government of presiding over a “Hunger Games-style contest where communities are pitted against one another”.
Lisa Nandy, the shadow levelling up secretary, said: “The Levelling Up Fund is in chaos, beset by delays and allegations of favouritism.
“It takes an extraordinary arrogance to expect us to be grateful for a partial refund on the money they have stripped out of our communities, which has decimated vital local services like childcare, buses and social care.
“It is time to end this Hunger Games-style contest where communities are pitted against one another and Whitehall ministers pick winners and losers.”
The Levelling Up fund has long been contentious with the Scottish Government, as it involves significant spending in devolved areas.
One of the central pillars of the agenda is the Shared Prosperity Fund which was set up by ministers in the UK Government to replace the European structural funds after Brexit.
The money from Brussels helped pay for the upgrading of roads in Harris and Skye, improving Dalmarnock Station in Glasgow for the Commonwealth Games, and funding the Falkirk Wheel canal boat lift.
When the UK left the EU, the Tories promised there would be no detriment.
They said money normally sent to Brussels by the UK would plug the gap.
The UK Government now bypasses ministers in Edinburgh, with Scottish local authorities and organisations applying straight to the Department for Levelling Up.
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