Scottish Government Signals Support for Future Island Tunnel Projects

The Scottish Government has reaffirmed its recognition of the role fixed transport links can play in strengthening island communities, as momentum builds behind ambitious proposals to replace ferry routes with tunnels across parts of Shetland.

The comments follow a decision by Shetland Islands Council to continue developing long-term plans for permanent transport links connecting Yell and Unst, while also maintaining aspirations for future tunnels serving Bressay and Whalsay.

Collectively, the four proposed schemes are estimated to require investment of around £1.5 billion, making them among the most ambitious transport infrastructure projects ever considered for Scotland's island network.

Long-term vision for island connectivity

Although the projects remain in the early stages of development, council leaders believe permanent fixed links could fundamentally improve how residents, businesses and public services move between the islands.

Replacing weather-dependent ferry crossings with road tunnels has the potential to deliver more reliable transport connections, strengthen economic resilience and improve access to employment, education and healthcare.

The proposals now move into a phase focused on establishing how projects of this scale could realistically be financed.

Funding options under consideration

No funding package has yet been agreed, but a range of potential financing mechanisms is being explored.

These include direct government capital investment, borrowing arrangements and private sector finance, with discussions expected to continue between local and national government over the coming years.

The Scottish Government has indicated that any future investment decisions will form part of wider budget negotiations involving local authorities and the Convention of Scottish Local Authorities (COSLA).

Government acknowledges wider benefits

While stopping short of committing to construction funding, ministers have acknowledged the important role transport connectivity plays in supporting Scotland's island communities.

Through the National Islands Plan, the Government has pledged to work alongside councils to examine opportunities for fixed links and explore sustainable approaches to funding major infrastructure projects.

The latest statement suggests ministers remain open to considering permanent transport connections where there is a strong strategic and economic case.

Building on existing investment

The discussions follow continued financial support for Shetland's transport network.

After providing £10 million towards inter-island connectivity during 2025/26, the Scottish Government allocated a further £3 million in capital funding to Shetland Islands Council this year.

While those allocations are not directly linked to tunnel construction, they demonstrate continued investment in improving transport resilience across the islands.

A project measured in decades rather than years

Despite growing political support, significant work remains before any tunnel project could proceed.

Detailed business cases, environmental assessments, engineering design and funding agreements will all need to be completed before construction could begin.

For now, the proposals represent a long-term vision for transforming transport across Shetland—one that could eventually reduce reliance on ferry services while creating more resilient connections between some of Scotland's most remote communities.