Argyll and Bute Council and Comhairle nan Eilean Siar have received £20 million each in UK Government Levelling Up funding.
The two local authorities were included in an £80 million expansion of the government’s Levelling Up Partnerships programme.
Dundee and the Scottish Borders also benefitted from the funding, which comes after the Chancellor of the Exchequer Jeremy Hunt’s autumn statement on Wednesday.
The Levelling Up investment has been made available to deliver capital projects and will not fund day-to-day council services. It will need to be spent by 2025-26.
Argyll and Bute council leader councillor Robin Currie said: “This is very welcome news. Economic success for Argyll and Bute matters for all of us who live and work here and for the wider national economy, given the area’s contribution to key business sectors such as tourism, food and drink.
“To deliver local and national benefit, Argyll and Bute needs local and national support. There had been announcements about levelling up funding the day before the Autumn Statement and it’s fair to say I was extremely disappointed not to see Argyll and Bute included at that stage.”
Councillor Currie added: “We take every opportunity to promote Argyll and Bute’s case for investment and support. This included me raising the need for funding for Argyll and Bute as an island authority with Michael Gove, Secretary of State for Levelling Up, Housing and Communities, at the UK Islands Forum in October.
“We look forward to working with the UK Government in turning this significant investment into economic growth.”
The council has said work will begin on developing potential projects for delivery once further details about any criteria for using the investment is available.
Comhairle nan Eilean Siar also welcomed the announcement that £20 million in Levelling Up funding would be made available to the Western Isles.
The local authority in the Outer Hebrides anticipates possible investments would include supporting strategic projects already identified through the Islands Growth Deal.
Funding could also be used to support culture and heritage, Net Zero and fuel poverty innovation and to develop community infrastructure and support efforts to tackle depopulation.
Michael Gove said: “I was in Stornoway just last month to chair the UK Islands Forum and I know community leaders have strong ideas on how we can break down barriers to levelling up and improve opportunities for everyone living and working in the islands.
“I look forward to working directly with Comhairle nan Eilean Siar and the Scottish Government as we develop plans for the most impactful way to invest this £20m in the Western Isles.”
Comhairle leader councillor Paul Steele said: “At the UK Islands Forum, the comhairle called on all levels of government to prioritise island communities and make funding decisions that lead to real positive long-term outcomes.
“This investment of £20 million has the potential to make a real difference to the Outer Hebrides and I look forward to working with the UK and Scottish governments to build and deliver a suite of innovative projects that will help sustain and develop the economy of the Outer Hebrides.
“Across the Outer Hebrides, we have a suite of transformational economic development opportunities and am I hopeful the Levelling Up Partnership approach will be the catalyst to deliver on these opportunities and create new jobs, particularly in our more peripheral communities.”