Flights from Wick Airport - Uncertainty over future funding of Wick Aberdeen Service
20th February 2024
The Highland Council is currently unable to confirm whether funding will be available to support the Wick-Aberdeen Public Service Obligation (PSO) after 31st March 2024.
The funding for the PSO is currently provided on the basis of £1.3m annually, with £1m committed by the Scottish Government and £0.3m committed by The Highland Council. The Council's portion of the funding remains committed but there is uncertainty around the position of Scottish Government.
The Scottish Government's funding commitment to the PSO was made by the then Cabinet Secretary, Michael Matheson MSP, in February 2021, with funding starting as of 2022/23 to coincide with the start of PSO air services and running for two years initially, with a further two years (to 2025/26) subject to passenger growth in the first two years.
Since June 2023, the Council has been liaising with Transport Scotland officials as indication was given at that time of uncertainty around the continuation of funding. Following a productive meeting between the Council, stakeholders, and Transport Scotland in August 2023, a case for continued funding was produced by the Council and delivered in early October 2023. As of 19th February 2024, no decision has yet been made by Scottish Government.
As of January 2024, in its second year of operation the service has carried 9,252 passengers as compared to 8,835 in the first year of operation, and is showing an average growth year-to-date of 25%. By 31st March 2024, it is expected that the service will have carried over 11,000 passengers.
Leader of the Highland Council, Councillor Raymond Bremner, said: ""I wrote to the Cabinet Secretary on 12 February given the urgent necessity of requiring a decision in respect of the Scottish Government's continued support for the PSO operating from Wick. A lot of work went into making sure that the Scottish Government and Transport Scotland had all the necessary information on which to make a positive decision.
"Since that information was submitted, Wick Airport has continued to see increased passenger numbers and, in this current year, is the top performing airport in respect of increased passenger numbers year-on-year in the HIAL portfolio of airports. In October and December of last year, passenger numbers had increased by 25% and 22% YTD respectively. The Highland Council has done everything it possibly can including its commitment to the continuation of funding which, at the beginning of the PSO was known to be £1.2m. I sincerely hope that the Cabinet Secretary endorses the commitment evidenced to date by so many."
Related Businesses
Related Articles
Yesterday, Thursday 16 May, representatives from the tourism sector in the Highlands gathered in Inverness to take part in a Sustainable Tourism Strategy Workshop hosted by The Highland Council. The meeting, which was well attended with representatives from across Highland and different interests, follows the launch of the Council's public consultation on its Draft Sustainable Tourism Strategy.
First Minister John Swinney has confirmed the opening of a £1.5 million fund to support councils in removing the impact of school meal debt from families across the country. Mr Swinney said this commitment will help ensure no child is penalised for struggling to pay for school meals as a result of the cost of living crisis.
Todays Audit Scotland report Local government budgets 2024/25 reveals how dire council budgets are. This makes many more cuts in services likely in coming years.
At the Highland Council Economy and Infrastructure Committee. (Thursday 2 May 2024) Members had the opportunity to review the work the Council is doing to progress active travel and improve road safety before approving the next steps.
At the meeting of the Economy and Infrastructure Committee members had the opportunity to review the last two years of the Community Regeneration Funding Programme before agreeing changes to how the 2024/25 programme will be delivered. Committee Chair, Cllr Ken Gowans said: "Following a successful two years, it is a good time to review what has gone well and what can be done better so we can continue to build on success, and seamlessly move the focus onto how best to support the delivery of projects." "With 279 live projects and over £6million of committed funds still to be claimed, there is no doubt as to the value and impact of the programme's potential.
The Highland Council's In-House bus service pilot project was launched in January 2023. The success of its first year of operation in delivering savings and creating a valued and reliable service was highlighted at today’s Economy and Infrastructure Committee.
Members of Highland Council's Economy and Infrastructure Committee today (2 May 2024) approved the local authority's draft Ecology Strategy and Action Plan which will now move forward to an 12-week public consultation. The Ecology Strategy sets out an ambitious set of actions to tackle biodiversity loss and address the ecological emergency.
Economy and Infrastructure Committee members today (2 May 2024) agreed to direct £100K from the Council's share of the UK Shared Prosperity Fund (UKSPF) to fund a new staff training programme at the Inverness Castle Experience. The funding will enable the project team to provide specialist visitor attraction training to young people identified through partners at Developing the Young Workforce (DYW) and the University of the Highlands and Islands (UHI).
The Housing and Property Committee met on Wednesday 1 May 2024 and noted the Housing Service performance report 2023/24 that met the agreed priorities and associated initiatives in the Local Housing Strategy 2023-2028. The report highlighted a number of achievements in 2023/24 in increasing housing supply.
Kate Lackie, Malcolm MacLeod and Allan Gunn have been appointed as Assistant Chief Executives with The Highland Council. Convener of the Council, Cllr Bill Lobban said: "I am delighted to say that Kate Lackie, Malcolm MacLeod and Allan Gunn have been appointed as Assistant Chief Executives with The Highland Council.
