Isles of Scilly: Transport

David Reed Excerpts

Tuesday 17th March 2026 Commons Chamber

[Andrew George]

I am grateful to my hon. Friend, who leads me on to my next point. Although he says that we are all in the same boat—if you will pardon the pun, Madam Deputy Speaker—the fact is that we are not. Services in Scotland are very heavily subsidised, as I will explain. When we look for parity and comparability, the services offered for the Isles of Scilly and for Scottish islands are significantly different.

Of course, the Isles of Scilly have the additional challenge of being some 40 miles off the coast. I do not know how many miles the Isle of Wight is off the coast—is it 1.5, 2 or 3 miles? It is certainly a very short journey. In addition, because of the numbers of passengers going in that direction, the costs are obviously significantly less than for those on the Isles of Scilly.

The costs and prices for passenger transport, freight and indeed air transport for the Scottish islands are, in most cases, very heavily subsidised. I know that the UK Government are not responsible for the practices of the Scottish Government, but it was their responsibility prior to devolution, and indeed that is when the policy was established. The Minister may attempt to distance himself from something that is not the responsibility of the UK Government and hide behind that, but it was their responsibility originally, and that left a legacy that has given Scotland significant advantages.

There is no equivalent of the £3 bus fare for the Isles of Scilly—it is a £120 return, as we have just heard. There is no subsidised air travel, either. The entire economy depends very much on tourism, and tourism depends on travel. In those circumstances, we hope that the Isles of Scilly will be treated fairly.

There are very high freight costs, and the costs of getting food and other essential services to the islands are therefore very significant. My ask of the Minister is that he works with me, the council, transport providers and others to alleviate these pressures by finding an agreeable way to provide support to reduce these costs of living.

[David Reed (Exmouth and Exeter East) (Con)]

I appreciate the hon. Gentleman bringing this important debate to the Chamber. Exeter airport, which is one of the key transport nodes for the Isles of Scilly, is based in my constituency. My grandparents and great-grandparents on my dad’s side really enjoyed going down there on holiday, adding to that tourism economy. I have seen the price of travel to the Scilly Isles increase in recent years, which means fewer people are able to enjoy that. I would like to offer my support to the hon. Gentleman; if there is any way I can add in Exeter airport and work with him on some of these problems, I would be very happy to do so.

[Andrew George]

I am pleased that the hon. Member and his family have strong connections with the islands, but I caution him against describing them as the Scilly Isles—he will not be well received on the islands if he uses that particular nomenclature—but, certainly, if he continues to call them the Isles of Scilly, I am sure that he will be very well received. His offer of working with me and the islanders—the Scillonians—will also be well received, and I am very grateful to him for it.

Transport Scotland, an agency of the Scottish Government, subsidises most routes to islands in the Hebrides through a contract with Caledonian MacBrayne —CalMac—which is owned by the Scottish Government. The islands are also served by several other routes, some of which are subsidised by local authorities, and a handful are served without subsidy by private operators. The Scottish Government have supported the sector since the 1960s. They have been obliged to tender for services since the late 1990s, to comply with state aid regulations. That has altered the ownership structures of what remains a state owned and operated set of services.

Approximately 70% of CalMac’s revenues come from the Scottish Government. It is often said that for every pound paid by a ferry user, another £2 of public subsidy is required. By contrast, passenger services between the mainland and the Isles of Scilly have always been operated on a commercial basis, with the exception of during the covid pandemic, when, like all companies around the country, it was subsidised. Certainly, this was seen as a lifeline service by the Government.

The Isles of Scilly Steamship Group, the primary operator of the transport services to the Isles of Scilly, operates Scillonian III, which is now in its 49th year and will be replaced next year by the Scillonian IV. Indeed, it was purchased in the 1960s with a Government loan of £1 million during the period when Harold Wilson, who was a resident of St Mary’s, was Prime Minister. That did help the company purchase that vessel at that time. As the Minister will know, Harold Wilson is buried on St Mary’s, and his love and affection for the islands are well known. The ISSG operates that important lifeline link to the Isles of Scilly, but only during the summer months; it cannot operate during the winter because of the inclement conditions.

The ISSG offers concessionary fares for islanders through its “travel club”, as it calls it, which is a way of building and rewarding loyalty. However, it is seen by others that somehow this service is being subsidised by visitors to the islands. We do not want to get into a situation where we discourage visitors to the islands. However, it is worth pointing out—I checked this online today—that if we were to book a return fare on the ferry from Penzance to the Isles of Scilly, which is a three-hour journey, more or less, on a 40 mile trip, that would cost around £220. If we were to catch a ferry from Mallaig to Canna, approximately 30 miles in Scotland, that journey would cost £14.20. If we were to go from Kennacraig to Port Askaig—Isla—the two-hour journey would cost £18. The comparison is something on which we need to reflect.

It is worth saying that most ferry services in England, such as the ferries to the Isle of Wight, are operated by private operators, just as they are on the Isles of Scilly, and receive no central Government grant or funding. There are other examples of publicly owned ferries in the UK, and between the UK and the Isle of Man. On Merseyside, Mersey Ferries is effectively owned by the local transport authority, Liverpool City Region combined authority. In 2018, the Government of the Isle of Man brought into public ownership the Isle of Man Steam Packet Company, which operates ferries between the Isle of Man, the UK and Ireland. The Isle of Man Government do not control the day-to-day running of the company’s ferries, but they do own a 100% stake in its parent company.

I have referred already to inter-island transport and the costs and made comparisons with the subsidies available to local authorities and passengers elsewhere. As I say, there is not an equivalent to the £3 bus fare, nor is there free transport for older people. This means that islanders have a significantly increased cost of living.

While the Isles of Scilly council is responsible for transport and the economic strategy as a member of the Isles of Scilly transport board, which also includes representatives of the transport providers and business groups, the council’s strategic economic plan—“Island Futures”—includes a core aim to

“improve transport connectivity across the islands and to the mainland”.

In relation to connectivity, the strategy aims to secure

“resilient, year-round transport services to Cornwall and further afield”.

It recognises that improving transport connectivity is a “major challenge”—that is an understatement—and aims to make the islands more self-sufficient and resilient to future changes, including in relation to transport connectivity and between the islands.

There are other matters that complicate and worsen the situation for the Isles of Scilly. Its council is responsible for running the airport. It is a very small council, with a budget of £8.8 million, but it has to run a fully regulated airport, which is a lifeline service. I understand that its landing fees are due to increase 18% this year simply to meet the pure costs of the regulatory challenges. The transport operators are complaining about this, and understandably so—it is a great expense.

When I was last in Parliament, the European geostationary navigation overlay service system—Europe’s satellite-based augmentation system that ensures safe use of the services—was in operation. One of the many so-called Brexit benefits is that we can no longer use the European safe satellite system. It has been withdrawn, so the services have become less resilient and more weather-dependent than they were just 10 years ago. So even where a system is in operation, it is struggling.

The Minister will also know that the Isles of Scilly Steamship Company has expressed concern about the expansion of the emissions trading scheme. While we want to have cleaner atmospheres, the question is about the proportionate impact this scheme is likely to have. Initially, it will apply to vessels with a gross tonnage of over 5,000 from 1 June this year, and then to vessels with a gross tonnage of over 400 from 2028, which will add cost to the service. It would be helpful if the Minister talked to the steamship company, but I know that he is addressing this issue, which is very helpful—I do appreciate that.

Help has been provided. As part of the previous Government’s levelling-up programme, £48.4 million was offered to create a new vessel. Indeed, when I was elected other subsidies were available, but unfortunately it was not always possible to get the operator of the service—the steamship company—to agree to use those funds in the way that they were offered.

I know that the Minister has responded, in correspondence and in meetings, about how the English national concessionary travel scheme is supposed to operate, but we do not have buses between the off-islands and the main island, so it is absurd to attempt to apply mainland, landlocked transport policies to a maritime environment such as the Isles of Scilly. I urge him to look at that again. He goes on to tell me that the local authority can provide concessions, but the council of the Isles of Scilly is struggling to survive, let alone being able to provide additional concessions for its transport services. I hope that the Minister will look again at these matters.

The recommended policies that we ask the Minister to consider are: extending the powers under the Concessionary Bus Travel Act 2007 to classify inter-island boating as eligible public passenger transport; beginning a pilot scheme with the Isles of Scilly, perhaps during next winter; and seeing how we get on and evaluate it after a 12-month period. We could create an islands transport mechanism, equivalent to the Scottish air discount scheme or ferry support services, and establish a statutory footing for island-appropriate subsidy powers. We could provide emissions trading scheme transitional relief for lifeline routes and describe the service to the Isles of Scilly as such a route to prevent fare spikes when the ETS comes into force. We could also support harbour electrification for Penzance and St Mary’s.

I am grateful to the Minister for responding to the issues that I have raised previously and I hope that he will take on board the issues that I have raised today. I am delighted to say that the chair of the council of the Isles of Scilly, Councillor Robert Francis, is in the Public Gallery watching this debate, and he will be as keen as I am to continue the conversation with the Minister after the debate, as it is desperately important that we address the very serious transport challenges that Scillonians face.