McArthur highlights challenges facing SME building firms in islands

Orkney’s MSP, Liam McArthur, has today called on the Scottish Government to provide better tailored support for SME building firms in rural and island communities.

Speaking during Social Justice Portfolio Questions, Mr McArthur called on the Cabinet Secretary for Housing to look at what better tailored support might be provided for SME building firms taking forward developments in rural and island communities.

A 2024 Homes for Scotland report found that 100% of property sales in Orkney in recent years have been SME built, but firms report a number of barriers to delivery, including restrictive planning rules, higher development costs and a lack of sufficient funding to take forward key projects.

Earlier this year, the Cabinet Secretary accepted an invitation from Mr McArthur to visit Orkney to meet with local housing developers and discuss the challenges they face.  

Commenting after the exchange, Mr McArthur said:  

“SME building firms are absolutely vital for local housing development here in Orkney, where all recent house sales have been delivered by small builders.

“However, SMEs involved in developing rural and island housing face several major barriers to delivery, with the increased financial risk of higher development costs and a one size fits all approach to planning rules which simply doesn’t work in island settings.

“If these firms are to succeed in delivering the housing that we desperately need, and which the strength of our local workforce is reliant upon, the Scottish Government must commit to provide better tailored support for SMEs that reflects the needs of the island communities they are based in.

“I look forward to the Cabinet Secretary’s visit to Orkney in the near future, where she will have the opportunity to discuss these matters with local development projects and firms.”