Inverness and Highland City-Region Deal reports £412.98m of investment delivered

The Inverness and Highland City-Region Deal has delivered £412.98m of public and private investment across the Highlands, The Highland Council said on 9 November, citing the programme's 2025/26 Annual Report.

The council said the year's highlights included the start of landside construction for the Corran Ferry crossing, the completion of 234 affordable homes and the opening of The Inverness Castle Experience in February 2026.

The Deal is a joint initiative between the UK and Scottish governments, The Highland Council and other partners. The UK Government published the Deal document on 24 March 2016, describing a funding package of up to £315m into the regional economy.

Cllr Ken Gowans, Chair of the Council's Economy and Infrastructure Committee, said: "The success of the Inverness and Highland City-Region Deal is testament to the strength of partnership working across the public and private sectors in the Highlands."

Housing

The council said the 234 affordable homes completed across the Highlands in 2025/26 with Deal funding are now occupied, and work continues on a further 109 homes at sites progressing through development.

Over the lifetime of the programme, the Deal has provided funding for 834 affordable homes, according to the council. The Deal's stated targets, as set out on the council's City-Region Deal page, include 6,000 new homes, of which 1,800 are affordable, alongside more than 1,000 direct jobs and 2,200 construction jobs.

Corran Ferry

Construction of the Corran Ferry landside works, including new slipways, an overnight berth and a breakwater, began in January 2026. The council's annual report release gives a completion date of summer 2027.

The Highland Council appointed Charles Brand Group Limited as principal contractor for the landside infrastructure, with the works programmed over 18 months. The scope covers a new slipway and overnight berthing pier at Ardgour and, on the Nether Lochaber side, a new slipway, breakwater, marshalling area, parking, a cycle path and improved public facilities.

The council is procuring a new electric vessel for the crossing in partnership with Caledonian Maritime Assets Ltd (CMAL). It said in October 2026 that the vessel contract is expected to be awarded in March 2027, with the replacement ferry anticipated to enter service in early 2029 and charging infrastructure commissioned by September 2028. The MV Corran will continue as a relief vessel.

Inverness Castle

The Inverness Castle Experience was officially opened on Monday 9 February 2026 by Kate Forbes, Deputy First Minister of Scotland, and Kirsty McNeill, UK Government Minister for Scotland. The council said the attraction has welcomed more than 107,000 paying visitors since opening.

At the opening, the council said the attraction was expected to draw about 450,000 visitors a year, including 200,000 to the paid attraction, and to generate an estimated £13.9m in net annual expenditure. It directly supports more than 100 jobs and is operated by High Life Highland on behalf of The Highland Council.

Innovation and skills

The Northern Innovation Hub reached full completion in 2025/26, having supported nearly 3,000 businesses and social enterprises over its life. In the year, the council said, it supported 10 new products, processes or services, three further start-ups and 24 SMEs undertaking innovation activity.

The Science Skills Academy supported more than 6,100 pupils to access STEM learning through Newton Rooms in 2025/26 and developed a Green Skills module for secondary-aged pupils. The Science Skills Academy was one of the first three business cases approved when the Deal was signed, alongside the UHI School of Health, Social Care and Life Sciences and land remediation in Inverness, according to the Scottish Government.

Extended timescales

The Deal has been extended to March 2029 to allow completion of current projects, including the Longman Land Remediation and the Corran Ferry Infrastructure Improvements, the council said.

Funding timescales for the A9/A96 Inshes to Smithton improvement works and the Corran Ferry new electric vessel have been extended further, to March 2032, because of the complexity and scale of the projects.

What happens next

The council has agreed to begin formal discussions with the Scottish and UK governments on a new Growth Deal for the Highlands. Officers will develop an initial strategic proposition for members to consider. The council's Highland Housing Challenge separately aims to deliver 25,000 additional homes across Highland by 2035.

Cllr Gowans said the Deal "provides a strong foundation as we continue discussions on a future Growth Deal for the Highlands."

The council's Economy and Infrastructure Committee will be asked to note the 2025/26 Annual Report when it meets on Thursday 12 November 2026.