Highland Council proposes £14 million investment in bus expansion projects and renewable energy

3rd March 2025

As part of The Highland Council's proposed three-year Medium Term Financial Plan, £14 million has been allocated for expansion of bus company operations across the Highlands and shared investment in renewable energy opportunities.

£6 million is proposed to be allocated for an ‘Investment in Community Transport’ programme to build on the success of the Council’s in-house bus service by expanding its services to benefit more communities across the Highlands.

Chair of the Economy and Infrastructure Committee, Councillor Ken Gowans said: "A big part of our budget setting process is focussing on investing in our Highland transport services. In our My Future Highland Programme we gave a commitment to develop affordable and reliable public transport, as part of our work to develop sustainable communities.

“Since we established our In-House Bus Service it has grown from strength to strength. The Council spends around £25m on school and public transport throughout the region, with well over 300 separate contracts. The last tendering round saw an increase of £8m in one financial year, which led to the Council setting up an in-house bus team. The new £6m being proposed will enable us to expand our operations, increase the availability of service provision and facilitate improved cost effectiveness in the next round of bus contract tenders."

Last month Highland Council took over the operations of D&E Coaches who had operated a significant number of school contracts which will now be serviced in-house by the council.

Cllr Michael Green, Vice Chair of the Economy and Infrastructure Committee, said: “The public are set to benefit with greater control in the ways in which public and school transport is managed across the Highlands. This investment may well have positive impacts on older and younger age groups, and disabled people reliant on bus services, also those on lower incomes by supporting access to employment and training especially in rural areas through more accessible service provision.”

£8 million is proposed to be allocated for shared investment in renewable energy opportunities created by the Social Value Charter for Renewables. Agreed by the Council in June 2024, the Charter aims to maximise economic benefits from natural resources by setting out the community benefit expectations from developers wishing to invest in renewables in the Highlands and the way in which public, private and community partnerships can support and enable this contribution.

Leader of The Highland Council, Cllr Raymond Bremner, said: “If approved, an £8 million investment in renewable energy projects will reaffirm the Council’s vision as a centre for global renewable energy by capitalising on the wealth of resources and expanding renewables development in the Highlands. Significant investment opportunities in renewable energy schemes are being created through the Social Value Charter for Renewables, and we hope these investments could support a sustainable, long-term income stream for Highland Council. The Charter was developed as a way of unlocking economic opportunities for the Highlands and this investment would strengthen our commitment to community wealth building and enabling this wealth to remain within the local area.”

Convener of The Highland Council, Cllr Bill Lobban, said: “By capitalising on natural resources to deliver alternative energy solutions, the Council aims to create a more sustainable Highland environment for our communities. We must ensure that those living in the Highlands can benefit from potential income from renewables and the economic growth that these developments can support. The scale of renewable investment opportunities is considerable and a long-term revenue income for the Council and community partners could leave an important legacy that would have lasting benefits and positive impacts for local communities whilst addressing climate challenges.”