Shetland set to back £1.5bn plan to connect islands with undersea tunnels
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Image source, Estunlar.foByJames Cook, Scotland Editor and John Johnston, BBC Scotland, Reporting fromLerwickPublished29 June 2026Updated 3 hours agoUndersea tunnels connecting some of the UK's most northerly islands could be in place within eight years, under plans expected to be approved on Tuesday.
A feasibility study for Shetland Islands Council proposes replacing ageing ferries with tunnels from Shetland's mainland to Yell and from Yell to Unst, describing them as "economically transformative". Two more tunnels, to the islands of Whalsay and Bressay, could follow under the plans, which are estimated to cost £1.5bn. Council leaders say the tunnels would be cheaper than building new ferries and replacing harbours.
The council is expected to explore funding from a mixture of private investment, public subsidy and borrowing, along with tolls covering maintenance costs. The undersea tunnel network that could transform Shetland's fortunes Published15 July 2025The council's transport chairperson, Moraig Lyall, said the report showed there were no technical barriers to building tunnels, which would be "cheaper in the long run" than ferries. The council currently runs ferry services to nine islands, carrying around 750,000 passengers each year on 12 vessels at a cost of £23m per year.
Costs have risen sharply in the past decade, with some routes struggling to meet demand for vehicle places.
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