A £10million funding bonanza for the Highlands could help thousands of people into work over the next three years.
The huge cash injection was last night hailed as “fantastic news” and a major boost to efforts to tackle poverty in communities across the north.
The Scottish Government confirmed that the European Social Fund would give £5.17million to Highland Council for a range of employment schemes in the region.
And that investment will be matched pound-for-pound by the local authority, creating a £10milion pot.
A further £1.8million will be awarded to councils on Shetland, Orkney and the Western Isles.
The announcement was made just weeks after the Press and Journal exclusively revealed that £45million from the same EU funding pot – including £5million promised to the Highlands – had been suspended because of Scottish Government “irregularities”.
The cash commitment made yesterday – which is from a new funding round – will go towards projects such as training schemes, work placements and recruitment incentives.
The focus will be on young people and those who have been long-term unemployed through family, health or other circumstances.
Last night Highland Council said that at least 2,500 people could benefit by 2018.
Local authority leader Margaret Davidson said: “This is an important milestone towards providing a series of interventions that are aimed at tackling poverty in Highland, by enabling people to enter employment.
“Highland has a growing economy and it is important that we work together to ensure that as many people as possible are able to take up the opportunities that are available.”
It is the first money to be allocated to north communities from the European Social Fund (ESF) programme for 2014-2020.
The Press and Journal revealed last month that the European Commission (EC) had “suspended” £45million awarded to projects in Scotland as part of the previous 2007-2013 ESF spending round.
The unusual decision was taken because the EC said there were “irregularities” in the management of the cash allocations by the Scottish Government.
In the new funding announced yesterday, Highland Council is one of 16 local authorities to share a total £43million to help more Scots into work.
As well as £5.17million for the mainland local authority, Western Isles Council will get £770,000, Orkney Islands Council receives £533,500 and Shetland Islands Council gets £500,021.
Stewart Nicol, chairman of the Inverness Chamber of Commerce, welcomed the funding.
He said: “This is excellent news. It is a welcome addition into the mix.
“We have got good employment figures in Inverness and Highland but we are always aware of the challenges there are in terms of long-term unemployment and opportunities for young people in particular starting out on the jobs market.
“We need to be careful how we allocate this money in terms of making sure we target the skills we need for the successful and growing businesses we have across the Highlands.
“We have got to focus that resource and get the right training and the right apprenticeships whether that be life sciences or IT.
“This is fantastic news for the region.”
A spokesman for Western Isles Council said: “Overall the scheme will mean £1.5million being directed at helping people in the islands to overcome barriers to employment.
“Unemployment in the Western isles stands at around 5.3% and there is a clear need to support people into sustained employment.
“A variety of schemes aimed at supporting people into employment will be enabled by this funding.”
Fair Work Secretary Roseanna Cunningham said: “While the overall economic picture for Scotland remains generally very positive, particularly when compared to where we were at the peak of the recession, there remains work to be done.
“We must maintain momentum and ensure that every power at our disposal is used to grow the economy, increase employment, lower unemployment and remove barriers to the jobs market.
“We are committed to supporting people in their efforts to find viable, quality employment. To do that, we have to work hard with partners to remove the barriers people can face in trying to enter the labour market.”