Why childcare is a regional development issue

8th October 2026

Morven Fancey, Head of housing, skills and population with Highland and Islands Enerprise looks a Childcare.

Investing in childcare is an investment in people, in communities and in the long-term success of the Highlands and Islands and the region’s contribution to Scotland’s economy.

When we talk about the future of the Highlands and Islands, our ambitions are clear. We want vibrant communities, thriving businesses, sustainable population growth and opportunities for people to build their lives here.

Achieving those ambitions depends on many things – infrastructure, jobs, housing, transport, connectivity, to name a few. But increasingly one issue is emerging as fundamental – childcare.

Over the past year, the Highlands and Islands Regional Economic Partnership (HIREP) has worked alongside communities, local authorities, businesses and national organisations to understand the childcare challenges facing our region. What has emerged is not simply a discussion about childcare provision. It’s a conversation about the future sustainability and growth of our rural and island communities.

The evidence is clear. Childcare is critical to workforce participation, business growth, population retention and community wellbeing. For many businesses across the Highlands and Islands, it’s become an important factor in workforce planning.

Ready access to childcare makes it easier for businesses to recruit, for entrepreneurs and parents to be more active in the workforce; and for communities to attract and retain families.

This is essential for local economies, community and social resilience and long-term growth.

The HIREP Childcare Evidence Report, published in 2025, highlighted the necessity of childcare provision in rural settings. And while the challenges are significant, what stands out equally strongly is the determination of communities to develop solutions.

The Childcare Roundtable hosted by the Scottish Government in Ullapool earlier this year brought together community representatives, local authorities, regulators and government officials. A powerful message emerged from those discussions: communities are not waiting for solutions to arrive. They’re already designing them.

From Barra and Uist to Tiree, Strontian, Sutherland, Skye and Shetland, communities are exploring new approaches that could strengthen childcare provision and improve outcomes for families. People who know their communities best are developing and testing ideas such as Rural Childcare Practitioners, flexible all-age childcare models, intergenerational services like the Single Care Model, shared staffing approaches and expanded childminding provision.

These examples demonstrate the wealth of creativity, expertise and community leadership that exists across our rural and island locations.

What communities consistently tell us is that they want to be empowered to continue this work. They want the opportunity to test new approaches, learn from one another, and build services that reflect local realities and local demand.

This is achievable with flexibility and partnership. The Scottish Government’s response to the Childcare Roundtable acknowledged that sustaining rural and island communities depends on improving access to childcare. It highlighted the importance of pursuing both immediate practical improvements and longer-term reforms.

This recognition is welcome because the need for action is increasingly urgent.

For many families, particularly those with children under two or requiring care outside school hours, childcare is a real challenge.

By contrast, effective provision delivers benefits far beyond individual families. It strengthens local labour markets. It supports businesses. It helps attract and retain working-age residents. It contributes to healthier and more resilient communities.

In short, it underpins many of the ambitions we collectively hold for the Highlands and Islands.

That’s why childcare should be viewed not only as a social policy issue, but as a strategic investment in regional development.

The encouraging news is that there is now a strong shared understanding of both the challenge and the opportunity. Communities, businesses, local authorities and national organisations are increasingly aligned in recognising the importance of childcare to the future prosperity of the region.

Most importantly, communities are leading the way.

The region has a long history of innovation, collaboration and finding local solutions to complex challenges. The work now underway on childcare is another example of that spirit in action. With continued partnership, support and a willingness to embrace new approaches, we have a significant opportunity to create childcare models that work for rural and island communities and, in doing so, help secure a stronger future for the region.

As Scotland’s economic and community development agency for the Highlands and Islands, we will continue making the case for investment in childcare. At the same time, we’re working with communities to help them turn their ideas into action in finding local solutions.

Childcare is much more than a service. It’s an investment in people, in communities and in the long-term success of the Highlands and Islands and the region’s contribution to Scotland’s economy. The commitment, creativity and determination already being shown here give every reason to be optimistic about what can be achieved together.

Source
https://www.hie.co.uk/news-and-blogs/blogs/2026/september/30/why-childcare-is-a-regional-development-issue/