Business leaders from across the region gathered in Inverness this week (11 March) for a wide-ranging discussion on the future of the Highland economy at the Chamber’s annual Business Breakfast with Derek Brown, Chief Executive of The Highland Council.
More than 70 guests attended the event at the Kingsmills Hotel, where Derek Brown outlined the Council’s priorities and the major challenges shaping the region’s future, including housing supply, workforce development, infrastructure constraints and the long-term sustainability of Highland communities.
This followed a Roundtable Dinner on Tuesday night (10 March) with a small number of business leaders covering a diverse range of sector experience, views and challenges that they are facing in their own industries.
These discussions highlighted the scale of opportunity facing the region, alongside the structural issues that must be addressed to unlock economic growth.
Housing identified as major constraint on growth
Housing supply emerged as one of the most significant challenges for the region. It was noted that the Highlands will require around 24,000 homes over the next decade, double previous projections, with an estimated £6 billion investment needed to meet demand.
Around 2,500 homes are currently empty across the Highlands, and approximately 300 potential development sites have already been identified. Discussions focused on the need to reduce construction costs, unlock land supply and explore new financing and ownership models to accelerate housing delivery.
Potential policy measures, including council tax charges on second homes, were also discussed as a way to help return properties to the housing market and increase availability for local residents.
Developing the future workforce
Workforce development was another central theme, with participants discussing how the Highlands can retain young people and create clear career pathways within the region.
A new £2 million Workforce North fund has been launched to support workforce development initiatives, supported by funding from Skills Development Scotland and additional council investment.
The conversation highlighted the importance of strengthening links between schools and employers and expanding initiatives such as Developing the Young Workforce to better connect education pathways with local job opportunities.
During the Q&A session, a powerful example was shared of an 18-year-old writing to ask how they could build a career while remaining in the Highlands – a question that inspired discussion around improving recruitment pathways and raising awareness of opportunities across key sectors.
Infrastructure and community sustainability
Participants also discussed the wider infrastructure challenges facing the region, including electricity grid capacity, transport infrastructure, digital connectivity and access to workforce housing.
The sustainability of Highland communities was a recurring theme, with speakers highlighting the need to ensure that economic growth supports thriving rural communities rather than drawing people away from them.
Investment in adult social care and services that support independent living was also discussed as part of the wider strategy to maintain strong and resilient communities across the Highlands.
Business role in regional development
A key message throughout the morning was the importance of collaboration between the public and private sectors.
Businesses were encouraged to play an active role not only as employers but also as community leaders – contributing to local development, supporting workforce initiatives and working in partnership with policymakers to address shared challenges.
Opportunities to attract new investment into the region were also highlighted, supported by the Invest Highland platform, alongside the role of major economic drivers such as tourism, regional events and initiatives like the North Coast 500.
Open discussion with business leaders
The event concluded with an interactive Q&A session chaired by Colin Marr, Chief Executive of Inverness Chamber of Commerce.
Questions from business leaders covered a range of issues including climate resilience, community engagement in economic development, housing availability for local workers and the need to communicate more clearly with communities about the benefits and opportunities associated with the energy transition.
There was also discussion around how organisations across the region can work together to ensure the Highlands remain an attractive place to live, work and invest.
Strengthening dialogue between business and civic leadership
Commenting after the event, Colin Marr said, “Today’s discussion demonstrated just how important it is for business leaders and public sector partners to come together to have open and constructive conversations about the challenges and opportunities facing the Highlands.
“This annual event provides our members with a valuable platform to share insights from the business community while giving them the opportunity to hear updates on key priority areas and holding the Council to account on progress being made to support sustainable economic growth.
“By continuing this dialogue and working collaboratively, we can help ensure the Highlands remains a place where businesses can thrive, communities can grow and young people can build their futures.”