Socio-economic activity report reveals over 50 per cent of expenditure from NRS Dounreay to companies in Caithness and Sutherland

A review of socio-economic activity from 2023 to 2024 has revealed the significant contributions NRS Dounreay continues to make to the economy and communities of Caithness and north Sutherland.

The report, published by Nuclear Restoration Services (NRS), highlights major investments, employment figures, and funding for key community projects that have strengthened the region’s economic landscape.

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The review revealed that Dounreay’s total expenditure for the financial year was £202.4 million, with £113.5 million directed towards the supply chain – and nearly a third benefitting small and medium enterprises (SMEs), with 12 of the top 20 suppliers owned or resourced within the north Highlands.

Employment at the site remained strong, with 1354 staff employed as of June 2023, 96 per cent of whom live locally, along with approximately 700 supply chain workers at the site.

Workforce spending contributed an estimated £77.4 million Gross Value Added (GVA) per annum added to the local economy and £167.2 million across the UK.

Economic analysis highlighted that Dounreay has a GVA per employee of £55,900 per annum, with salaries as a whole representing around 15 per cent of total payroll in Caithness and Sutherland.

Dounreay’s commitment to community development was also underlined in the report, with a commitment of £754,404 in 2023/24 in funding to support various initiatives.

This total of Dounreay funded and Dounreay managed NDA funding, leveraged an additional £7.07m of private and public sector investment into Caithness and north Sutherland.

One of the largest investments was a £150,000 contribution towards the £1 million first phase of Wick Harbour’s entrance improvement works.

The redevelopment of Wick River Campsite received £80,000 towards a total project cost of £450,837, enhancing the site’s facilities to attract more visitors. The historic John O’Groats Mill redevelopment project, which aims to create a heritage attraction and community venue, secured £50,000 as part of a wider £5.3 million investment.

A further £75,000 was allocated to the £450,000 North Coast Visitor Centre project, which will house the NRS Dounreay heritage collection, enriching cultural offerings in the region.

To address skills shortages in the area, Dounreay partnered with the Nuclear Decommissioning Authority (NDA) to provide £100,000 in funding for the Caithness Business Fund’s FutureSkills Apprenticeship Grant Scheme.

This initiative allows eligible businesses to receive up to £24,500 over three years to support apprenticeships, ensuring a pipeline of skilled workers to sustain local industries.

Dounreay’s socio-economic efforts are further supported through strategic partnerships, including a £3 million NDA investment over three years in the Sutherland Spaceport and nearly £4 million committed to Nucleus – the Nuclear and Caithness Archives, opened in Wick to manage the UK nuclear industry’s records – which supports 68 local jobs.

Additionally, a funding package was allocated to the Focus North Partnership to drive economic development in the region.

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