Scilly could get a new ?17.5m combined ferry to replace the Scillonian III and freight vessel Gry Maritha.

Harbours in Penzance and St Mary’s could also see a ?24m revamp, Cornwall County Council has said.

The council made a decision to go ahead with the plans in principle on Wednesday, with a final decision expected in January.

The Authority hopes to raise ?14m from loans and the rest from Objective One funding. It will then lease the boat to the Isles of Scilly Steamship group.

The Department for Transport has also agreed to contribute funds to the project.