Scots confirm £200m housing budget cut

The Scottish Parliament approved its government’s budget for 2010/11 this week, which sets total spend for housing and regeneration at £448 million.

This is a drop of £178.7 million from the £626.7 million allocated last year. The total affordable housing investment programme will be £351.9 million – a reduction from last year’s £525 million.

Scottish Federation of Housing Associations deputy chief executive Andrew Field said: ‘The SFHA is deeply disappointed that members of the Scottish Parliament have missed the chance to invest in enough homes to meet demand, and boost communities and jobs across Scotland.

‘Housing associations are now facing gaps opening up in their budgets for 2010/11 and beyond. There is a danger that affordable house building, which has been bridging some of the gap created by the slump in private developments, will fall significantly – at a time when demand for homes, especially affordable homes, is extremely high.’

The Scottish Government said the cut in the budget was due to funds being brought forward into 2009/10 because of the recession. It has still pledged to spend £1.65 billion on housing and regeneration over three years as set out in the 2007 spending review.

Scottish finance secretary John Swinney also talked about deploying £31 million to ‘meet housing need and accelerate and sustain investment in affordable housing across the country’ when unveiling the budget.

But Graeme Brown, director of housing charity Shelter Scotland, said this money was announced last summer.

‘The £31 million reported as additional money for housing is not new money, but is in fact part of a £54 million consequential package for housing announced last June,’ he said. ‘We urge all parties to push for a last minute deal for housing. Without more money for homes, Scotland’s housing crisis will deepen.’

Spend on regeneration programmes will go down from £42.6 million to £21.7 million.

The budget for the government’s central heating initiative and warm deal was kept relatively high, dropping just £5 million from £50.9 million last year. These are government initiatives to help poorer and more vulnerable households to heat and insulate their homes.

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