Meeting of the Parliament 26 April 2023
I will address that point later in my speech.
The 2023-24 budget shows a real-terms reduction of 4.5 per cent in Barnett formula funding since 2021-22. It is estimated that construction inflation, which is incredibly important, is between 15 and 20 per cent at the moment.
However, that will not stop us delivering affordable homes for people across communities. By doing so, we support a total investment package of around £18 billion and up to 15,000 jobs each year while making an important contribution to tackling child poverty and ending homelessness. We have made clear in our “Ending Homelessness Together” strategy that tackling homelessness and ending rough sleeping are an absolute priority.
I turn to homelessness funding that is provided through the local government settlement. We provide local authorities with £30.5 million annually for their work to prevent homelessness. Separately, we are providing a total of £100 million from our multiyear ending homelessness together fund to transform the homelessness system. Of that funding, £52.5 million supports Scotland’s transition to the rapid rehousing and housing first approaches.
Homeless households are entitled to support from their council and to temporary accommodation if they need it. That is an important safety net. I am aware, however, that far too many households spend too long in temporary accommodation, and I am determined to see that change. Local authorities work hard to meet the needs and preferences of homeless households, but I acknowledge that some areas, particularly our large cities, face significant challenges in sourcing settled homes of the right type and size.
I will be meeting the key local authorities—the City of Edinburgh Council and Glasgow City Council. I know that the previous cabinet secretary, Shona Robison, also met them, and I will continue that. Specifically, we will work on the nuances that are needed in those areas. Fourteen local authorities have had reductions in the use of temporary accommodation, and it is important that we learn lessons from the local authorities that have done well in that regard.
It is important that we remember that not all temporary accommodation is unsuitable and that local authorities try where possible to convert or flip temporary accommodation to permanent tenancies. That reduces transitions for homeless households, but it relies on the property being of the right size and type to meet the household’s needs. Our statistics show that, on average, households with children spend longer in temporary accommodation compared with those without children. That is because local authorities take a person-centred approach to finding the right permanent home for each family. Doing so allows families time to adjust in difficult periods in their lives and helps to minimise the potential disruption to their established support networks and links to their community.
I am grateful for the work of the temporary accommodation task and finish group. We are considering its recommendations and we will respond shortly.