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Meeting of the Parliament 06 October 2011

06 Oct 2011 · S4 · Meeting of the Parliament

Item of business

Housing

Johnstone, Alex Con North East Scotland Watch on SPTV

Thank you very much, Presiding Officer. In fact, the generosity that you have shown in this and previous debates indicates that the wise thing for us all to do is to use as much time as possible in case too much scope is left for the cabinet secretary when he winds up at the end of the debate. We know that he would use the time constructively but, if we ensure that his time is limited, perhaps we will all enjoy his speech a little more.

However, we are here to discuss housing. I welcome the opportunity that is provided by the Government’s debate to do that. Unfortunately, though, housing is an area in which the Government has left itself open to criticism. A look at the figures indicates that housing has been targeted for a significantly reduced budget in years to come.

Excluding the separate allocations for Edinburgh and Glasgow, this year’s housing figure of £268.5 million falls to £155 million next year and £133 million the following year, which represents a 40 per cent cut between this year and next.

Within the local government settlement, £250 million has been allocated over three years. That is an average of £83 million compared with the figure for 2011-12, which is £98 million. The £98 million this year was allocated to the councils in Edinburgh and Glasgow, but housing minister Keith Brown says that he wants to talk to the Convention of Scottish Local Authorities and the Association of Local Authority Chief Housing Officers about how the £250 million can be distributed across Scotland.

The picture is unclear. The total housing supply funding figure of £238 million for 2012-13—assuming £83 million within the local government settlement—means that, overall, housing supply funding has been cut by one third on the £368 million figure for this year.

Jim Strang, chair of the Chartered Institute of Housing Scotland, said:

“The Scottish Government says that the funding will enable it to meet its 6,000 homes per year target. We can only think that this confidence is based on the premise that current grant rates are, in the Scottish Government’s view, sustainable in the long term or can even be cut further.”

The Scottish Government has said that its target supply figures will now be based on completions, not approvals. In the long term that makes more sense, as a completed home is a tangible result. However, I cannot help thinking—and we have heard it already this morning—that that will allow the Scottish Government to turn its ailing 2011-12 figure into a roaring success as it will mean thousands of homes approved under the previous funding regime can be claimed as being within the Government’s targets.

The Scottish Government claims that the shortage of affordable housing can be addressed only by innovative and creative measures. That is true, in the current circumstances, but the fact is that the Government has failed to come up with anything innovative and creative beyond the clunking national housing trust, which continues to fall well below its targets, and the innovation and investment fund, which effectively makes registered social landlords do the Government’s job for it.

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Meeting of the Parliament 06 October 2011

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