Meeting of the Parliament 25 January 2023
I was surprised to see the Conservatives lodging the motion for this debate when it is their Government in Westminster that is directly impacting the Scottish Government’s ability to build new homes and tackle inequality. It is the capital spending decisions of the Tory UK Government that have led to such difficult choices in this year’s draft budget. The Scottish Government saw a 3.4 per cent real-terms reduction in its capital allocation for housing for 2023-24 as a result of the decisions that were taken in Westminster. Frustratingly, the falling capital grant allocation that Scotland has received, along with relentless inflation and cost pressures, has reduced the buying power of the Scottish Government’s ambitious housing investment.
In anticipation of difficult financial circumstances, a reduction has already been identified in the capital spending review. Without the full fiscal levers of an independent state, difficult decisions had to be made despite the challenge of UK Government austerity, Scotland’s five-year £3.5 billion commitment in the affordable housing supply programme remains. The Scottish Government’s £752 million investment for 2023-24 represents progress towards that £3.5 billion pledge. Additionally—and in the most challenging budget settlement since devolution—the Scottish Government is providing more than £13.2 billion to support councils and communities to meet their housing needs. Inflationary pressures and market conditions will continue to affect the capital investment programme, but the Scottish Government has been clear that that will be monitored.
A different approach to that of the Tory UK Government is possible. Unlike Westminster, the SNP-led Scottish Government is using all the levers at its disposal to maximise housing investment to the benefit of people and the economy. Our ministers have already set out how they are targeting public spending as effectively as possible. As affordable housing remains a key priority, the Scottish Government plans to mitigate the near £37 million reduction in its housing budget from Westminster with a £15 million in-year transfer from the heat and buildings strategy budget to help to fund zero-emissions heating systems with charitable bond donations, which will be directed towards investment in social rented homes, and with further financial transactions.
The Tory motion complains that this Government has not met its house-building targets. However, the Scottish Government remains fully committed to delivering 110,000 affordable homes by 2032. More than 113,000 affordable homes have been delivered since 2007 by the SNP in government.
Since 2007, the annual average supply of affordable housing per head of population in Scotland has been 13.9 homes per 10,000 population. That is the highest level in the UK. It is higher than in England, which has delivered just 9.7 homes per 10,000 population; higher than in Wales, which has delivered eight homes per 10,000 population; and higher than in Northern Ireland, which has delivered 13 homes per 10,000 population.