Meeting of the Parliament 01 October 2024
As Jackie Dunbar has said, Scotland’s capital budget, which builds affordable homes, faces a 9 per cent cut from the UK Labour Government. Previous capital cuts to the Scottish budget meant that difficult choices had to be made, and contractual legal commitments were prioritised. The impact on the housing budget is clear to see, and that has stymied the pace and scale at which we can deliver affordable homes.
In my previous answer, I mentioned interest rates, which are still at a high. We know from our local authority and health partners that there is capacity for more investment to deliver identified local strategic priorities, should we receive additional capital and financial transactions funding—again, I come back to the 62 per cent cut in the financial transactions budget, which Labour could change in a number of weeks. We continue to call on the UK Government to recognise that and to increase our allocation.