Scottish Budget – Still Time to Build a Budget for Housing

Six major national organisations representing the Scottish housing and construction sectors have joined forces to call on the Scottish Government to use extra funds at its disposal to build badly-needed new affordable housing  , as the Scottish Budget Bill is set to be debated in the Scottish Parliament today (Wednesday 25th January 2012).

The six organisations - the Scottish Federation of Housing Associations (SFHA), Shelter Scotland, the Scottish Building Federation, the Chartered Institute of Housing (CIH) Scotland, the Association of Local Authority Chief Housing Officers (ALACHO) and UCATT (Union of Construction, Allied Trades & Technicians) - are seeking changes to the Scottish Budget Bill for 2012-13.

The Bill currently includes a 30% cut for affordable housing (1), one of the biggest cuts anywhere across government.

Speaking ahead of the debate, Dr Mary Taylor, SFHA Chief Executive said:

"We urge the Scottish Government to pay heed to the significance of six major housing and construction organisations all calling for the same thing - a reasonable level of investment in new-build affordable housing, to alleviate some of the dire need for homes, and provide an unrivalled boost to Scotland's economy.

"Housing associations and co-operatives have already proved they can use government investment, added to private finance they raise themselves, to build large numbers of high quality, energy efficient housing, that will serve our communities well.

"Housing associations and construction firms are also one of the major employers of apprentices - important to bear in mind at a time of skyrocketing youth unemployment.

"We urge the Scottish Government to use the extra money at its disposal this year to invest in quality affordable housing that will provide a lasting benefit to Scotland."

Scottish Building Federation Chief Executive Michael Levack said:

"We are putting our weight behind this campaign since housebuilding has been one of the hardest hit sectors of the construction industry during the current recession. Rates of private sector new housebuilding are at a historic low, while the demand for affordable new homes continues to outstrip supply.

"By bolstering public investment in the housing sector, the Scottish Government will be supporting the retention of jobs, skills and capacity in Scotland's crucially important construction industry while meeting a critical need for high quality, affordable new homes throughout the length and breadth of Scotland."

Jim Strang, Chair of CIH Scotland, said:

"We know times are tough but housing took a disproportionately substantial cut in the draft budget. With grant per unit now at incredibly low levels, even an additional £30m annually could produce a further 900-1,000 affordable homes a year, with the majority of them social rented. It's a pity, then, that the Scottish Government didn't take advantage of the low grant rates to procure more homes - levering in a lot more private finance - for such little public money."

The group of six has already sent a joint letter (2) to Cabinet Secretary for Infrastructure & Investment Alex Neil and Housing Minister Keith Brown to urge they use extra money from the Coalition Government to reverse cuts to the hard-hit housing budget.

In the letter, the groups stated this is one of the best means at the Scottish Government's disposal of boosting the Scottish economy and meeting huge need for affordable housing.

"The latest Scottish Housing Statistics show an overall decline in the number of new affordable homes being built by local authorities and housing associations is taken together. Our sector has the capacity to make use of the available funds to good effect now and long term, and we can deliver swiftly.

"We understand that the recent Autumn Statement by the UK Chancellor has made available extra funds to the Scottish Government for capital expenditure. Added to the £57m Scottish ‘consequential' from the English Council Tax freeze, this could be a substantial sum of money available to bolster government support for affordable housing, at an essential time.

"According to research for the Scottish Government, investing in affordable housing is an effective way to boost jobs and stimulate the economy. It would also meet huge need. Currently at least 156,000 households in Scotland are stuck on waiting lists.

"... when the economy is struggling, there is no better way than investing in housing to support jobs, apprenticeships and economic development in our communities hardest hit by recession. At the same time this would enable us all to meet overwhelming needs."

The letter concludes:

"Therefore we urge the Scottish Government to use this unallocated capital expenditure to help build more affordable homes, to benefit local economies and meet local need."

ends

For further information, contact Claire Munro on t: 0141 567 6224 m: 07771926778 or e: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Visit our website at www.sfha.co.uk
Follow us on Twitter @sfha_hq
Find us on Facebook SFHA- We're Housing Scotland

NOTES:

1) The overall amount of funding available for new investment in housing has been cut by over 30% and subsidy levels were cut for 2011-12 by around 48%. 2.5. According to the 2012-15 Draft Scottish Budget, this is set to be cut further; by nearly 50% in the first two years.

2) The joint letter to Cabinet Secretary for Infrastructure & Investment Alex Neil can be downloaded HERE

SFHA

• The SFHA was established in 1975 and has around 170 members providing affordable housing and wider community services in Scotland, as well as a further 200 commercial members. The SFHA is owned by its membership and exists to support the work of housing associations and co-operatives in Scotland by providing services, advice and good practice guidance.

• The SFHA is the voice of the principal builders and managers of new affordable housing for rent in Scotland. Housing Associations own and manage around 40% of the country's affordable rented housing stock, over a quarter of a million homes across Scotland.

• Housing associations and co-operatives are not-for-profit bodies regulated by the Scottish Housing Regulator.

Scottish Building Federation

• Founded in 1895, the Scottish Building Federation (SBF) is the lead voice of the construction industry in Scotland, an industry which is the largest source of private investment north of the border and contributes around £10 billion (c.10%) to Scotland's GDP. The overall aim of the organization is to ensure that the important contribution of the Scottish construction industry to Scotland's economy and society is recognized and valued, which it does through working with industry, government and the media, and that industry standards are raised.

• The SBF promotes the interests of the construction industry to a diverse range of stakeholders and is the leading employers' federation for the industry, representing over 700 companies from Orkney to the Borders.

• The SBF provides an exclusive range of invaluable support services to a wide range of member companies, whether these are small single trade firms or major regional and national contractors. The shared objective that all members have in common is their commitment to health and safety, skills and integrity, ensuring the delivery of the highest standards of performance, professionalism and quality within the industry in Scotland.

Shelter Scotland

• Shelter Scotland provides expert support services, online advice and a free national helpline for everyone facing housing and homelessness difficulties. For advice and support visit http://scotland.shelter.org.uk or call 0808 800 4444.
CIH
• CIH is a registered charity and not-for-profit organisation. As the professional body for housing it is our job to help housing professionals - we only exist to help you and your organisation be fantastic. CIH was formed in 1916 and for nearly 100 years our purpose and the passion that drives it has remained constant and true.

ALACHO
• ALACHO stands for the Association of Local Authority Chief Housing Officers.

UCATT
• UCATT is the Union of Construction, Allied Trades and Technicians. UCATT represents people working in construction.

 

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