SFHA Urges Budget to Boost Homes, Boost Jobs

As the Scottish Parliament prepares to vote later today (Wednesday 9th February) on the Scottish Budget 2011-12

, the Scottish Federation of Housing Associations (SFHA) is urging all MSPs to continue to invest in affordable housing , to boost vital supply, protect and create jobs and provide services.

As it stands, housing is set to be one of the Budget's biggest losers. According to the published figures in the draft Budget 2011-12, the Housing and Regeneration Budget will fall from £488m in 2010-11 to £393m in 2011-12, a drop of 19%. However, when accelerated investment from last year is taken into account, the fall is over 30%.

However, in its report on the Budget, the Parliament's Finance Committee cited the evidence of two leading Scottish economists that investment in affordable housing is the fastest way to boost economic growth.

SFHA Chief Executive Mary Taylor said:

"We want to see MSPs recognise that affordable housing is taking more than its fair share of the pain. We call on MSPs to reverse some of the planned 30% cut to the affordable housing budget.

"With the Government's £50m Challenge Fund the only new money next year, we could be looking at less than 1,000 new houses, when we should be building nearer 10,000.

"Investing in housing is one of the best ways to boost jobs and the economy quickly, at the same time as meeting the huge demand that exists for affordable rented housing.

"Investment in housing will also provide a lifeline to the construction industry, sustained in Scotland by social housing contracts in recent years and which now looks set to suffer, as the latest UK GDP figures show.

Dr Taylor added:

"Associations and co-operatives provide a range of services for a range of needs. We also want to see this Budget target public funds on preventative spending and housing support services which allow us to support our elderly or vulnerable populations in their own communities, at a lower long-term cost."