Budget cut “seriously threatens” housing associations’ ability to build new homes

Initial analysis found that the headline Housing Supply budget line of £489 million shows a 17.5% drop from the £605 million assigned to it in last year’s budget. However, the overall Affordable Housing Supply Programme budget decrease is less at 9.5%, with a total of £752 million available once financial transactions and the Transfer of Management funding are accounted for.

Sally Thomas, SFHA Chief Executive, said:

“We welcome the Scottish Government’s aim in this budget to try and provide further support to those in greatest need, with increases to Scottish social security benefits and £20 million to extend the Fuel Insecurity Fund in 2023/24, which should help tenants who are struggling with spiralling living costs and heating bills.

“However, social housing provides one of the greatest protections against poverty, and we are alarmed to see a cut to the Affordable Housing Supply Programme which, coupled with continuing uncertainty over rent setting and inflationary pressures on costs, seriously threatens our members’ ability to build homes. A budget decrease of any amount will still reduce the number of homes our members can build, and we urge the government to rethink this cut if it’s serious about tackling poverty in Scotland.”