Advisory Group on Economic Recovery calls for accelerated investment in affordable housing

An independent advisory group, set up to provide expert economic advice to the Scottish Government in response to the Covid-19 crisis, has called on the government to accelerate investment in housing as part of its recommendations to support Scotland’s recovery from the pandemic.  

In its report, the Advisory Group on Economic Recovery said: “Investment in housing has an important part to play in supporting Scotland’s recovery, in supporting jobs, creating confidence and contributing to both social policy and climate change goals. 

“The Scottish Government should develop mechanisms to accelerate investment in housing, and, in particular, affordable housing, in rural as well as urban areas, using its policy and funding interventions to leverage private finance wherever possible. The Scottish National Investment Bank should play an important role in this effort, under its mission-oriented approach.” 

The group, which is led by senior businessman and government strategic adviser Benny Higgins, has made 25 recommendations that will now be considered by the Scottish Government. Other recommendations include: 

• a Scottish jobs guarantee, in partnership between business and government, should be introduced to address unemployment, with refocused skills strategies and decisive steps to align teaching and learning in universities and colleges to the needs of business 

• prioritisation of sector plans to deliver a green recovery, where the coincidence of emissions reductions, the development of natural capital and job creation are the strongest 

• critical investment in the country’s digital infrastructure to improve connectivity, reduce inequalities and build the country’s resilience 

• urgent action to develop a stronger relationship between business and government on the strategy for Scotland’s economic recovery. 

SFHA has welcomed the group’s report and its recommendation calling for investment in affordable housing. 

Lorna Wilson, SFHA Head of Policy and Innovation, said: “We are pleased the group has recognised the vital role that affordable housing has to play in Scotland’s recovery from the coronavirus crisis.  

“By accepting this recommendation for accelerating investment in affordable housing and delivering much-needed homes, the government can rebuild our economy, create jobs and reinvigorate our communities – this economic boost is needed now more than ever.”