Programme for Government: Key updates for SFHA Members

It has already been a busy week first week back in Parliament straight off the back of a hectic summer politically.  

On Tuesday, the Cabinet Secretary for Finance gave a pre-budget fiscal update which outlined £500 million of spending cuts across the public sector in this financial year. This is due to growing financial pressures – mainly from public sector pay deals – and longer–term issues of UK Government austerity, high inflation, and the pandemic. Because of the devolution settlement, the Scottish Government must balance the budget each year.  

In the update, the Cabinet Secretary outlined the challenges facing Scottish Government's capital budget, warning that not all capital commitments will be affordable. Capital funding is expected to reduce by 8.7% over five years, equating to a loss of £1.3 billion from 2023-24 to 2027-28. It is essential that capital investment in social housing is protected, and we will continue to make this point to the Scottish Government and lobby the UK Government to protect the capital budget. 

We then had the Programme for Government 24-25 yesterday, where the First Minister set out his government’s legislative priorities for the coming parliamentary year, the last full one before the next Scottish Parliament elections in 2026. You can read our full member briefing here: Programme for Government 2024-25. 

It was encouraging to hear the First Minister recognise the importance to people of having a safe and secure home, and the role housing plays in tackling poverty and contributing to a stronger economy. However, it is fair to say that the commitments to housing were mostly marginal and the funding outlined does not represent any new investment. The £600 million earmarked for the Affordable Housing Supply Programme still represents a cut of over a fifth compared to the previous Scottish Budget. 

We were disappointed that there was no explicit mention of an exemption for Mid-Market Rent homes within the private sector rent controls, but we will continue our lobbying on this as the Bill progresses through Parliament and are ready to work cross-party to lodge amendments as needed. 

We also know that the UK Government’s decision to extend the Household Support Fund means about £40m worth of Barnett consequentials will flow to the Scottish Government. In line with our Programme for Government asks and what our members are telling us, we will be lobbying Scottish Government to direct into a Cost-of-Living Fund to support those most in need as we know we are still enduring a cost-of-living crisis. 

This afternoon there will be a debate on eradicating child poverty in Parliament and we have briefed MSP’s on how social housing is a key protector against child poverty and what support our members need to continue the great work you do in this area. 

As ever if you would like any more information on this or anything to do with our public affairs work then please do not hesitate to get in touch.