SFHA call on Scottish Government to “honour commitment” to fund affordable housing in wake of Spring Budget

SFHA has urged the Scottish Government to honour its commitment to prioritise funding for affordable housing after yesterday’s UK Spring Budget saw Scotland allocated around £300million in additional funds. 

Following the devastating 26% cut to the Affordable Housing Supply Programme, which was first announced in December’s Scottish Budget, the Deputy First Minister, Shona Robison MSP, repeatedly told Parliament that affordable housing would be the Scottish Government’s ‘top priority’ in the event of any additional capital funding from Westminster. 

With Holyrood now set to benefit to the tune of £295million as a result of yesterday’s UK Government Spring Budget, the SFHA has said it is now up to the Scottish Government to honour their commitment to deliver much-needed funding for affordable housing.  

The additional money is a result of funds Scotland receives through the Barnett Formula: whereby UK Government spending in England is passed on proportionally to the devolved administrations in the rest of the UK. 

Whilst the £295million is classed as resource funding, the Fraser of Allander Institute has made clear that the Scottish Government can make the decision to transfer this to its capital budget, which would then allow it to maintain its commitment to invest the money in affordable housing. 

SFHA is also writing to the Housing Minister, Paul McLennan MSP, to set out this request and reiterate the cost of an over-reliance on private investment. 

Reacting to the Spring Budget, SFHA Chief Executive Sally Thomas said: “From the moment the Scottish Budget was announced, we have been clear that the £196million cut from the Affordable Housing Supply Programme would have devastating consequences for tackling poverty and homelessness in Scotland. 

“We have heard repeatedly from the government that housing would be the priority for any additional funds – so we are calling on the government to honour that commitment and use the powers they have to reinstate what was cut now.  

“With the housing emergency, anything less would be a betrayal of nearly quarter-of-a-million people in desperate need of a social home.”