More action needed on housing to help boost Scottish economy

The Scottish Government has today announced £10million of housing funding provided from Barnett consequentials.

The Scottish Conservatives welcome the extra money, but it is only a small step towards reversing a cut of more than £100million in the housing budget.

The SNP has already missed its target on the number of houses to be built under phase one of the National Housing Trust.

Some 1025 were originally pledged to be built under phase one, contributing to the Scottish Government's commitment to build 6,000 units a year.

However, it has emerged that they have managed to build a mere 16 houses, with plans to build only 598 more.

Scottish Conservative Finance Spokesman, Gavin Brown MSP said:

"While a welcome boost to the construction industry, this £10million is a mere fraction of the £100million slashed from next year's housing budget.

"I'm calling on Keith Brown to join the Scottish Conservatives in trying to reverse this cut in order to help with jobs and the economy.

"The Scottish Government has to get serious about making affordable housing a priority because so far they have failed miserably.

"It's high time they used the powers they have to come up with a budget that helps the Scottish economy rather than continually moaning about the powers they do not have."

From the Official Report, 26th January 2012:

Alex Johnstone (North East Scotland) (Con): To ask the Scottish Executive how many homes will be constructed under phase 1 of the national housing trust initiative. (S4O-00602)

The Minister for Housing and Transport (Keith Brown): Contracts for 614 homes have been signed under phase 1 of the national housing trust initiative and a further deal is being pursued. The first 16 homes are already complete in Stirling and have been let to tenants.

Alex Johnstone: Under phase 1, only 12 local authorities moved forward. Five dropped out, which left only seven in place. The minister originally projected the construction of 1,025 homes, which appears to have been ambitious. Given that the figures show clearly that phase 1 was unattractive to the vast majority of councils and private developers, what evidence can he offer to suggest that phase 2 will not be a similar embarrassment?

Keith Brown: The first piece of evidence is that more than half of Scottish councils have expressed an interest in going forward to phase 2. There is also the fact that the 600-plus houses that are being built under phase 1 are supporting about 1,000 jobs. As John Swinney said yesterday, for an investment of about £2 million by the Scottish Government, more than £100 million has been spent in the construction industry. That seems to be a productive use of Scottish Government resources. Given councils‟ interest in phase 2, the initiative is likely to grow in the future.

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