Scottish Labour has learned that the SNP is proposing to cut the Affordable Housing Investment Programme by over £140 million. The scale of the cuts is revealed in a private document prepared to assist local authorities with detailed planning.
“Western Isles are facing reductions “
The ‘Resource Planning Assumptions’ for 2010/11 show that councils are being told to prepare for massive cuts of 45 per cent across the board. The SNP’s cuts will affect every part of Scotland.
The biggest cut is in the Highlands, which will see its housing budget reduced from £32 million to £17 million, while Argyll and Bute will see its funding cut by well over £5million.
MSP Rhoda Grant
Orkney’s allocation is being cut by more than £3.5million, while the Shetland Isles and Western Isles are facing reductions of well over £1million. There are currently 140,000 people on council house waiting lists.
Highlands and Islands Labour MSP Rhoda Grant said: “These cuts are devastating both for those one the waiting list for affordable housing and for those who work in the building trade.
“Council tax freeze”
“I am constantly contacted by people who need affordable housing and this will be a blow to them
“The building industry has the capacity to build more houses in the present climate and because of the lack of competition this could be done very competitively – government should be taking advantage of this situation to deal with the shortage in affordable housing – instead they are adding to the economic woes.”
Scottish Labour Housing Spokesperson Johann Lamont said: “The scale of the cuts imposed by the SNP Government is frightening. It looks like the SNP is asking the housing industry and local communities to pay the price to protect its own party political priorities, like the centrally imposed council tax freeze.
“Much needed homes”
“I believe ministers are making the wrong choices. It is economic madness to cut the money for house building in a recession. The black hole they have created in the budget will throw local housing plans into chaos and cost thousands of jobs.
“Industry representatives have already warned that they face the worst crisis since the Second World War, with 41 per cent fewer new homes completed in the last quarter of 2009 compared to the previous year.
“The SNP has completely failed to grasp the scale of the crisis and their decisions are actually making it worse. Ministers need to treat housing as a genuine priority and find resources to support construction jobs and provide much needed homes.”
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