Budget could ‘completely derail’ work to tackle housing emergency, charity warns

The Scottish Government’s budget could “completely derail” efforts to tackle the housing emergency, a charity has warned.

Shelter Scotland says it is “deeply concerned” by cuts to the housing capital budget and the freezing of funding for homelessness services.

In written evidence to Holyrood’s Social Justice Committee, the charity hit out at plans to cut £112.8 million from the housing capital budget, the equivalent of 16%.

The Scottish Government’s 2023/24 budget lists a total planned spending of £489 million on housing capital, down from £601.8 million the previous year.

Shelter Scotland said the budget plans should have been an opportunity for ministers to tackle a backlog in temporary accommodation.

However its written evidence said: “Unfortunately, they have failed to take that opportunity and appear to be failing to grasp the seriousness of Scotland’s housing emergency and the impact it is having on our communities.

“We are deeply concerned at the significant 16% cut to the housing capital budget in 2023/24, which has the potential to completely derail the Scottish Government’s ability to reduce housing need in this parliamentary term.”

Shelter Scotland said the cuts should be reversed in order to meet a target of 38,500 new social homes delivered by 2026.

It also said homelessness services should be fully supported and called for a new emergency fund to be created.

The charity continued: “The newly rebranded ‘Homelessness Prevention Fund’, a combination of previous temporary accommodation funding and hostels grant funding, represents a spending freeze when compared with 2022/23.

“When pressure on the system is growing and costs for local authorities are rising, keeping funding at the same level as last year is an inadequate response to Scotland’s housing emergency.”

Shelter Scotland’s letter to the committee added: “Freezing funding for homelessness services and cutting funding for the delivery of new social homes is not in line with the Scottish Government’s international obligations to progressive realisation of rights.”

Social Justice Secretary Shona Robison was asked about the letter when she appeared before the committee on Thursday.

She said the Government remains committed to spending £3.5 billion on affordable housing over the course of this Parliament.

The minister said: “The profiling of it was always going to ebb and flow depending on resources.”

She said the UK Government is providing less money for capital projects.

Ms Robison said: “If you add into that the impact of high inflation, that means every pound available for the affordable housing supply programme this coming year is worth less than it was last year and much less than the year before.

“So context is important.”

She said the Government is taking steps to mitigate this, including through a £15 million transfer from the net-zero budget to help heating systems in affordable homes.

Councils are also receiving an increased budget for homelessness prevention activity, she said.