Holyrood set to double cash for council house building

Published on Friday 17 April 2009 09:48

THE Scottish Government is to double the cash on offer to local authorities to kick-start council house building.

Deputy First Minister Nicola Sturgeon is due to tell the SNP's spring conference in Glasgow this afternoon that funding for new council homes will increase from 25m to 50m across Scotland.

She will say the money, which will be made available over the next two years, will also secure up to 4000 jobs.

Ms Sturgeon will also use her speech at the conference to announce the creation of 600 new hospital cleaning jobs across the country. The 5.4m investment, designed to tackle the problem of superbugs, will include 86 extra cleaners for NHS Lothian at a cost of 749,764.

Last year, Ms Sturgeon banned any further privatisation of hospital cleaning and catering services anywhere in Scotland. The new cleaners will be employed directly by health boards.

Ms Sturgeon will tell delegates: "Ensuring high standards of cleanliness is a simple yet effective way to minimise the spread of infections.

"This is part of the Government's continuing drive to stamp out hospital superbugs and reassure people about the quality of care they will receive.

"But more cleaners won't just improve cleanliness in our hospitals – by providing 600 jobs it will also give the economy a shot in the arm at this difficult time."

The economic downturn is also a key factor behind the decision to increase investment in council house building.

A year ago, Ms Sturgeon used her party's spring conference at Heriot-Watt University to announce the original package of 25m over three years to encourage a new generation of Scottish council housing. Before that, local authorities received no subsidy for building council houses.

Just last week, allocations were announced, including 9.2 million to build 672 new homes in Edinburgh and the Lothians.

The Capital was awarded 1.675m to help build 67 new homes, while East Lothian received 2.625m for 105 homes, Midlothian got 2.52m for 252 homes and West Lothian was handed 2.48m for 248 homes.

Edinburgh's housing convener Paul Edie said at the time he was "extremely disappointed" at the level of support for the city and warned the money went nowhere near addressing the need for social housing in the Capital. The council had asked for 10m.

More than 1000 council houses are due to be built across Scotland as a result of the funding.

Ms Sturgeon will tell the conference the 50m investment will secure 3000 jobs directly in the construction sector and 1000 indirectly in the wider economy.