Spring Budget 2024: Shona Robison in plea for extra cash to help alleviate housing crisis as expense of hospital builds

SNP ministers will use any extra Westminster capital funds to build affordable homes despite hospital projects being paused

Shona Robison has called on Westminster to help solve Scotland’s housing crisis as she appealed for the Chancellor to pump funding into her Government’s programme to build affordable homes.

Any extra money made available to Holyrood for capital spending in Jeremy Hunt’s Spring Budget will be prioritised for the Scottish Government’s programme to build affordable homes, despite projects to rebuild hospitals and construct NHS treatment centres being put on hold.

The plea comes amid concerns over Ms Robison slashing around £200 million from the Scottish Government’s affordable housing supply programme (AHSP).

Deputy First Minister Shona Robison. Picture: PA

In the 2023/24 budget, the Scottish Government spent £752 million on the AHSP. But that will reduce to £556m next year - a £196m cut in cash terms or £205m in real terms.

The 2024/25 financial year will be the second straight year the Scottish Government has reduced funding for the programme.

The capital element of the budget, which mainly funds grants for councils and housing associations to build new homes, has been cut by £75m.

The financial transactions core block grant from the UK government has been reduced from £466m in 2022/23 to just £176m in 2024/25.

Ahead of Mr Hunt’s Budget, Ms Robison said: “Today the Chancellor must not repeat the mistakes of the Autumn Statement – where £27 billion of fiscal headroom was used to fund tax cuts – and instead prioritise the investment needed for Scotland’s people and public services.

“Key to that is funding for infrastructure. We’ve already committed £6.3bn of capital spending as part of the 2024/25 Scottish Budget, underpinning high-quality public services, creating jobs and supporting the economy.

“However, we are expecting a real-terms cut to our UK capital funding of almost 10 per cent over five years, totalling around £1.6bn – enough to build a large hospital. Likewise our financial transactions budget – key to delivering affordable housing – has been cut by 62 per cent.

“With the UK now in recession, capital investment to kickstart economic activity is needed now more than ever.”

A spokesperson for the First Minister told The Scotsman yesterday the Scottish Government does not “subscribe to the point of view” that Scotland is engulfed in a housing crisis.

Shelter Scotland director Alison Watson said "the situation we’re seeing is beyond critical”.

She added: “More than a decade of austerity politics from the UK government have, of course, contributed to Scotland’s housing emergency. However, as the recent brutal and disproportionate cuts to housing show, so too have poor decisions on the part of the Scottish Government.

“The finance secretary has made clear that housing will be her number one priority if more capital funding is forthcoming. I hope we have the chance to hold her to that promise.”

A UK government spokesperson said: “The Scottish Government is currently receiving a record £41bn per year funding settlement from the UK government – the largest in the history of devolution and one that was further topped up by decisions taken at Autumn Statement.

“It can also borrow up to £450m for capital investment on top of this record funding, and the UK government has agreed to inflation-proof that limit going forward."