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

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. Even the Shetland Isles is facing a reduction of over £1 million. There are currently 140,000 people on council house waiting lists.

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.

“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.”

15 March 2010