Scottish budget pledges £40 million for affordable homes

The funding will start this year and will provide an immediate stimulus to the construction industry, said Finance Secretary John Swinney.

Swinney also announced a three-year £30m green investment package which aims to help home owners improve energy efficiency, cut bills and tackle fuel poverty. A Renewable Energy Investment Fund will be established to further support for the growing energy sector in Scotland.
"In difficult economic times this Government is doing everything within its limited power to stimulate Scotland's economy, to invest in our young people, protect households, and support front line services," said Swinney.

The Scottish Federation of Housing Associations (SFHA) welcomed the announcements.

"We are extremely pleased that [the draft budget] recognises the immediate economic and social benefits for Scotland in building more affordable homes," said SFHA chief executive Dr Mary Taylor. "We also welcome the Government's recognition of the benefits of focusing on construction investment."

"SFHA research shows housing association and co-operatives have a large number of 'shovel-ready' housing projects which have been ready to go onsite and awaiting of investment decisions, providing jobs and quality housing in diverse communities across Scotland. Many of these may now be able to go ahead," she said.

The Scottish Building Federation (SBF) also welcomed the draft budget, but urged further action at Westminster to reverse cuts to Scotland's capital budget.

"The additional boost the Cabinet Secretary has given to the capital budget today is hugely welcome," said SBF chief executive Michael Levack.

"Despite Mr. Swinney's efforts, Scotland still faces a cut in capital investment of around £5.5 billion or 24% over the period 2009/10 to 2014/15. The UK Government must do more to rectify this situation and demonstrate its own commitment to stimulating economic recovery," he said.