Rachel Reeves has been urged by the Scottish Government to join a “collective effort” to fix the country’s housing emergency.
The Chancellor will set out her first Budget two weeks today at a time of massive pressure on public spending.
Paul McLennan, the SNP Housing Minister, has urged the Labour Government to use the financial statement to announce an investment in housebuilding.
Housing is a devolved issue but Holyrood believes a UK-led push for new homes could lead to more funding via Barnett consequentials.
McLennan also wants to see a commitment to a permanent annual increase to Local Housing Allowance (LHA), which covers rent for families in need.
The Scottish Government has faced a massive backlash from housing charities and opposition parties when it cut the affordable housing budget by £196m earlier this year.
It comes as new figures show people sleeping rough on the streets of Scotland are dying in record numbers despite efforts to tackle the nation’s homelessness crisis.
The death toll among those without somewhere to live has risen by over 40% in the last year from 158 to 206.
McLennan has insisted work is on-going to increase the supply of housing in Scotland.
Writing for the Record, he said: “Scotland is facing a housing emergency, there’s no denying that. Earlier this year, we declared one.
“We want to see an emergency response to the situation and that requires a collective effort from both the Scottish and UK Governments and councils across Scotland. The UK Budget will be the first big test of how the UK Government will respond.
“The Scottish Government has already delivered a number of measures to ensure families can have a place they can call home. We are investing £600 million this year in affordable housing.
“We are also committing £100 million to a new fund to deliver around 2,800 mid-market rent homes. We also recently announced a £22 million investment in what’s known as Charitable Bonds, essentially a loan to social landlords to build more homes.
“Despite that we have been on the receiving end of a nearly nine per cent real terms cut in our capital budget over five years and a 62 per cent cut to what’s called Financial Transactions since 2022-23 from the UK Government. These funds are crucial in building hospitals, schools and affordable homes.
“If the UK Government is serious about tackling the housing emergency, it will reverse the cuts in both our capital funding and Financial Transactions.”
Calling for a rise in LHA, the MSP added: “Families who rely on housing benefits to cover their rent need certainty. They need to know if they will be able to turn the heating on or feed their children.
“Despite the rates for LHA being increased in April following a three-year freeze, the uncertainty around future rates leaves many households unable to plan for the future. It is time the UK Government commit to a permanent annual increase and to link LHA rates with real-world local rents.”
A UK Government spokesman said: “Housing is a devolved responsibility of the Scottish Government and it can allocate funding it receives from the UK Government – including its £41 billion per year settlement – as it sees fit across its priorities.
“We are committed to working with the Scottish Government on housing as a central foundation to our national mission of boosting economic growth and rebuilding Britain.”
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