Scotland's major housing groups today (Wednesday) have hit out hard at today's budget settlement for housing, saying that next year's budget for new affordable homes has been CUT by 6 per cent in real terms.

The housing coalition say the new Scottish Government budget figures will spectacularly fail to provide the 30,000 affordable rented homes [1] Scotland needs by 2011.

The figures for housing have been presented in a different format from previous years - but the groups argue that despite this attempt to massage the figures, the budget has been cut in real terms by 6 per cent for next year.

Although that subsequently rises to a 12 per cent increase in real terms by 2010-11, that is barely enough to keep pace with land costs - far less fund a programme of 30,000 affordable homes for rent by 2011.

In a joint statement, the group said: 'Two weeks ago the Scottish Government set out its ambition, in its housing discussion paper, to deliver increased value for money in the building of new affordable homes.

'The amount announced in the CSR will go no way to meeting the 30,000 target. So today's announcement is a severe disappointment and is certainly a setback for Scotland's ambitious plans to lead the world in tackling homelessness and in housing the thousands of families currently on waiting lists or in temporary accommodation up and down the country.'

The group has led the call for 30,000 affordable homes for rent over the next three years since January [2], arguing that more affordable housing is needed to help house Scotland's people. Currently over 200,000 people are on house waiting lists and there were over 9,000 households in temporary accommodation in March this year.

The coalition also argue that housing is the foundation for the well being of Scotland's people in so many areas - health, education, a sustainable environment, community cohesion and a thriving economy.

Notes to editors

1. For more information visit www.shelter.org.uk/csr_media
2. Contacts details are: Christina Cran, Shelter Scotland, 0844 515 2442 (connects to out of hours), (www.shelter.org.uk); Nick Fletcher, CIH Scotland, 0131 225 4544, 07831 394 731, (www.cihscotland.org); Robert Aldridge, SCSH, 0791 780 6713, or Alice Ann Jackson 0771 889 5583 (www.scsh.co.uk); Alastair Cameron, Scottish Churches Housing Action, 0131 477 4500 or 07900 044577 (www.churches-housing.org); Kenny Simpson, ALACHO, 07768 035 892