Scrutiny of the Draft Budget 2012-13 and the 2011 Spending Review: Evidence from Shelter Scotland

Based on the partial information we have at present the overall housing and regeneration budget will be cut by an average of 26% in cash terms over the spending review period as compared to the current year (2011-12).

Looking specifically at new affordable homes, there was £1.7 billion in the previous CSR (2008-11) to deliver 21,544 affordable homes, of which over three-quarters were socially-rented. The equivalent amount in 2012-15 is £628 million, which is projected by the Scottish Government to result in 18,000 affordable homes of which two-thirds (12,000) are to be socially-rented. So a decline of 63% in money (in cash terms) will result, apparently, in only 16% fewer affordable homes.

The dramatic changes in funding methods will result in a reduced programme of socially-rented homes; place upward pressure on rents at a time when housing benefit is being cut; and rely on a very new model called the National Housing Trust which, more properly, should be seen as adding to the stock of privately-rented homes.