The Scottish government has announced an extra £120m for its affordable housing programme as part of a revised Budget following confirmation of additional consequential funding from Westminster.
The Scottish government confirmed that it would be receiving additional funding from Westminster (picture: Getty)
A total of £831.6m government grant will now be spent on delivering affordable housing in Scotland in 2021/22, which is slightly below the £843m allocation for the current financial year.
In January, the Scottish government announced as part of its annual Budget that affordable housing spend would be cut by 16% in 2021/22, blaming a shortfall in consequential funding due to decisions made by the UK government in its latest Spending Review.
However, Scottish finance secretary Kate Forbes told MSPs in Holyrood today that the Scottish government has received confirmation that it will gain an additional £1.1bn in consequential funding as a result of the UK government’s coronavirus spending.
The UK government uses the Barnett formula to adjust the amount of funding allocated to each of the devolved nations when it makes changes to public service spending in England.
The additional funding follows the announcement from the Scottish government last week that it will introduce a £3.3bn five-year Affordable Housing Supply Programme (AHSP) if re-elected during the next Holyrood elections in May.
Today’s announcement will bring the total AHSP funding over the next five years to £3.5bn, matching the Scottish government’s commitment over the current parliamentary term.