John Swinney is poised to reverse the £200m housing cut implemented by Humza Yousaf in the SNP Government Budget. The decision, set to be announced today by Finance Secretary Shona Robison, comes as a response to widespread criticism of Yousaf’s cut to affordable housing funding last year. Critics highlighted the urgent housing crisis and homelessness issue in the country, prompting the Swinney administration to reconsider the funding allocation.
The move to reverse the housing cut is seen as a significant victory, especially for those advocating for increased investment in housing. Housing groups have been urging Swinney to not only reverse the previous cut but also potentially increase the housing budget further. Sally Thomas, chief executive of the Scottish Federation of Housing Association, emphasised the importance of prioritising affordable housing to address the pressing need for more rental housing and reduce waiting lists.
Robison’s upcoming Budget, Swinney’s first as Finance Secretary, is expected to see a boost in public spending with additional funds from the Labour Government. While income tax rates are predicted to remain unchanged, the council tax freeze may be lifted, leading to a potential increase in local levies. With a minority government, Swinney is seeking support from opposition parties, with the Liberal Democrats emerging as key players in negotiations.
The Greens, who had previously supported the SNP in passing budgets, are engaging in discussions to ensure their priorities are met, including increased investment in climate action and social programs. However, there is uncertainty about reaching a deal without significant compromises from Swinney. Meanwhile, Labour and the Tories are likely to oppose the Budget regardless of its contents, raising the possibility of an early election if the Budget fails to pass.
In conclusion, the potential reversal of the housing cut reflects a shift in priorities towards addressing critical issues like housing affordability and homelessness. Swinney’s willingness to engage with opposition parties highlights the need for collaboration in crafting a Budget that meets the diverse needs of the Scottish population. The outcome of these negotiations will not only impact public spending but also shape the policy direction of the SNP Government moving forward.