John Swinney urges UK Government to take action on housing crisis ahead of UK spending review

The First Minister has urged the UK Government to take more action and spend more money to address Scotland’s housing crisis in the upcoming Spending Review.

At least 12 local housing emergencies have been declared across Scotland, with the first declared by Argyll and Bute Council in June 2023. Edinburgh, Glasgow, Fife and West Dunbartonshire Councils followed suit.

The Scottish Government formally declared a national housing emergency on May 15, 2024.

The number of people in Scotland living in temporary homeless accommodation is at a record high, according to a report from the Convention of Scottish Local Authorities (COSLA).

Pressures have also increased on social housing.

Speaking ahead of his speech at the Scottish Federation of Housing Associations in Glasgow on Tuesday, the First Minister re-emphasised that Scotland “faces a housing crisis”.

He said the Scottish Government is already investing £768m this year in affordable housing, but he’s calling for the UK Government to do more.

“We continue to call on the UK Government to provide multi-year funding for housing to give developers and third sector organisations long-term certainty,” Swinney said.

“The UK Government must also commit to unfreezing Local Housing Allowance rates. These rates set the amount that private renters receive to help with rent. Increasing these rates can be a key lever that can help protect tenants.

“Repegging these rates to the 30th percentile of local rents would mean greater security for many households across Scotland.”

Swinney’s comments have come less than 24 hours before UK chancellor Rachel Reeves is set to present a major UK spending review.

The review technically isn’t considered a ‘fiscal event’ – meaning there shouldn’t be any detailed tax or spending decisions.

However, the chancellor is expect to plot out her public spending plans for the next three years, department by department.

It will reveal Labour’s priorities, and could see some areas of public spending cut to provide more money to others – like the NHS or defence.

It will also chart a course for spending on things like housing.

Reeves will reveal the spending review on Wednesday after Prime Minister’s Questions at noon.