Chamber and committees

Going back to the rent control policy and unintended consequences, the Scottish Government has set itself a target of providing 110,000 affordable homes. We are now hearing from housing associations that they are not able to deliver that. Given what you said about the need for more supply, what impact do you think that the policy will have? Have you spoken to housing associations about it? They are really concerned about the very negative consequences that it will have on their ability to progress projects, which they might have to scrap.

Yes.

Good morning. I want to ask two questions, one of which concerns partner organisations in local government. In not just this budget year but previous ones, as a result of decisions by Scottish ministers, councils have seen cuts to their budgets. In what way would a flat-cash allocation to local authorities impact on your organisations and the services that local government helps to deliver?

If Danny Boyle does not want to come in on that, I am happy to hand back to you, convener.

That is helpful. A concern about which the committee has heard a lot and of which I am sure that you are acutely aware is the decline in the number of small to medium-sized builders, who often develop and take forward such projects. You mentioned funding being demand led. Given the current cost-of-unit price, what can the Scottish Government do to support smaller developers, especially when they are looking to develop affordable housing, which is often on a small scale?

I want to pursue a point that Marie McNair raised on forecasting and financing for housing associations, which are quite clear that the impact of the Scottish Government’s rent controls will mean their having to look again at their 10-year financing and consider whether projects will be affordable. Given that the committee will not see the bill until next week and that we have not had the chance to consult a wider group of stakeholders, what impact assessment has the Scottish Government undertaken to consider whether the approach will pull the plug on many vulnerable potential developments?

Good morning, cabinet secretary and officials. Thank you for joining us.

In your opening remarks, cabinet secretary, you touched on the remote, rural and island housing action plan. The Scottish Government plans that 10 per cent of the 110,000 affordable homes will be located in remote and rural communities. Can you update us on where the Government is with that and what percentage has been delivered?

Given what you said about this having to be a timed intervention—for six months—and the fact that we have just agreed to the Scottish social housing charter, which provides a framework whereby rents can be discussed between housing associations and their tenants, why has the social housing sector been included in the bill at all? It sounds like that might create more problems for the sector over the six-month period than is necessary.

Yes—I have plenty of time.

Overall, this has been a good and important debate. We all recognise the need to act to address the serious and important issue of Scotland’s depopulation and demographic challenges.

I grew up in a village called Bankfoot, which is nine miles north of Perth. I say without—I hope—sounding older than my years that, ahead of the debate, I was considering what the village looked like when I was growing up. It had a GP surgery, a police station, a community nurse, a hairdresser, a post office and a petrol station, as well as two mechanic garages. The village had three shops and—perhaps most important to address isolation and encourage social life—it had three pubs, which were also hotels and a restaurant. It is interesting that many houses on Main Street had previously been thriving local businesses—from a butcher to a sweet shop and an ironmonger. Today, the village has one pub and one shop.

My point is that, across Scotland, our communities have changed and have seen a huge loss of key public and private services that used to help to sustain and provide local employment. That is all the consequence of changes to our shopping and working lives.

Recent figures from the Scottish Fiscal Commission suggest a projected 16 per cent decline in population over the next 50 years. That should be a wake-up call to all of us, regardless of party politics. Finding and developing the solutions that we need to put in place is important, and a debate on rural housing policy is well overdue. Perhaps today’s debate will be the start of an annual debate on population decline—I think that all parties would like to have such a debate.

Perhaps a key starting point involves language. Referring to communities as remote does not often help the situation. Who would want to move to somewhere that was considered remote? What message does that send? We must consider language when we talk about the communities that we hope people will relocate to and bring up their families in.

Access to good affordable housing is often the critical factor in someone deciding whether to move to or stay in a community. Many rural areas suffer from a lack of affordable housing. Developing innovative housing solutions is vital; often, they will be small in scale.

The Scottish Government has committed to 10 per cent of the 110,000 homes that it has a target to deliver being located in rural and island communities. I welcome that, but questions are increasingly being asked about deliverability. The Local Government, Housing and Planning Committee has heard about the decline in the number of small and medium-sized builders, which may have a practical effect on all such developments ever happening in rural communities.

The committee has also heard evidence about the importance of rural housing enablers and community-led housing to develop new affordable homes in rural areas. We have heard a lot about that today from members with rural constituencies and regions.

Community Land Scotland said that

“there are unnecessary complexities in the funding and planning processes”.

That is something that we in Parliament must look at.

The Scottish Government’s forthcoming remote, rural and island housing action plan needs urgently to address all those issues if we are to meet the housing requirements of those communities.

As Donald Cameron said, we know that the SNP-Green Government has spent only around half of its rural and islands housing funds since they were made available in 2016. I hope that that issue can be prioritised. Developing new models presents an opportunity to bring back empty housing stock into use, which is an issue that a number of members have raised.

Research by Scotland’s Rural College has included the possibility of setting up an empty house bank. Through the akiya bank approach in Japan, local authorities are able to list unused houses for sale or rent with the goal of attracting incomers to use them. We should look at doing that in rural areas here.

One part of Scotland is bucking the trend: the capital. Edinburgh and the south-east of Scotland continue to be resilient—the only part of the Scottish economy that has seen consistent and continuous economic growth. I welcome that.

Like the cabinet secretary, I am an Edinburgh MSP. The challenges that our communities face are also important and need to be put on the record. The Scottish Government is presiding over the lowest levels of funding for NHS Lothian and for the City of Edinburgh Council at the same time as we are seeing an increasing population with growing demands.

Ensuring the financial sustainability of public service delivery is becoming more difficult in the capital. SNP-Green ministers need to recognise that. There must be a genuine review and revision of the funding formulas.

The fact that levels of homelessness and children living in temporary accommodation are higher in the capital than anywhere else in Scotland is a direct consequence of not being able to deliver on our housing needs. Ministers need to really understand that.

Attracting people to live, work and contribute to our—