Sturgeon's plan for 1200 homes to 'build way out of recession'

Deputy First Minister Nicola Sturgeon has announced extra cash for housing and money to help 100,000 vulnerable people while demanding the Chancellor change tack on the economy.

Ms Sturgeon called on George Osborne to abandon austerity cuts and instead invest in capital infrastructure, saying: "We must build our way out of recession."

To help do that in Scotland she announced £45m would be spent building 1200 new homes across Scotland.

In addition she revealed the Scottish Government would commit £9m additional funding to help some of the country's most needy.

That cash, she told the SNP annual conference in Perth, would provide "essential crisis support in these difficult times for 100,000 more of our most vulnerable people".

The Deputy First Minister insisted: "The answer to Tory cuts is to control our own resources. Control of our own resources so we can get our economy growing."

With figures this week showing the recession in Scotland had deepened and unemployment had risen, Ms Sturgeon claimed the SNP administration was doing everything it could within its current devolved powers to boost the economy.

But she said more was needed, telling Mr Osborne: "Our economy needs a capital stimulus and it needs it now."

The Scottish Government has repeatedly urged Westminster to invest more cash in major infrastructure projects.

Ms Sturgeon, also the Infrastructure and Constitution Secretary, urged the Chancellor: "Use the autumn budget statement to increase capital spending and accept, once and for all, that we will not cut our way out of this recession.

"We must build our way out of recession."

Ms Sturgeon said the £45m for housing, which is being spent this year and next year, would protect up to 800 jobs.

She described it as a "shot in the arm for house building in Scotland" and said it would be a "boost for the construction industry that so badly needs our help and support".

The cash will deliver around 1200 homes, including hundreds of council and housing association properties, but will also provide support for those on low incomes who wish to buy their own homes through initiatives such as shared equity schemes.

Meanwhile the £9m to help some of the most vulnerable Scots will go towards the creation of a new Scottish Welfare Fund, which will come into force after April, when responsibility for the existing Social Fund transfers from Westminster to Holyrood.

The current fund of £24m provides community care grants, used to help people live independently, as well as crisis grants which Ms Sturgeon said helped those who had "nowhere else to turn".

The SNP deputy leader said: "Our Scottish Government will not desert any of Scotland's people in times of need."

The extra cash for housing was welcomed by Graeme Brown, director of Shelter Scotland, who said the charity had "long called for a big increase in the numbers of socially-rented homes".

But he added: "While this new money is good news, we believe at least 10,000 new socially-rented homes a year are needed to truly begin tackling Scotland's housing crisis. To achieve that level, the Scottish Government must go further."

Margaret Lynch, the chief executive of Citizens Advice Scotland, said the new Scottish Welfare Fund was "an important announcement, as it will help to mitigate some of the damaging aspects of the current welfare cuts".

She described the existing Social Fund as being "the ultimate safety net - the last source of emergency funding for people who are hit by a sudden crisis and literally can't afford to feed themselves or their children".

Ms Lynch said: "We have been calling for the Social Fund to be protected, well-resourced and accessible to those who need it. Otherwise the most vulnerable people in the country will go hungry or get into debt, and possibly lose their home.

"Today's announcement is therefore very welcome, and will make a real difference to many families who are really in need. But of course this is only one step. We need to see more of such measures, aimed at protecting the most vulnerable people from these cuts."

Reacting to Ms Sturgeon's speech, Anne Houston, Chief Executive of Children 1st, said: "Children 1st welcomes the new Scottish welfare fund, especially in light of stringent welfare reforms which are coming down the line from Westminster.

"We are pleased that the Scottish Government has increased the amount of money now going into the fund and that they are removing the loan element.

"It means that families are not forced into further poverty as they try to pay back crisis loans."

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