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£25million boost for council housing

Scottish Government reveals cash to build new generation of council housing to help 200,000 people on waiting lists.

09 February 2010 14:29 GMT

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£25million boost for council housing

Council housing: £25m boost for new generation of tenants

The Scottish Government announced funding of £25million to help build a new generation of council housing.

But campaigners said the fund will not help the 200,000 people on housing waiting lists across Scotland.

The new money takes the total funding set aside for council housing since April last year to £75million; £50million was allocated in two previous tranches to allow work to start on almost 2,300 homes.

Housing Minister Alex Neil said: "Local authorities across Scotland have enthusiastically embraced the opportunity to apply for funding to help reverse decades of decline in council house building.

"They are working with us to deliver more affordable homes and in doing so, encouraging development that chimes with the key themes of our Economic Recovery Plan."

A report published on Tuesday warned that private house building is in its worst crisis since the Second World War.

Shelter Scotland director Graeme Brown said: "Last week John Swinney failed to address the £204million hole in the housing budget that could have kept construction workers across Scotland on sites building homes next year.

"Whilst today's announcement does not include new money it will keep a number of sites going during this difficult time.

"But more needs to be done to deliver for the 200,000 people on housing waiting lists across Scotland and the thousands of construction workers facing a bleak 2010."

Councils have until the end of April to apply for the funding.

Councillor Harry McGuigan, of local government body Cosla, said: "Councils across the country have shown a willingness to build new homes by embarking on one of the most significant programme of council house building in recent times.

"The Government's pot for new homes is over-filling with demand and there is a compelling case for freeing up more resources, which will allow councils to build more affordable homes and continue to contribute towards Scotland's economic recovery."

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