Labour has attacked the Scottish Government for damaging the construction industry by cutting the housing budget by more than 40%.

The party said the budget for 2012/13 of £214.8m represented a 41% drop on the 2011/12 allocation of £363.7m and described it as a "terrible blow" for people waiting for affordable housing.

Finance spokesman Richard Baker said: "This cut tells you everything you need to know about the SNP's commitment to home building and the Scottish construction industry.

"This will be a terrible blow for people waiting for a home and the thousands of people employed in the already under-fire construction sector.

"At a time when demand for housing is increasing, this SNP cut will mean the thousands of people across Scotland who are waiting for affordable homes will be left waiting even longer."

Scottish Labour obtained the figures from the Scottish Parliament's Information Centre.

The government also came under fire from the Conservatives, who claimed the number of homes being built under the National Housing Trust initiative had been cut to nearly half its original target.

Just 16 homes have so far been built during phase one of the scheme, with plans for 598 more. The SNP had originally pledged to build 1,025.

Tory housing spokesman said: "To have just built 16 houses from a target of over a thousand is ludicrous. The SNP are significantly missing their housing targets and it is simply not acceptable."

Housing Minister Keith Brown insisted the Scottish Government remained on track to deliver more than 6,000 affordable homes a year, two-thirds of which will be social houses.

He also said the Scottish Government's capital budget was being cut by a third by the UK Government.

"Through our emphasis on innovation and on levering in more resources, we are making each Scottish Government pound deliver much more than before. That is the key to supporting the construction industry and hard pressed families in these challenging times," he said.