Multi-million pound cuts during housing crisis ‘just doesn’t add up’ 

Councillors have rallied against Scottish government cuts to affordable housing which have forced projects to be scaled back.

Development committee chairman Dennis Leak noted that the government had declared a housing emergency - but was also reducing funding.

In Shetland, the proposed cuts could slash £16m from the affordable housing budget for the next five years.

Mr Leask said: “It just doesn’t add up.”

The Lerwick South councillor also said it sent a “very negative message” to the building industry.

He noted one unnamed builder was concerned one of their projects might be “knocked back” due to the cuts.

Mr Leask suggested some of the large developers operating in Shetland might put forward housing plans and provide work for the building sector.

Housing manager Anita Jamieson said the funding reduction had forced her team to carry out a “very challenging reprofiling programme” to the affordable housing plan.

All of the major housing projects, including the Knab and North Staneyhill, which are expected to deliver hundreds of new homes, will have to adapt to the constrained budgets.

Plans for housing at Moorfield in Brae have been completely removed from the programme.

Shetland West councillor Liz Peterson said the removal of the project seemed “unfair” when others were simply being reprofiled.

Mrs Jamieson said the Moorfield development was a Hjaltland Housing Association project.

She said the plans remained as part of a “shadow programme” of housing, which could be delivered if there are changes to funding in the future.

Lerwick North and Bressay councillor Stephen Leask said he hoped the funding situation would improve.

He called for the £3.5bn provided by Westminster to the Scottish government to be prioritised for housebuilding, which he said was “vital”.

“They have to get their priorities right this time, the Scottish government, rather than looking to their usual vanity projects,” he added.