Affordable Housing Supply Programme (AHSP) budget: FOI release

Information requested

Under FOISA, please provide, the a) modelling b) calculations c) briefing and d) any other supporting information that supported the Minister for Housing to say on Thursday, November 9, 2023 that "the £3.5 billion budget that we had set aside has effectively been cut in value by £700 million".

Response

On Thursday 9 November, during Portfolio Question Time at a Meeting of Parliament, relating to a question on Social Housing Waiting Lists (Support for Local Authorities) Mr McLennan responded to a point made by Mrs Downey MSP, as follows:

“I will make a number of points on that. When I go round speaking to local authorities and housing associations, I find that the biggest barrier to building more houses just now is inflation. Construction inflation has been around 15 to 20 per cent, which has meant that the £3.5 billion budget that we had set aside has effectively been cut in value by £700 million.”

Mr McLennan referenced this effective cut in value of £700 million based on the construction inflation figures being between 15 to 20 per cent; 20 per cent of £3.5 billion equating to £700 million. No further modelling or calculations were used to arrive at this figure.

Mr McLennan referenced the 15 to 20 per cent construction inflation based on feedback he had received from discussions with stakeholders including housing associations and construction companies. No briefing or other supporting information was supplied to the Minister in relation to these figures.

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