Tag: Cllr Mandy Watt

City Council: Taking big steps towards solving housing emergency

Councillor Mandy Watt, Depute Leader and Finance and Resources Convener, writes:

As Edinburgh continues to grow, one of the most pressing issues we face is the shortage of affordable housing.

We’ve seen demand for homes increase year after year, but at the same time housing costs keep rising. The city’s supply of social housing and the grant funding we receive from the Scottish Government to build new homes just hasn’t kept pace with demand.

We’re working to tackle this housing emergency by both building homes and buying them. With around 5,500 households in temporary accommodation every night because of homelessness, we’ve set a target to significantly improve housing and to source homes quickly, within the means that we have.

Edinburgh continues to be the lowest funded local authority in Scotland per head of population, and currently has fewer council-owned homes, so we need to do things differently from other councils.

In the same way that homebuyers need a mortgage, borrowing has become a vital and standard part of our financial planning when we buy or build homes. It’s the most straightforward way to overcome the shortfall in our grant funding.

At the same time, we’re also continuing to make considerable investment in net zero energy improvements to existing council homes and retrofitting buildings because we need them to be more sustainable and in good condition. This too is supported by capital borrowing.

While our debt levels remain prudent, and in line with our income and spend, our financial planning in this area is enabling us to fund the regeneration the city needs. We’re using this approach to build and extend schools for the next generation, restore important structures like the North Bridge and create new communities, like the Granton Waterfront.

We’ve also taken a big step this week towards finding a solution for the existing community on Dreghorn Estate, and it’s an excellent example of the power of well-managed borrowing.

At a special meeting of our Finance and Resources Committee on Monday, we agreed in principle to purchase 38 homes from the Ministry of Defence for £6.65 million, using a mix of funding from the Scottish Government housing grant together with long-term loans. Rental income, over the life of the properties, will cover the borrowing costs.

If agreed at Full Council, this purchase will secure the futures of families already living on the estate, and it will also provide us with an already thriving community for other council tenants to move into.

This is a huge step towards a positive outcome – a fantastic example of doing things differently to make sure we address our housing emergency – and I know residents are very grateful that this proposal has had so much support from councillors.

This article first appeared in the Edinburgh Evening News on 11 June 2025

Edinburgh’s Budget

Councillor Mandy Watt, Finance and Resources Convener, looks ahead to Council Budget day on Thursday 20 February:

Very soon, councillors will be making tough financial decisions to balance the council’s budget and set the rate at which Council Tax will be charged.

Given the increasing need for investment in infrastructure and services, we’ll have to raise Council Tax, parking charges and other fees to fund the delivery of services we all rely on. We are considering a recommended 8% rise in Council tax.

An 8% increase adds £9.65 per month to a band D property and would provide a total of £26 million across all bands for investment and service priorities.

A huge amount of work has already been done to consider options, with detailed proposals considered yesterday at a Special meeting of the Finance and Resources Committee. This has been informed by a huge consultation exercise with residents, and I want to thank all 3,260 people who took part.

We know from the consultation responses that people are aware of the financial challenges we face following years of underfunding, and many are open to a fair rise to Council Tax after last year’s freeze. Other councils are proposing increases of 10% and above, but we’re trying to keep Edinburgh’s increase lower because that’s what the majority of residents would prefer.

Residents also told us they’d like to see Councillors focus on several key priorities when setting this year’s budget. These include spending on education, investing in local facilities and upgrading our roads and pavements. We’ll use the money from an increase in Council Tax to protect and improve these services.

Investment proposals include continuing the extra £12.5 million for roads and pavements that was added last year, with a further £5 million for road safety, especially around schools. There will be five new schools and five extensions of existing schools and £26 million for special needs infrastructure. Fox Covert Joint Campus will be replaced and there’s £15 million for permanently replacing Blackhall Library.

The decision to recommend an 8% Council Tax increase was not taken lightly. Over the last decade cuts in core grant funding of over £400 million have been mitigated by council staff continually delivering more with less resources.

This year’s financial challenges are the UK Government’s increase in national insurance, costing the council £9 million and the Scottish Government changing the stability funding floor, taking away £6.3 million. Fortunately, the UK Government passed on £18million of pEPR (‘producer pays’) funding, which filled those gaps.

While we can expect a slightly better government grant this year following yesterday’s Scottish Parliament budget, the consequences of last year’s cuts to affordable housing remain clear to see.

Huge pressures on health and social care remain unaddressed by national governments. Yet again, Edinburgh is expected to be the lowest funded local authority in Scotland per head of population and we’ll still need to find best value efficiency savings to deal with service pressures of £40million and keep the books balanced this year.