Increasing funding for affordable housing

New bonds issued to support delivery of homes

A £22 million investment has been made into a scheme to increase investment in affordable homes and deliver more housing.

As part of Scotland’s Charitable Bond Programme, the Scottish Government has provided funding to issue two new bonds via finance intermediary Allia to housing providers Link and Cairn Housing Association to provide support for more than 150 new homes.

The programme, which has been running since 2014, provides loans to social landlords to construct new affordable homes, with the interest being reinvested by the Scottish Government into the affordable housing budget to support more homes for social rent.

This latest extension will see the total number of bonds issued increased to 40 and a total investment of more than £482 million.

Housing Minister Paul McLennan said: “Tackling the housing emergency requires bold thinking and investment in Charitable Bonds is another tool we can use to increase investment in our affordable housing budget while also allowing social landlords to access vital funding to build new homes.

“This has been a successful model in the past but is reliant on Financial Transaction funding from the UK Government. This funding, which is vital in housebuilding, has been cut by 62% since 2022.

“While we are demonstrating what we can do with the devolved powers and levers we have, it is vital that the UK Government reverses that cut so we can increase investment in the affordable housebuilding sector.

“We have a strong track record in affordable housing with 133,000 homes delivered since 2007, 93,000 of which are for social rent. However, tackling the housing emergency requires joint working from the Scottish and UK Governments and local authorities.”

Peter Freer Director of Debt Capital Markets and Head of Allia C&C’s Scottish Office said: “These two bond issues demonstrate the ongoing success of the Charitable Bond programme.

“With the Scottish Government’s investment in the bonds, Allia has been able to provide Link with additional funding to support its significant development programme and make our first loan to Cairn Housing Association.

“Both organisations are providing much-needed new affordable homes, and we look forward to continuing our work with the Scottish Government to create more positive impact across Scotland.”

The charitable bonds programme was created in response to demand from housing associations for better access to appropriate finance.  It provides unsecured loans for up to 15 years. Charitable bonds are an ethical investment product where the margin usually paid as interest to the bond holder, tax, or profit to shareholders, is released as grant funding.

  • Link – bond value of £16,006,385
  • Cairn Housing Association – bond value of £6,019,085

18,000 flu-related deaths in past two winters as jab uptake falls

UKHSA with DHSC and NHS to launch Get Winter Strong campaign to remind those at risk to get their vaccinations to fight off the onslaught of winter viruses

Latest UK Health Security Agency (UKHSA) data shows that over the past 2 winters (October to May, 2022 to 2023 and 2023 to 2024) at least 18,000 deaths were associated with flu, despite last winter being a relatively mild flu season.

While pandemic restrictions and social behaviours saw flu levels fall dramatically for a few years, these latest mortality figures are a stark reminder that flu is a deadly virus, particularly for older people and other groups at greatest risk.

Of real concern is the drop in the flu vaccine uptake rates last winter across all eligibility groups in England compared with the previous year (1).

While uptake in older people last year remained high, only 4 in 10 (41%) people with long-term health conditions, just over 4 in 10 (44%) 2- and 3-year-olds, and just 1 in 3 pregnant women received the flu vaccine.

Evidence shows the significant impact from last year’s flu vaccine with a 30% reduction in the number of those aged 65 and over being hospitalised and a 74% reduction in those between 2 and 17 years of age.

In the same two-year winter period the estimated number of deaths associated with COVID-19 was just over 19,500.

To help reduce the impact of winter viruses on those most at risk, as well as ease NHS winter pressures, UKHSA – with Department for Health and Social Care and NHS England – is set to launch a scaled-up Get Winter Strong campaign on the 7 October.

The campaign will urge those eligible to get their flu and COVID-19 vaccination when invited, ahead of winter, targeting those at greatest risk and for the first time will encourage pregnant women to also get their respiratory syncytial virus (RSV) and whooping cough vaccination.

Last year saw a sudden increase in the number of people having to be hospitalised, due to a flu peak in the week leading up to Christmas and then again at the end of January.

Pregnant women and older people aged 75 to 79 are also eligible for a RSV vaccination for the first time this year, with the maternal vaccine providing strong protection for newborns in their first few months, when they are most at risk of severe illness from RSV.

Dr Gayatri Amirthalingam, UKHSA Deputy Director of Immunisation: “As winter approaches we see many dangerous viruses circulating in our communities including flu, which tragically can kill thousands of people every year. Getting vaccinated ahead of winter is by far your best defence.

“If you’re pregnant or have certain long-term health conditions, you are at greater risk of getting seriously ill. Older people and young infants with flu are also much more likely to get hospitalised.

“So if you or your child are offered the flu, COVID-19 or RSV vaccines, don’t delay in getting them. Please speak to your nurse or doctor if you have any concerns.”

Maryam Sheiakh, a mother from Manchester, recounts the fear and anxiety she went through 2 years ago, when her then 4-year-old daughter, Saffy, spent more than a week at Royal Manchester Children’s Hospital after being admitted with flu, suffering with a severe cough and high temperature.

She was transferred to a High Dependency Unit as she was struggling to breathe and needed oxygen.

Maryam said: “I was seriously concerned we might lose Saffy. I honestly thought she might die from this. I was so distraught watching her struggling to breathe day after day, worried about her breathing difficulties and getting oxygen to the brain – would she be the same little girl before she got ill?

Thanks to the NHS staff, Saffy made a full recovery and, now aged 6, is thriving. Maryam, a nursery teacher, is now urging all parents to vaccinate their children to ensure they have the best protection against flu: “Just go and get it, don’t take the risk. No parent wants to watch their child suffer like we did with Saffy.

As of last week, millions of eligible people in England can now book their flu and COVID-19 vaccines through the NHS, with appointments starting from 3 October. For their RSV jab, pregnant women and older adults should speak to their maternity service or GP practice to arrange it, as the NHS rolls out additional protection for those most at risk ahead of winter.

Steve Russell, NHS National Director for Vaccinations and Screening: “Today’s data showing there were almost 20,000 deaths associated to flu over the past 2 winters is a shocking reminder that this is a seriously dangerous virus, and I urge those who are eligible to book their vaccine appointment as soon as they can as it is our best way of protecting those who are vulnerable as winter approaches.

“Thanks to the hard work of our NHS staff, life-saving flu, COVID-19 and RSV vaccines are being rolled out across the country in places that are as convenient as possible for people who need them. Flu and COVID-19 jab appointments are now available to book via the NHS website, the NHS App, or by calling 119 for free – making it as easy as possible for people to get vaccinated.”

Minister for Public Health and Prevention, Andrew Gwynne said: “I encourage everyone who is eligible to get their flu, COVID-19 and RSV vaccinations as soon as possible. They are without doubt the best way to protect yourself from these viruses that can cause serious harm.

Every year the World Health Organization recommends which strains should be included in the flu vaccine, with the UKHSA contributing to this work. Vaccines are then developed to help fight off the types of flu viruses expected to be circulating in the coming season. As the viruses can change every year, and protection from the vaccine reduces over time, it is important those eligible get a vaccine every year.

The Get Winter Strong campaign will run for 10 weeks and will appear on broadcast TV, on demand and community TV, as well as radio channels, outdoor poster sites across England and on social media channels.

AND IN SCOTLAND …

💉 Vaccination will be offered to those at high risk of serious illness from flu and COVID-19. If you’re eligible, you’ll be contacted with information about your appointment.

For more information about the vaccine and eligibility, visit:

https://www.nhsinform.scot/wintervaccines

#WinterVaccinesScot

Alcohol: 15p rise in Minimum Unit Price

The minimum price per unit of alcohol will increase by 15 pence from today.

MSPs previously voted to continue the public health measure which had been scheduled to end automatically on 30 April as part of a ‘sunset clause’ when Minimum Unit Pricing (MUP) legislation was introduced in 2018.

They also voted to introduce a price increase, with a rise to 65p per unit chosen as the Scottish Government seeks to increase the positive effects of the policy and to take account of inflation.

Health Secretary Neil Gray said: “Research commended by internationally-renowned public health experts estimated that our world-leading policy has saved hundreds of lives, likely averted hundreds of alcohol-attributable hospital admissions and contributed to reducing health inequalities.

“Experts wrote to The Lancet, describing Public Health Scotland’s evaluation of minimum unit pricing as ‘high-quality’ and ‘comprehensive’, and expressing confidence that there are several hundred people with low income in Scotland who are alive today as a result of this policy.

“However, the Scottish Government is determined to do all it can to reduce alcohol-related harm and as part of that, I am working to ensure people with problematic alcohol use receive the same quality of care and support as those dealing with problematic drugs use.

“We have also made a record £112 million available to Alcohol and Drug Partnerships to deliver or commission treatment and support services locally, as well as investing £100 million in residential rehabilitation.

“I have also asked that Public Health Scotland is commissioned to review evidence and options for reducing exposure to alcohol marketing.”

Councils Withdraw Support for National Care Service Proposals

Council Leaders have withdrawn support for the Scottish Government’s revised National Care Service Bill.

The Bill is currently being considered by the Scottish Parliament.

Though continuing to back key areas of reform, including enhanced support for unpaid carers, care home visitation rights and efforts to improve the experience of the social work and social care workforce, Council Leaders have expressed concern that the amended Bill currently does not reflect a model which Local Government can support.

The decision of Local Government Leaders today comes as several organisations
have expressed doubt on the legislative approach adopted by Scottish Government, including those working across the care sector. Experts have also questioned the evidence for including, within the National Care Service, services which support children and young people.

Commenting, COSLA’s Health & Social Care Spokesperson, Councillor Paul Kelly said: “Local Government cannot support the amended National Care Service Bill brought forward by Scottish Government.

“Local Government has been committed to working in partnership with the Scottish Government to develop proposals to deliver a National Care Service, but unfortunately the revised legislation does not effectively represent that partnership.

“Local Government is committed to continuing our engagement with key areas of reform which can deliver improved outcomes for people, unpaid carers and our workforce. We cannot, however, offer our support for the legislation brought forward at this stage”

“It is important that the views of people accessing, working in and planning front-line support services are listened to, both with regards to the NCS legislation and also the improvements needed to overcome the sustained financial and workforce pressures being experienced across Scotland.”

The National Care Service Bill was introduced to the Scottish Parliament on June 20th 2022, and allows for the transfer of a range of social care, social work and community health functions from local authorities to a new centralised body under the direction of Scottish Ministers.

On July 12 2023, Local Government and Scottish Government announced a shared accountability partnership for delivering the National Care Service in an alternative way, with enhanced national strategic direction through the creation of a national NCS Board, but with a continued role for local decision-making and Local Government.

Parliament’s Health Social Care and Sport Committee has sought views on the revised National Care Service Bill. Responses include those from UNISONChildren and Young People’s Commissioner Scotland,  Social Work ScotlandThe Promise Scotland. COSLA’s Health and Social Care Spokesperson wrote to Parliament’s Health, Social Care and Sport Committee on 17th September 2024, accompanying COSLA’s full evidence submission on the draft, revised NCS Bill.

Improving the lives of Scotland’s Gypsy/Travellers

Plan to tackle discrimination and social exclusion

Improved access to housing, education and health services and tackling discrimination are at the heart of a new Gypsy/Traveller Action Plan agreed between the Scottish Government and COSLA.

The voices of Gypsy/Travellers have helped shape the Plan, which acknowledges improvements in many of these areas, but recognises further progress needs to be made.  

The Scottish Government and COSLA will work with stakeholders to take forward measures in the Plan.

Key actions in the plan include:

  • Supporting Local Authorities to provide more and better accommodation, by taking steps for funding to be accessed under the Affordable Housing Supply Programme from 2026-27, and ensuring planners understand the needs of Gypsy/Traveller communities
  • Measures to remove barriers to education and improve educational outcomes for Gypsy/Traveller children and young people
  • Improving Gypsy/Travellers’ access to and experience of healthcare
  • Working to remove barriers to accessing benefits and build understanding among employers of the inequalities faced by Gypsy/Travellers, with practical tools to support recruitment and retention.
  • Challenging prejudice and discrimination and helping communities to influence decision-making

Equalities Minister Kaukab Stewart said: “Improving the lives of Scotland’s Gypsy/Traveller communities is a significant human rights commitment and is crucial in helping us deliver the fairer Scotland we want to see.

“The voices of Gypsy/Travellers across Scotland are at the centre of this second national joint action plan, and it is a testimony to the collaborative work of national and local government, third sector organisations, and most of all, the determination of Gypsy/Travellers to ensure better futures for their communities.

“We know current initiatives are having a positive impact on the lives of Gypsy/Traveller communities across Scotland, like the Gypsy/Traveller Accommodation Fund and the success of the Community Health Worker project in overcoming barriers to accessing health and other statutory services.

“However, there is still work to do. Through the actions in this plan we will build on the successes we have had to date and make further progress in many areas such as accommodation, health, education and combating discrimination.”

Improving the Lives of Scotland’s Gypsy/Travellers Action Plan 2024-2026

Scottish Government investing £100 million in mid-market rent housing

Supporting the delivery of 2,800 homes

The construction of 2,800 mid-market rent homes will be supported by £100 million of investment from the Scottish Government.

As announced as part of the 2024-25 Programme for Government, funding will be used alongside institutional investment – such as pension funds – to grow to at least £500 million.

This commitment forms part of the Government’s approach to leverage in more private investment to deliver housing, making public funds go further.

It will build on the success of the Thriving Investments model which has grown an initial £47.5 million investment from the Scottish Government to £222.5 million to deliver up to 1,200 mid-market homes across Scotland.

Mid-market rent is a type of affordable housing aimed at assisting households on low to moderate incomes to access affordable rented accommodation and helps those who have difficulty accessing social rented housing, buying their own home or renting privately.

Housing Minister Paul McLennan said: “Tackling the housing emergency requires a collective effort and bold decisions. We already have a strong track record in housebuilding in Scotland and this commitment will ensure public funds are used more efficiently.

“Since 2007, we have supported the delivery of more than 133,000 affordable homes, including more than 94,000 social rented homes. However, we know we can do more to tackle the housing emergency and encouraging more private investment into the sector is one key aspect of that.

“This new model will encourage more private investment into the mid-market sector that we know is willing and able to invest and it will deliver affordable homes that people need.”

  • Thriving Investments, (formerly Places for People Capital) was the successful bidder to the MMR Invitation launched in February 2016 to support the continued expansion of MMR in Scotland. A £47.5m loan agreement between SG and PfP was agreed in June 2018. Since then they have grown their fund to £222.5m.
  • Thriving Investments has delivered 736 affordable homes with an additional 335 properties due for completion by early 2025. It is anticipated that the fund will deliver around 1,200 MMR homes across Scotland.
  • Scottish Government will commission a fund manager to deliver the new fund.

Making Scotland a global green finance hub

Taskforce identifies four areas for action

Deputy First Minister Kate Forbes will collaborate with financial institutions to ensure Scotland becomes a global centre for green and sustainable finance and investment. 

A new report from the Scottish Taskforce for Green and Sustainable Financial Services makes 31 recommendations on how the public and private sectors can encourage and fund green investments and tackle the climate emergency.

It stresses the Scottish finance industry is particularly well placed to reap “profound benefits” from becoming a global hub and identifies four areas for action – policy, promotion, investment and skills.

Suggested initiatives include:

  • work to ensure Edinburgh and Glasgow sustain and improve their rankings in the Global Green Finance Index
  • new initiatives to attract more financial institutions to build their sustainable businesses in Scotland
  • collaboration across sectors and academia to improve the skills of Scotland’s workforce in sustainable finance

Deputy First Minister Kate Forbes, who addressed the Ethical Finance Global Summit in Edinburgh yesterday , welcomed the findings. Ms Forbes said: “This report is a decisive action plan as we progress towards making Scotland the natural home for green and sustainable finance.

“The financial services sector is key to delivering the benefits of the transition to net zero and we will use this route map to work together and ensure that Scotland – one of the world’s oldest financial centres – is able to maximise the opportunities ahead of us.

“This report, complementing our Green Industrial Strategy and the action we are taking such as developing a series of investment opportunities and launching an online investment portal in 2025, will make Scotland more attractive for investment.”

Taskforce Chair David Pitt-Watson said: “Climate may be the greatest challenge facing humankind. Addressing it will require a huge investment and the services of the finance industry.

“Finance is a jewel in Scotland’s industrial crown. So not only should there be many opportunities for green investment in Scotland, from wind to housing, there is also a huge opportunity for its financial services industry to serve the world.

“The Taskforce has already stimulated a considerable amount of action. And there is so much more to do. This report is a strategy for Scottish finance to play its proper role in addressing the climate challenge.”

Chief Executive of Scottish Financial Enterprise (SFE) Sandy Begbie said: “The work of the taskforce is a great example of collaboration between government and industry to enhance Scotland’s reputation as a global green and sustainable finance centre.  

“There are significant recommendations in the report and I am pleased that today marks the start of a formal partnership between the Global Ethical Finance Initiative (GEFI) and SFE to take them forward. GEFI will leverage its considerable global footprint while SFE will use its leadership position here in Scotland and our key relationships in London.”

The Scottish Taskforce for Green and Sustainable Financial Services report.

Ian Murray comments on Scotland’s latest GDP figures

Scotland’s onshore GDP grew by 0.3% in July 2024 according to statistics announced by the Chief Statistician yesterday. This follows no growth in June 2024 (revised up from -0.3%).

In the three months to July, GDP is estimated to have grown by 0.3% compared to the previous three month period. This indicates a slight decrease in growth relative to the increase of 0.6% in 2024 Quarter 2 (April to June).

The two industries which made the biggest contribution to overall GDP growth in July were Manufacturing and Information and Communications Services, both of which contributed 0.1 percentage points of growth to headline GDP.

The monthly statistical publication and data is available from the Scottish Government’s website.

Building Scotland’s climate resilience

Plan to help communities understand how climate change impacts their lives

Communities and businesses across Scotland will be given support and tools to help tackle the unavoidable impacts of climate change as part of the Scottish Government’s new National Adaptation Plan.

The Scottish National Adaptation Plan 2024-2029 (SNAP3) sets out a comprehensive suite of more than 200 actions and proposals for managing the current and future impacts of climate change in Scotland.

Climate change means Scotland will experience more extreme weather. Flooding, water scarcity and hot weather can damage our environment, disrupt public transport and affect our supply of foods, vital goods and services. This means that households, communities, businesses and organisations across Scotland are having to consider the impacts of climate change more than ever. 

It includes how sectors including agriculture, transport and health as well as businesses and communities will prepare for more extreme weather events, such as flooding, water scarcity and extreme periods of heat.

These include:

  • £5.5 million of funding this year to complete a national network of Community Climate Action Hubs to drive locally-led climate action across Scotland
  • investing £400million investment to Scotland’s railway infrastructure to reduce weather-related disruption
  • facilitating peer-to-peer support to local governments and public services to prepare for the impacts of climate change for local populations
  • providing advice and support to businesses on how they can future proof their workplaces through practical check-lists on how to prepare for the impacts of climate change
  • ensuring the NHS Scotland estate is prepared and equipped to deal with extreme heat and flooding

Launching the plan at a visit to the Restoring the River Leven project, First Minister John Swinney said: “While we must ensure Scotland continues to play its part in addressing the causes of climate change, we must also be ready to deal with the impacts that are already locked in giving us wetter winters, drier summers and more weather-related disruption.

“Our new Adaptation Plan is our most comprehensive response to protecting people’s lives and livelihoods against the risks of climate change – with over 200 actions to build climate resilience in our communities, businesses, public services and natural environment. 

“I am proud to lead a Scotland that is driving forward the race to net zero, whilst ensuring that our country is ready for the impacts of climate change that we are already experiencing. This can be demonstrated through the Leven River Restoration Project, which has adapted the local landscape to help reduce the amount of flooding in the area, whilst restoring and encouraging wildlife and nature to flourish. It is a fantastic example of how collaborative working can use nature to adapt to the challenges we face at the same time as delivering benefit for the local community.” 

Nicole Paterson, Chief Executive of the Scottish Environment protection Agency (SEPA), said: “Scotland’s natural environment is globally renowned and our water environment, as we can see in Leven today, is central to our environmental, economic and social success. Scotland’s water quality is at its highest level ever, with more than 87% of our water environment achieving good or high classification for water quality, with an ambition to go further.

“Our climate is already changing and as Scotland’s environment agency, we’re at the forefront of working with partners to respond and adapt. The Water Environment Fund, including The Leven Project, is a very visible story for change and a great example of how public, private and community sector partners can successfully collaborate to improve water environments, boost flood resilience and deliver community benefits.

“In Scotland’s Climate Week, it’s fitting that we hear directly from young people and community partner’s who’ve worked so hard locally and who’s future depends on the work that together we do today.”

Fife Council Leader Councillor David Ross said: “”Fife Council welcomes the Scottish Government’s new Climate Change Adaptation Plan, which marks an important step forward in the collective fight against climate change.

“Much has changed since Fife Council declared a Climate Emergency in 2019 and, although we have made significant progress on a number of fronts, we are committed to helping our communities prepare for, and respond to, the effects of climate change.

“The First Minister’s visit to the Restoring the River Leven project highlights the remarkable progress that can be achieved through strong partnership working, in this instance between Fife Council, SEPA, Fife Coast and Countryside Trust and local communities.

“This close collaboration has also led to – and will lead to – additional benefits through the Levenmouth Connectivity Project, the Active Travel Network and River Park Routes as well as The River Park Project that sit alongside the restoration project as part of the wider Leven Programme.

“Fife Council remains fully committed to leading the way in tackling climate change and we are proud to be part of initiatives that not only restore our natural environment but also build resilience for the future.”

Jeremy Harris, CEO at Fife Coast and Countryside Trust, said: “This project to restore the River Leven is a working example of different organisations coming together to deliver something that directly contributes to the outcomes laid out in the new Scottish National Adaptation Plan.

“The carefully considered interventions already under way will return the river to its more natural flowing state ensuring that nature connects through the Leven catchment and delivers direct benefits to the local communities.

“Improved infrastructure with the river at its centre will serve the surrounding communities and enrich the lives of those who make use of it. At Fife Coast and Countryside Trust our mission is to connect environment and people and this river restoration project, running through the heart of Levenmouth, is a wonderful example of how to do just that. I look forward to seeing the natural world and local communities flourish thanks to this work for years to come.”

Scottish National Adaptation Plan 2024-2029 – gov.scot (www.gov.scot)

Chancellor urged to deliver Budget of ‘investment and opportunity’

The UK Autumn Budget should focus on “investment and opportunity”, with more funding for public services, infrastructure and measures to eradicate child poverty, says Scotland’s Finance Secretary Shona Robison.

The Finance Secretary pledged to work with the UK Government and devolved administrations to ensure the Autumn Budget on October 30 “works for all four nations and delivers the change that people need”.

She called for the Chancellor to:

  • change the rules around borrowing to allow for greater investment in public infrastructure and services
  • reverse the forecast cut to capital funding, enabling the Scottish Government to invest more in hospitals, schools and transport
  • abolish the two child limit
  • deliver an Essentials Guarantee providing basic necessities for those who need them most
  • take greater steps towards delivering net zero, including by reforming motoring taxation
  • ensure any changes to tax take account of Scotland’s distinct and devolved tax system
https://twitter.com/i/status/1838594647918084161

Ms Robison said: “When I met with the Chancellor last month, we were in full agreement that we must put people first in all that we do. This principle must be at the heart of the decisions at the Autumn Budget.

“I want to work with the Chancellor, and the governments in Wales and Northern Ireland, to ensure that we have a Budget that works for all four nations and delivers the change that people need.

“It does not need to be another Budget of challenge and constraint. Instead it can be a Budget about investment and opportunity.

“We’re calling for measures to tackle child poverty and grow our economy. We’d like to see new rules around borrowing that support investment in public services. We want the UK Government to work hand in hand with the devolved administrations to provide the funding to deliver on our priorities.

“These are the choices I encourage the Chancellor to make.”

UK Autumn Budget: Letter to UK Government – gov.scot (www.gov.scot)