Included in the spending plans is a pledge to invest £768 million for the Affordable Housing Supply Programme in 2025-26, reversing the £200m cut which was first announced in 2023.  

However, Shelter Scotland director Alison Watson said it needs to be acknowledged that the funding is the same amount as in 2022. Since then, the number of people living in temporary homes has risen and the cost of living has skyrocketed.

As the budget passed its final parliamentary hurdle, Ms Watson said: “It is now vital that the Scottish Government urgently brings forward a Ministerial Statement to explain how its investment in housing and homelessness services will reduce the number of children in temporary accommodation by the end of this parliament.  

“Scotland’s parliament committed to delivering a Housing Emergency Action Plan and to tackle the levels of kids in temporary accommodation when it declared an emergency over nine months ago.  

“The government must explain to MSPs and the public how this additional investment will work to bring down the number of people trapped in temporary accommodation, end law-breaking by local authorities, and tackle the housing emergency.   

“It is scandalous that a record-breaking 10,360 children are trapped in, often unsuitable, temporary accommodation. It can have a harrowing impact on families, and everyone deserves to have somewhere safe, secure and permanent to call home.  

“The Scottish Government and local authorities need to work together and bring forward a targeted approach. If the Scottish Government are serious about ending child poverty, they need to tackle child homelessness. They now need to show us all how they plan to make that a reality.”

Propertymark said it welcomed the investment in affordable housing and money for the Heat in Buildings programme to help more people install clean heat and energy efficiency measures in their homes.

Timothy Douglas, head of policy and campaigns, added: “However, we do not agree with the Scottish Government’s decision, through the Budget process, to increase taxes when purchasing buy-to-let property from 6 per cent to 8 per cent. The Scottish Government’s Budget has failed to implement policies that can help meet the demand for private rented property and with Scotland’s landlord taxes now the highest in the UK, this will do nothing to tackle Scotland’s housing emergency and reduce rents for tenants.”

Also included in the 2025-26 Scottish Budget are £21.7 billion for health & social care and more than £15bn for local councils, alongside social security measures supporting an estimated two million people.

The Budget invests:

• £21.7bn in health and social care services, including almost £200m to cut waiting times and help reduce delayed discharge
• £6.9bn in social security, expected to support around two million people in 2025‑26
• £4.9bn in climate-positive investment
• more than £7bn for infrastructure
• more than £2bn for colleges, universities and the wider skills system
• an additional £25m to support the Grangemouth Industrial Cluster, taking total investment to almost £90m

Finance secretary Shona Robison said: “I am pleased that Parliament has approved the Scottish Government’s Budget – confirming plans to invest in public services, lift children out of poverty, act in the face of the climate emergency and support jobs and economic growth.

“This is a Budget by Scotland for Scotland. It includes record NHS investment, social security spending to put money in the pockets of low income families and action to effectively scrap the two-child benefit cap next year. We are delivering a universal winter heating payment for the elderly, providing record funding for local government and increasing investment in affordable housing.

“This Budget has been developed through effective engagement and negotiation across Parliament to build broad support. It is through this compromise that we are delivering spending plans that will most effectively strengthen services and support Scotland’s communities.”