Outlining his first PfG as first minister, John Swinney set out how the Scottish Government will deliver commitments that are “affordable, impactful and deliverable” and highlighted eradicating child poverty, building prosperity, improving public services and protecting the planet as his top priorities.

On housing, Mr Swinney pledged to invest nearly £600 million in affordable housing over the coming year, including an additional £40m to bring existing homes into affordable use.

“There will be a strong focus on working with partners to enable existing accommodation that is not currently in use to be made available as swiftly as possible to meet the need for housing – ensuring we take every step we can to boost the availability of housing as quickly as we possibly can,” he said.

The first minister added: “We will provide a further £100m to support the construction of around 2,800 mid-market rent homes. And in progressing our proposals for rent controls, we will introduce amendments at stage 2 of the Housing Bill to ensure that tenants have the protection they need and that Scotland is able to attract more investment to supplement the investment we are making through the public finances.”

In all, the Scottish Government plans to introduce 14 Bills over the course of the 2024-25 parliamentary year – alongside 12 Bills already before the Scottish Parliament – including:

• Adults with Incapacity Bill
• The annual Budget Bill
• Building Safety Levy Bill
• Climate Change (Emissions Reduction Targets) Bill
• Community Wealth Building Bill
• Criminal Justice Modernisation and Abusive Domestic Behaviour Reviews Bill
• Crofting Bill
• Heat in Buildings Bill
• Leases (Automatic continuation etc.) Bill
• Misogyny Bill
• Natural Environment Bill
• Post-School Education Reform Bill
• Prisoners Bill
• UEFA EURO 2028 Bill

The first minister said: “This Programme for Government will ensure that the people of Scotland have every opportunity to live well, thrive, and see promise in their future.

“This year’s commitments are affordable, impactful and deliverable. Together, they reflect my optimism that out of every challenge, we gain an invaluable opportunity to adjust our course, to interrogate our priorities and to renew our partnerships.

“I have been clear about the financial limitations surrounding this Programme for Government due to UK Government spending decisions. In the face of these significant challenges, it is critical that we direct available funding towards our four priorities – eradicating child poverty, building prosperity, improving our public services and protecting the planet.”

The sector responds

The Scottish Federation of Housing Associations (SFHA) warned that the Programme for Government falls short of what’s needed to tackle the country’s housing emergency and urged the Scottish Government to remove obstacles to Mid-Market Rent developments.

SFHA chief executive Sally Thomas said: “Whilst it’s welcome that the First Minister acknowledged the importance of housing, today’s Programme for Government does not go far enough in tackling Scotland’s deepening housing emergency.

“With nearly 10,000 children growing up in temporary accommodation, and the number of homes started by housing associations at the lowest level since the 1980s, we must now see action on funding for affordable rented housing in the Scottish Government Budget in December.

“We also welcome news that the Housing Bill will progress through Parliament, but we need immediate clarity on the status of rent controls for Mid-Market Rent (MMR) developments. MMR is an essential form of affordable rented housing which is delivered by housing associations; however, these much-needed homes would be put at risk by long-term rent controls and should therefore be exempt in order to increase supply.”

“We know the Scottish Government is facing deeply difficult financial constraints, but affordable rented housing is fundamental to all of the First Minister’s priorities, and must be protected. At SFHA, we are ready to work with government and other partners to achieve this”.

The Scottish Government has also been criticised after housing associations reported significant delays in receiving grant funding for aids and adaptations.

Sally Thomas added: “Delays in allocating funds have real consequences. Adaptations such as grab rails and wet rooms support tenants to live well in their homes, help keep people out of hospital and enable quicker and more efficient discharges from hospital: saving significant spending to the health service. The Scottish Government’s delay in allocating funds to housing associations for aids and adaptations is affecting all of this and causing profound uncertainty for social tenants.

“The Scottish Government must urgently release this funding to Scotland’s housing associations and co-operatives so they can meet the needs of their tenants and take pressure off the health system.”

Callum Chomczuk, Scotland national director of the Chartered Institute of Housing, said: “We are encouraged by the recognition of the priority for social and affordable housing in the Programme for Government and we welcome the announcement of new funding of £100m to support the development of mid-market rent housing. An additional 2,800 homes will play a key part in addressing our homelessness crisis.

“In addition, the acknowledgement that the rent control provisions in the Housing Bill must be amended so that the proposals retain investor confidence is a positive sign, and an issue the sector has been campaigning on since before the Bill was introduced. While we wait further details on whether that is applicable to individual landlords, institutional investors or both, we are encouraged by the Programme for Government announcement.

“We hope the focus on affordable and social housing in this Programme for Government will send a message about future spending priorities in the Scottish Government and its leadership with regards to the housing emergency.”

For Shelter Scotland, the proof of the first minister’s ambition to tackle the housing emergency will come in the budget later this year.

The charity said that delivering more social homes remains the only way to reduce the number of children stuck in temporary accommodation in Scotland.

Director Alison Watson said: “(Yesterday’s) Programme for Government acknowledged the reality of the housing emergency, and the urgent need to quickly deliver more social homes.

“Delivering more social homes remains the only way to reduce the number of children stuck in the homelessness system. Without those social homes, the first minister’s laudable ambition of ending child poverty will be impossible to achieve.

“The proof that there’s more than just words behind that ambition will come in the budget later this year; if the Scottish Government is serious about tackling the housing emergency then it needs to set a meaningful target for delivering social homes by the end of this parliament and reverse recent brutal cuts to the housing budget.”

Heat in Buildings Bill

In light of the inclusion of the Heat in Buildings Bill in the Programme for Government, the Existing Homes Alliance called for a firm commitment to the introduction of the Bill this year.

Gillian Campbell, communications and public affairs lead, said: “Scotland won’t be able to reach net zero without most households switching to clean heating, so we welcome the inclusion of a Heat in Buildings Bill in the Programme for Government. However, the fact remains that we’re well behind in comparison to other countries.

“We now need a firm commitment that the bill will be introduced this year. It must be designed to give industry confidence to invest in creating the jobs and skills needed to deliver a just transition to clean heating. That means clear timelines and standards, and it means working with the private and third sectors to create the right kind of advice and support so homeowners are helped on their journey to warm homes with clean heating.

“It is crucial that the Bill, when introduced, includes a backstop of 2033 for energy efficiency standards. Reducing energy demand by improving the energy efficiency of homes is essential for reducing household bills, improving comfort and making clean heating more affordable for more people.”

Scottish Land & Estates said the needs of rural Scotland must be placed front and centre by the Scottish Government as it seeks change to Scotland’s building heating standards.

As well as pledges on housing, the Scottish Government said it would bring forward a Natural Environment Bill to support the delivery of net zero and biodiversity goals as well as a Crofting Bill.

Sarah-Jane Laing, chief executive of Scottish Land & Estates, said: “Rented housing is vital to many of our rural economies, particularly when it comes to attracting workers to an area for tourism, farming, forestry and other seasonal sectors. If the Scottish Government fails to take this into account then it places these communities at real risk.

“We saw the debacle caused by measures to ban wood-burning stoves in new properties because the Scottish Government had not properly ‘rural proofed’ their policymaking and with the government also announcing a Heat in Buildings Bill, we hope the views of rural communities, organisations and businesses are properly taken into account this time.”

Rent controls

Ms Laing also urged the Scottish Government to recognise the “detrimental consequences” of rent controls.

She added: “Many landlords and tenants argued that rent controls would be hugely counterproductive when introduced in the form of a rent freeze in 2022, and this was borne out across large parts of Scotland as rental stock supply diminished. Between the start of 2022 and the end of 2023, across 18 local authorities with rural areas, 11 saw decreases in the number of properties available for rental.

“With the Scottish Government now seeking to move forward with rent caps, it needs to fully understand the further detrimental consequences this could have on rural rental provision before bringing forward the stage 2 amendments.”

For tenants’ union Living Rent, legislation on rent controls “can not come soon enough”.

Ruth Gilbert, national campaigns chair, said: “John Swinney’s recommitment to rent controls is a huge relief for the tens of thousands of Scottish tenants who are trapped by high rents and poor quality housing.

“In the midst of a national housing emergency, this government must listen to tenants and the majority of Scottish voters, and ignore landlord lobbyists. They need to work quickly to introduce strong, effective rent controls that bring rents down.

“We’ll be watching closely to ensure that no properties are made exempt at Stage 2 and ensure that the government does not water down rent controls’ progressive potential.

“This government also needs to reverse the cuts to the affordable housing budget and ensure that we are able to build affordable, secure housing for all.”

Poverty

The first minister’s commitment to tackling poverty was also welcomed but charities warned that too many families still do not have enough money to pay for essentials.

Citizens Advice Scotland’s spokesperson Emma Jackson said: “In a just and compassionate Scotland, none of us can be content with the fact that one in four children in Scotland are forced to endure the devastating impacts of poverty. It is right that the first minister committed to delivering coordinated and holistic family services that are easy to access and focus on prevention and early intervention. Across Scotland, the Citizens Advice network is already playing a key part in this work to maximise incomes in local communities.

“Every day our advisers work directly with families where meals are missed, the heating doesn’t get turned on and debts are rising. Families who do not have enough income. The pace and scale of action needed to stop the harm here is significant. While today’s announcement is something that many of us have been calling for, too many families still do not have enough money to pay for the essentials that we all need. Getting more money directly to those who need it is fundamental to tackling child poverty.”

Mary Glasgow, chief executive of Children 1st, said: “We welcome the Scottish Government’s commitment to tackling child poverty, but we are deeply concerned that the drastic cuts to public spending will throw many children and families already in crisis over the edge.

“The first minister’s recognition of whole family support is positive but lacks clarity and specific plans to make this a reality, with resource to match need. We know that at present vital family support services are being lost.

“With less money available we need to do things differently. Children are stuck on waiting lists for services that are already overwhelmed. They need help at an earlier stage to avoid even more costly interventions down the line.

“As a society, we are failing children and families. They cannot wait for change. They need investment and meaningful reforms and early support to keep them safe.”

Morgan Vine, head of policy and influencing at Independent Age, added: “In the context of tightening budgets it is vital we look for innovative ways to help the growing number of older people in poverty in Scotland. Now, more than ever, we need a comprehensive and coherent strategy to tackle the terrifying rate of poverty in later life. Without it, it is likely the 150,000 older people across the nation who are in financial hardship will continue to struggle to afford even a very basic quality of life.

“Poverty at any age is extremely damaging to both mental and physical wellbeing. Through our work across Scotland, we have spoken to older people affected who shared with us what the cost of living has been like. We heard from those using foodbanks, and others waiting until the cold became ‘unbearable’ before using the heating at night.

“This cannot continue. If the Scottish Government wants to make Scotland the best place in the world to grow old, it is essential they introduce a long-term strategy to address pensioner poverty. Older people on low income are facing a bleak winter, they urgently need to see action on the Scottish Government’s commitment to tackle poverty.”