The Joseph Rowntree Foundation (JRF) said good quality housing is needed to tackle poverty, adding that slicing a quarter off the fund to build affordable homes was “baffling” in light of Scotland’s housing crisis.

In the draft Scottish budget published in December, the affordable housing supply budget was cut by almost £200 million – more than one-quarter in real terms.

Yesterday, Holyrood’s finance committee heard evidence from groups as it scrutinised the budget.

Chris Birt, associate director for Scotland at the JRF, said the draft budget was “very disappointing” and the Scottish Government had made the wrong choices even considering the tight fiscal situation it faced.

Chris Birt giving evidence to the Scottish Parliament’s finance committee

He was asked about his written submission to the committee, which stated: “It is baffling that the affordable housing supply programme should be the victim of such a brutal cut as the one announced in the 2024-25 draft budget.

“To slice a quarter from the budget, in the face of the immediate and longer terms issues facing the housing sector in Scotland, is surely something that will have to be reversed during the Parliament’s scrutiny of the budget.

“If this is a hard choice as part of the budget it is the wrong choice.”

Housing minister Paul McLennan said: “Scotland is facing the most challenging budget settlement since devolution because of sustained high inflation and a UK Government autumn statement that failed to deliver the investment needed in Scotland’s public services.

“We will invest £556m in affordable housing next year and continue to work with partners to increase the delivery of more affordable homes, the majority of which will be for social rent.

“The UK Government did not inflation-proof its capital budget which has resulted in a 9.8% real terms cut in our capital funding between 2023/24 and 2027/28.

“We will bring forward to 2024 a review of our target to deliver 110,000 affordable homes by 2032 with a focus on the delivery timeline.”