Scottish Parliament, 22 November 2023

372 contributions from 54 members. The official report.

Point of Order

Annabelle Ewing (Scottish National Party, Cowdenbeath)

Good afternoon. The first item of business is—

Stephen Kerr (Conservative, Central Scotland)

On a point of order, Deputy Presiding Officer.

Members will be aware of the news that broke this morning, as announced by Ineos and PetroChina, that they intend to close the oil refinery at Grangemouth by the spring of 2025. Members will also be aware that that would end Scotland’s capability to refine petrol and diesel at scale and increase our reliance on facilities south of the border or, indeed, abroad.

Let us not forget that the Grangemouth plant makes up 4 per cent of the entire Scottish gross domestic product. Thousands of jobs are reliant on the plant, and the entire supply of petrol and diesel—

The Deputy Presiding Officer

Mr Kerr, could you please get to the bit that engages the standing orders of the Parliament?

Stephen Kerr (Conservative, Central Scotland)

I am coming to that very point, Deputy Presiding Officer, because this is a very important issue—

The Deputy Presiding Officer

Mr Kerr, please resume your seat for a second. I appreciate how important the issue is, but I am trying to ensure that the standing orders of this Parliament are respected. A point of order must trigger a standing order of the Parliament. I implore the member to please indicate further to which standing order the member is making the point of order.

Stephen Kerr (Conservative, Central Scotland)

I was just coming to that point. Thousands of people’s jobs are reliant on the plant. I am giving context.

The Deputy Presiding Officer

Mr Kerr, please resume your seat for a second. With all due respect, I understand very well the context. I am asking the member to indicate specifically what his point of order is.

Stephen Kerr (Conservative, Central Scotland)

My understanding of points of order is that the member has a number of minutes to explain what they are seeking guidance on—

The Deputy Presiding Officer

Mr Kerr, could you please indicate what you are seeking guidance on?

Stephen Kerr (Conservative, Central Scotland)

I am seeking guidance on the fact that we need a ministerial statement on this matter. I am asking you, as the Presiding Officer, and I am somewhat surprised about how my point of order is being dealt with, if I may say so, because—

The Deputy Presiding Officer

Mr Kerr, please resume your seat for a second. I will not take any implicit or other criticism of the chair. I understand that the member seems to be seeking a ministerial statement. I am quite happy to address that request. The member will know—

Stephen Kerr (Conservative, Central Scotland)

I was coming to that.

The Deputy Presiding Officer

If I could perhaps finish my comment. The member will appreciate very well the various ways in which matters can be raised in this Parliament. On the issue of a ministerial statement, I imagine that he would perhaps wish to discuss that matter with his party business manager, so that the party business manager can seek to raise the matter with the Parliamentary Bureau.

Stephen Kerr (Conservative, Central Scotland)

On a point of order, Deputy Presiding Officer.

The Deputy Presiding Officer

A

further point of order, Mr Kerr—[

Interruption

.]

Stephen Kerr (Conservative, Central Scotland)

It is all right for you all to sigh, but there are literally thousands of jobs—

The Deputy Presiding Officer

Mr Kerr, please address the point of order that you now wish to make.

Stephen Kerr (Conservative, Central Scotland)

Had I been allowed to make the point of order that I was making—

Members

It was not a point of order.

Stephen Kerr (Conservative, Central Scotland)

It

was a point of order. I remind members that there are literally thousands of people whose jobs are on the line—

The Deputy Presiding Officer

Mr Kerr, please resume your seat for a second.

Stephen Kerr (Conservative, Central Scotland)

I—

The Deputy Presiding Officer

Mr Kerr, please resume your seat for a second.

Mr Kerr has indicated that he is seeking a ministerial statement. I have indicated to Mr Kerr how that can be pursued. Mr Kerr wishes to raise a further point of order, which I am happy to hear, but I wish to be assured that it is a point of order that engages the standing orders of the Parliament. Thank you.

Stephen Kerr (Conservative, Central Scotland)

My simple point, Deputy Presiding Officer, is that my understanding of the standing orders is that I have a couple of minutes to explain the context for the point of order that I am raising. You allowed me very little time to make this important point of order. I repeat that, despite all the muttering from the Scottish National Party benches, this is a very important matter for my constituents, thousands of whose jobs and livelihoods are on the line, as is the whole economy of the area. Yet, I am granted a few seconds to make a point of order.

The Deputy Presiding Officer

Mr Kerr, it is now 14:04:37. What is the next point of—

Stephen Kerr (Conservative, Central Scotland)

I have tried—

The Deputy Presiding Officer

What is the next specific matter pertaining to the standing orders of this Parliament that the member, by pursuit of a point of order, wishes to invoke?

Stephen Kerr (Conservative, Central Scotland)

My point of order is as I have expressed it. I am making the point that, under the standing orders of this Parliament, a member is entitled to two or three minutes to explain the point of order—

The Deputy Presiding Officer

Well, Mr Kerr, I would point out that we are already—

Stephen Kerr (Conservative, Central Scotland)

—and I was not allowed that privilege.

The Deputy Presiding Officer

We are already at 14:05. [

Interruption

.] We are at 14:05. I think that there has been a good—[

Interruption

.] I think that there has been a good exploration of the issues that the member wishes to raise.

Stephen Kerr (Conservative, Central Scotland)

There has not been.

The Deputy Presiding Officer

The member’s point about seeking a ministerial statement has been noted, by everybody in the chamber, I am sure—

Stephen Kerr (Conservative, Central Scotland)

But not the why.

The Deputy Presiding Officer

—but, of course, the way in which the member can best pursue that—

Stephen Kerr (Conservative, Central Scotland)

Not the why.

The Deputy Presiding Officer

I really would not appreciate the member continuing—

Stephen Kerr (Conservative, Central Scotland)

Not the why.

The Deputy Presiding Officer

Mr Kerr, please desist from challenging the authority of the chair of this Parliament. Please have the courtesy to do that.

As I was saying—[

Interruption

.] As I was saying to Mr Kerr, who continues from a sedentary position to challenge the authority of the chair, and who is, in my view, also being extremely rude, the member knows well how a matter can be pursued. That is through his party’s business manager. I suggest that he may wish now to have that conversation.

Living Wage (Support for Rural Businesses)

Emma Harper (Scottish National Party, South Scotland)

1. To ask the Scottish Government how it is supporting businesses in rural areas to become accredited living wage employers. (S6O-02749)

Neil Gray (Scottish National Party, Airdrie and Shotts)

In the absence of legislative powers to mandate a living wage, which are reserved to Westminster, we fund the living wage Scotland team at the Poverty Alliance to deliver living wage employer accreditations and to promote the benefits of a real living wage to businesses, rural and urban, across Scotland. As a result of that effort, Scotland now has more than 3,400 living wage accredited employers situated across all 32 local authority areas and covering a range of industries and sectors.

Scotland leads the United Kingdom with 91 per cent of employees earning at least the real living wage and, proportionately, it has five times more accredited employers than the rest of the UK.

Emma Harper (Scottish National Party, South Scotland)

Rural and small businesses that I regularly visit across Dumfries and Galloway and the Scottish Borders report that they would like to become accredited living wage employers. However, it is often the case that, due to the nature of rural employment, such as seasonal working, small and changing workforces and the costs associated with becoming accredited, it can be difficult for small and medium-sized rural businesses to do so. Will the cabinet secretary provide any further information about the steps that can be taken, such as through enterprise agencies, to support rural businesses to deliver fair work practices such as the real living wage? I remind members that I am a living wage employer.

Neil Gray (Scottish National Party, Airdrie and Shotts)

I thank Emma Harper not just for her question but for her work in this area. We appreciate the challenges that many employers have faced due to the pandemic, Brexit and the rising cost of doing business, and that some sectors and regions, particularly in rural areas, continue to face difficulties.

The Scottish Government’s fair work action plan commits to supporting employers

“to utilise the resources ... available to embed Fair Work in their organisations.”

We have made fair work first guidance available and have developed a fair work employer support tool with our enterprise and skills agencies. I pay tribute to the work of South of Scotland Enterprise and its partners to encourage the uptake of the real living wage in Emma Harper’s region.

We will continue to work with partners to join up provision of advice and support for employers through a central fair work resource, making it as simple and efficient as possible to use.

Mercedes Villalba (Labour, North East Scotland)

Does the Scottish Government know how many of Scotland’s 1,125 rural estates are accredited living wage employers? Will the cabinet secretary join me in calling on any estates that are not yet accredited to register today?

Neil Gray (Scottish National Party, Airdrie and Shotts)

Yes, I think that anyone who has the ability to make that choice and move to being a real living wage employer will see the benefits in lower attrition rates and greater productivity in their business. Of course, regardless of the sector, I would encourage employers across Scotland to become real living wage employers.

Beatrice Wishart (Liberal Democrat, Shetland Islands)

Can the Scottish Government outline any assessment that it has made of the growing number of business that are accredited living wage employers, of the impact on the horticultural sector and of the future of the Scottish agricultural wages board?

Neil Gray (Scottish National Party, Airdrie and Shotts)

This area is under active consideration across Government and different portfolios. We recognise that there are challenges in different elements of the economy, and the agricultural sector is one of those. We are looking to do all that we can to provide support to employers, regardless of sector, to ensure that the benefits of being a real living wage employer can be realised.

At the same time, we understand some of the challenges in those areas, and we would be happy to discuss them further with Beatrice Wishart.

Annabelle Ewing (Scottish National Party, Cowdenbeath)

Question 2 has not been lodged.

Economic Growth

Paul O'Kane (Labour, West Scotland)

3. To ask the Scottish Government what action it is taking to address the reportedly stagnant level of economic growth. (S6O-02751)

Neil Gray (Scottish National Party, Airdrie and Shotts)

The cost of living crisis continues to impact the ability of households and businesses to spend, which, in turn, affects the wider economy. Despite those extremely challenging economic conditions, the Scottish economy remains resilient.

Our national strategy for economic transformation contains bold and ambitious actions that will deliver fairer, greener prosperity for Scotland, making our economy more sustainable and resilient in the longer term. Similarly, our new deal for business is about creating an environment that supports a wellbeing economy, maximises the opportunities of the green economy and helps businesses to thrive.

Although we remain tied to a failed United Kingdom economic model and do not hold all the financial levers that are needed, we continue to use all the powers that we have to grow a fair, green and growing wellbeing economy that meets the needs and aspirations of the people of Scotland.

Paul O'Kane (Labour, West Scotland)

The cabinet secretary spoke about resilience. The news from Grangemouth this morning is deeply concerning. It is a huge blow to those communities, as it affects not just the thousands of jobs at the site but also jobs in the supply chain.

There are significant issues in Scotland with stagnant growth, and less well-off areas are growing more slowly than better-off areas. The news will have a significant impact on not only the regional economy but our national economy.

When was the Government made aware of the announcement by Petroineos? What discussions has the Government had about it? Crucially, what action is the Government taking to protect and safeguard jobs, move to a just transition and keep the Parliament informed?

Neil Gray (Scottish National Party, Airdrie and Shotts)

I will, of course, endeavour to keep Parliament informed of updates on discussions with Petroineos. The decision that has been taken by the company is a commercial one. We were informed last night that it intended to take that decision, and there was no timescale on it. We were given reassurances that Petroineos had fully consulted the workforce before going public.

As Mr O’Kane would expect, I am endeavouring to have further conversations with Petroineos in short order, to understand how this will operate. We have been given assurances that the changes that Petroineos is looking to make at the Grangemouth site are about ensuring a sustainable future for industrial work at the site and ensuring that there is a long-term future for jobs and investment in the area. That is what we would expect, and I am incredibly exercised about ensuring that that can take place.

I will continue to liaise not only with Petroineos but with the UK Government, which has a locus here, and I will update Parliament in due course.

The Deputy Presiding Officer

I have received requests for supplementaries from four members. Given the issues that could be raised in relation to this question, I will seek to take all four, but I hope to have brief questions and answers.

Colin Beattie (Scottish National Party, Midlothian North and Musselburgh)

There is no denying the economic impact of Brexit. However, as the ever-increasing damage of leaving the European Union continues to mount, it seems that Labour and the Tories are keeping their heads in the sand.

Can the cabinet secretary provide any update regarding the latest assessment that the Scottish Government has made of the impacts of Brexit on economic growth? Will he join me in calling on Opposition members to wake up to the reality of those impacts and to join us in standing up for Scotland’s place in Europe?

Neil Gray (Scottish National Party, Airdrie and Shotts)

Yes, I can. I appreciate that question from Colin Beattie.

Brexit has caused economic devastation to Scotland and the UK. The UK’s inflation rate in October 2023 is still higher than the rates in France and Germany. In a recent survey of small and medium-sized businesses in the UK, most respondents said that Brexit had affected them negatively. In March, the Office for Budget Responsibility repeated its expectation that the UK’s gross domestic product will be 4 per cent lower in the long run due to Brexit. It is clear that the costs of Brexit outweigh any costs of UK membership of the European Union.

Joining the European Union as an independent nation would offer Scotland the chance to regain what has been lost because of Brexit.

Murdo Fraser (Conservative, Mid Scotland and Fife)

With 4 per cent of Scotland’s GDP dependent on the Grangemouth refinery, does the minister not see that the Government’s rhetoric towards the oil and gas sector—matched by the rhetoric from Keir Starmer’s Labour Party towards that sector—is not helping to support an essential part of the Scottish economy on which hundreds of jobs will depend?

Neil Gray (Scottish National Party, Airdrie and Shotts)

The decision is a commercial one that has been taken by Petroineos. The age of the site causes a challenge in terms of what is required for the future. My understanding of conversations that have been had, and from the conversations that I have had with Petroineos, is that the decision is about ensuring that there is a long-term future for the site, which includes ensuring that it moves to more sustainable operations.

As I said in response to Mr O’Kane, I will look to engage in further discussions with Petroineos. We will ensure that Mr Fraser and other members are updated on discussions not just with Petroineos but with the United Kingdom Government, which has a locus in the issue as well.

Willie Rennie (Liberal Democrat, North East Fife)

What is the point of having an economy secretary if he does not know what is happening to one of the major employers in this country more than 24 hours in advance of a decision? Surely he should be integrated into the company and understanding what is going on. If a just transition is to mean anything, we should have had a plan ages ago. Does he have a just transition plan for the plant? What is he going to do about it?

Neil Gray (Scottish National Party, Airdrie and Shotts)

Yes. Work has been on-going over a long period to engage with Petroineos and the Grangemouth site to ensure that there is a sustainable future for it, in exactly the ways that Mr Rennie describes. That is about ensuring that there can be a sustainable future to provide jobs and that there is continued industrial capacity at Grangemouth. We will continue to engage with Petroineos and the UK Government, which has a locus in the issue, and we will update Parliament in due course.

Kenneth Gibson (Scottish National Party, Cunninghame North)

Can the cabinet secretary advise members which economic levers that are currently reserved to Westminster would help to boost economic growth the most if they were devolved to this Parliament and which of those, if any, the Labour and Conservative parties have committed to devolving and would help to save Grangemouth?

Neil Gray (Scottish National Party, Airdrie and Shotts)

I appreciate that question from Kenny Gibson. The Scottish Government has consistently argued for the devolution of migration powers to the Scottish Parliament, which would help us to attract working-age people and their families, thereby ensuring that our businesses can access skills and people, and meeting the needs of the parts of Scotland that are most at risk of depopulation. The UK Government has blatantly ignored those calls on more than one occasion, despite the fact that the UK’s immigration system is not designed to meet the needs of Scotland and is having a damaging effect on our economy and communities, especially in rural areas.

We also continue to call on the UK Government to devolve employment powers to this Parliament so that we can introduce the real living wage and boost the rights of millions of workers across Scotland. I hope that the Labour Party supports those calls. However, with the full powers of an independent country, we would, of course, do much more.

Scottish National Investment Bank (Wellbeing Economy)

Douglas Lumsden (Conservative, North East Scotland)

4. To ask the Scottish Government what assurances it has received that the Scottish National Investment Bank is supporting its ambition to create a wellbeing economy, in light of there not being an advisory board in place. (S6O-02752)

Neil Gray (Scottish National Party, Airdrie and Shotts)

Now that the Scottish National Investment Bank is fully established, with a growing portfolio of investments, work is under way to establish the advisory group. We receive assurances on the bank’s support for a wellbeing economy through the fact that the missions that ministers set for the bank align closely with our wellbeing economy principles; the fact that the bank’s robust investment processes ensure that investments align to at least one mission; and the work of the bank to measure the benefits of its investments, information on which was published in the bank’s impact report. Senior officials and I also have regular meetings with the bank’s senior leadership team.

Douglas Lumsden (Conservative, North East Scotland)

The Scottish National Investment Bank has been in operation for three years now and, recently, serious allegations have been made against it. One is that the bank lent £7.5 million to a company that is run by the brother of a bank employee—a company that was loss making and whose accounts were overdue. It has also been reported that there was political pressure to invest £9 million in Circularity Scotland, most of which has now been lost.

I do not know whether those accusations are true, but I know that, if the advisory board was in place, as is required in law, we would have the assurance that things were in order. Does the cabinet secretary accept that it is vital that the advisory board is put in place as soon as possible?

Neil Gray (Scottish National Party, Airdrie and Shotts)

Yes, I do. We are looking to establish that, as I said in my answer to Mr Lumsden’s first question. In addition to bringing about the advisory group, as I also set out in that answer, I have regular meetings with the senior management. I most recently met the chair and chief executive on 2 November. My officials meet regularly to ensure that we have that oversight. The advisory group will be set up as soon as possible, now that the bank is fully operational.

Ash Denham (Alba, Edinburgh Eastern)

In light of recent reports that the Scottish National Investment Bank is investing in firms that are linked to personnel at the bank,

what work is the Scottish Government undertaking to improve transparency at the bank, avoid such conflicts of interest, and meet the high standards that are expected of a public entity?

Neil Gray (Scottish National Party, Airdrie and Shotts)

As I set out to Mr Lumsden, on the bank’s support for a wellbeing economy, we receive assurances that its work links to at least one of its missions at our regular meetings with the bank, at official and ministerial levels. The bank also has to publish an impact report. All its investments are made in a transparent way so that people can see them clearly.

Kevin Stewart (Scottish National Party, Aberdeen Central)

The failure of the recent United Kingdom Government auction for offshore wind subsidy contracts to attract any new projects has left investors with reduced confidence in UK renewables, according to the recent Ernst & Young renewable energy attractiveness report, with the UK dropping down its international rankings. Will the cabinet secretary provide an update on any strategic investment through the Scottish National Investment Bank that will accelerate Scotland’s offshore renewables capabilities and help to secure a just transition for our energy sector and a fairer and greener Scotland for everyone?

Douglas Lumsden (Conservative, North East Scotland)

What does that have to do with my question?

The Deputy Presiding Officer

Mr Lumsden, do you wish to make a point of order?

Douglas Lumsden (Conservative, North East Scotland)

Yes. On a point of order, Deputy Presiding Officer.

Do supplementary questions not have to have some relevance to the initial question that was asked? The initial question was about an advisory board for the Scottish National Investment Bank, and Mr Stewart’s supplementary question seems to have no relevance to that whatsoever.

The Deputy Presiding Officer

I thank Mr Lumsden for his point of order. I listened carefully to Mr Stewart’s supplementary question, and he sufficiently brought the issue back to Mr Lumsden’s initial question on the assurances that the Scottish Government has received from the Scottish National Investment Bank that it is

“supporting its ambition to create a wellbeing economy”.

As I understood it, that was the part of the question that Mr Stewart was getting at, and perhaps that is the part of Mr Stewart’s question on which the cabinet secretary could focus his reply.

Neil Gray (Scottish National Party, Airdrie and Shotts)

I appreciate that direction, Deputy Presiding Officer.

Mr Stewart will appreciate that I cannot give details on active investments that the Scottish National Investment Bank is currently working on. However, the bank has a strong record on investments that contribute to the offshore renewable sector, including the £6.6 million investment in the clean-energy pioneer Verlume, whose technology uses intelligent energy management to deliver a constant output of power from renewable sources, supporting the company’s expansion plans. In addition, the bank’s £50 million investment in North Star Renewables is supporting the building of service operations vessels to assist the renewable energy sector and strengthening Scotland’s position as a global leader in the offshore wind supply chain. The bank will also be a key delivery partner in relation to the recent £500 million commitment to ScotWind and its supply chain.

Real Living Wage

Marie McNair (Scottish National Party, Clydebank and Milngavie)

5. To ask the Scottish Government, in light of the commitment set out in its programme for government 2023-24, whether it will provide more details of how it plans to increase the number of people earning the real living wage. (S6O-02753)

Neil Gray (Scottish National Party, Airdrie and Shotts)

In line with our programme for government commitment to boost wages, we are providing grant funding to the Poverty Alliance to deliver living wage and living hours accreditation schemes across Scotland. Such schemes promote the business benefits of pay security for both workers and their employers. In July, we introduced a requirement on public sector grant recipients to pay at least the real living wage to all employees and to provide appropriate channels for effective voice.

Although minimum wage rates are reserved to the United Kingdom Government, we will continue to use the levers that are at our disposal to promote payment of the real living wage and enhance fair work in Scotland.

Marie McNair (Scottish National Party, Clydebank and Milngavie)

An effective real living wage policy represents a very welcome attack on poverty pay, and more must be done to assist people on low pay. Does the cabinet secretary agree with me and the Scottish Trades Union Congress that the full devolution of employment powers would allow Scotland to do much more, such as ending zero-hours contracts and fire-and-rehire practices?

Neil Gray (Scottish National Party, Airdrie and Shotts)

The STUC and the Scottish Government have long shared the view that employment powers should be devolved to Holyrood. We continue to call for that to enable us to create fairer workplaces, enhance workers’ rights in Scotland, help to shift the curve on poverty, and deliver a fairer, greener and growing economy in a more prosperous Scotland.

The full devolution of employment powers will allow us to legislate to support workers in precarious employment and ban fire-and-rehire practices. It is important that Scotland can legislate appropriately for its own workforce to ensure adequate protections and security of employment, and to fully implement policies that will best meet Scotland’s distinct needs.

The Deputy Presiding Officer

Question 6 was not lodged.

Fair Work (Unpaid Overtime)

Martin Whitfield (Labour, South Scotland)

7. To ask the Scottish Government, in light of its fair work first policy, what its response is to reports that workers in Scotland lost nearly £1.9 million in wages in a year due to working unpaid overtime. (S6O-02755)

Neil Gray (Scottish National Party, Airdrie and Shotts)

Far be it from me to correct Mr Whitfield, but I think that he meant “billion” as opposed to “million”.

We believe that workers should have good work and secure conditions, with a fair wage for a fair day’s work. We have called on the United Kingdom Government to devolve employment powers to the Scottish Parliament. However, while employment law remains a reserved matter, we will continue to use our fair work policy to promote fairer work practices across the labour market in Scotland.

Through our fair work policy, we ask employers to pay at least the real living wage and to consider the number and frequency of work hours, which are critical in tackling in-work poverty.

Martin Whitfield (Labour, South Scotland)

I am grateful for that response—and that assistance.

Through its emanations, the Scottish Government is responsible for the public sector workforce. What does the Government have to say about the estimated £15 million of unpaid overtime hours in that sector, including in relation to teachers, who work well above their 35-hour week? What is the Scottish Government doing to ensure that those workers are paid for their work during the cost of living crisis?

Neil Gray (Scottish National Party, Airdrie and Shotts)

I feel that I must declare an interest as the husband of a hard-working teacher and the son of a recently retired hard-working teacher.

We look to ensure that, in our public sector pay settlements, we do everything that we can to ensure that our hard-working public service workers earn a fair pay and that their contracts include an assurance that they work the hours that are ascribed to them. There are always challenges to that, and we all look to do what we can to ensure that we contribute in our workplace, but that should be recognised in the fair work policies that we bring forward and the contracts and payments that people receive.

Gordon MacDonald (Scottish National Party, Edinburgh Pentlands)

Does the cabinet secretary agree that, if Scottish Labour members are serious about protecting the rights of workers and going further to deliver fair work conditions in Scotland, they need to take proper action to press their London bosses to commit to devolving employment law to Holyrood as a priority?

The Deputy Presiding Officer

Perhaps the cabinet secretary could focus on those matters that are within his purview.

Neil Gray (Scottish National Party, Airdrie and Shotts)

With regard to my ability, as the cabinet secretary with responsibility for the wellbeing economy and fair work, to ensure that our commitments are being worked through in policy terms, it would be most helpful if Labour were able to give such a commitment and stand shoulder to shoulder with its Scottish colleagues, because we are in a very similar place; it is the divergence between here and London that is the challenge. Perhaps further conversations can be had around whether, if there is to be a future Labour Government, it would allow us the devolution of employment law in order to deliver on our commitments.

New Deal for Business Group Report

Murdo Fraser (Conservative, Mid Scotland and Fife)

8. To ask the Scottish Government what policy changes it has implemented as a result of issues raised in the “New Deal for Business Group: Report on progress and recommendations”. (S6O-02756)

Neil Gray (Scottish National Party, Airdrie and Shotts)

I thank Murdo Fraser for his question because it gives me the opportunity to set out that we have extended the deadline for lodging non-domestic rates proposals to 31 August 2023, which gives businesses an extra month to submit their 2023 revaluation proposals, following the introduction of the new two-stage appeals system on 1 April 2023.

We have re-established the regulatory review group, which met for the first time on 26 October 2023 and will provide advice on the pragmatic implementation of regulations. We have started activities to review and update the business and regulatory impact assessment toolkit and guidance, to ensure that it is accessible and purposeful. We are also establishing the new small business unit to work more closely with small businesses and ensure that their voices are heard during policy engagement.

In such short order, that is a good start, and there is more to come.

Murdo Fraser (Conservative, Mid Scotland and Fife)

I welcome all the engagement that the cabinet secretary referred to, which is very necessary because, last week, a poll of business directors in Scotland showed that fewer than a quarter believe that the Scottish Government understands the business environment in Scotland, and more than two thirds disagree with the statement that the Government understands the business environment.

Business wants action and delivery, not just words. We have just heard from the Chancellor of the Exchequer that the 75 per cent rates relief for businesses in the retail, hospitality and leisure sector will be extended for a further year. That is the number 1 ask of this Government from businesses in those sectors, so will it follow suit?

Neil Gray (Scottish National Party, Airdrie and Shotts)

On the

final point that Mr Fraser raised on domestic rates, all of that is in the mix as we assess the impact on Scotland’s budget of what we have just heard in the autumn statement. It will take some time for the implications of what has been set out to come through in the wash, and some of the more positive elements might turn out to be more negative in relation to Scotland’s budget. We will look carefully at the implications of the autumn statement for our ability to look at non-domestic rates.

On Mr Fraser’s previous question about the attitudes of directors and the feeling about the sentiment of the Scottish Government, we continue to work on that. That is the whole reason why we have the new deal for business and why we are engaging in the way that we are. We understand that delivery will be critical. We published an implementation plan earlier this year to go alongside the recommendations of the new deal for business growth, so that we can be held accountable for the work that we have committed to doing.

The Deputy Presiding Officer

That concludes portfolio questions on wellbeing economy, fair work and energy. We will next turn to the finance and parliamentary business portfolio. I will allow the front-bench teams to change positions should they wish to do so.

Finance and Parliamentary Business

The Deputy Presiding Officer

Again, if

any member wishes to ask a supplementary question during finance and parliamentary business portfolio questions, they should press the request-to-speak button during the relevant question or enter RTS in the chat function during the relevant question.

Elective Care Waiting Times (Parliamentary Debate)

Edward Mountain (Conservative, Highlands and Islands)

1. To ask the Scottish Government whether it plans to propose a parliamentary debate on waiting times for elective care for both out-patient and in-patient appointments. (S6O-02757)

George Adam (Scottish National Party, Paisley)

Currently, there are no plans at this time. As Mr Mountain is aware, any proposals for Government business in Parliament are agreed by the Scottish Cabinet, subject to consideration by the Parliamentary Bureau and, in turn, approval by Parliament.

Edward Mountain (Conservative, Highlands and Islands)

As the minister will know, this party’s business is limited to nine debates per parliamentary year, so there is very stiff competition. Will the minister undertake to raise that specific issue with the Cabinet Secretary for NHS Recovery, Health and Social Care? Despite the national treatment centre opening earlier this year, waiting times are increasing in the Highlands, and constituents in the Highlands expect those matters to be debated in the Parliament.

George Adam (Scottish National Party, Paisley)

This is the third time today that I have been asked a question that is outwith my portfolio. I take that as a compliment to my ministerial abilities.

I encourage Edward Mountain to continue to engage with health colleagues. I am happy to pass on his concerns to my health colleagues as well.

Long-term Financial Planning (Effect of Financial Settlements)

Kenneth Gibson (Scottish National Party, Cunninghame North)

2. To ask the Scottish Government what impact United Kingdom Government annual financial settlements have on its ability to undertake long-term financial planning. (S6O-02758)

Shona Robison (Scottish National Party, Dundee City East)

The United Kingdom Government’s financial settlements to Scotland significantly curtail the Scottish Government’s ability to undertake long-term planning. In recent years, there has been a significant alteration to assumed UK Government plans as a result of events such as the disastrous mini-budget a little over a year ago. In addition, we must also factor in potential changes to assumed capital programme spending by the UK Government in year to hold against the possibility of negative consequentials that would reduce our spending power in year.

This autumn’s statement simply does not go far enough in delivering the funding that we need. That makes the challenges on our budget even more severe. In order to bring as much clarity as it is within our gift to do, we published the medium-term financial strategy, which sets out the challenges to be addressed in our financial position.

Kenneth Gibson (Scottish National Party, Cunninghame North)

Virtually every organisation that the Scottish Government funds seeks three to five-year financial settlements, yet we have seen chronic financial instability at UK level, with four Chancellors of the Exchequer in four months last year, for example. Has the cabinet secretary been given any indication that the current chancellor is considering longer-term settlements in order to help deliver the certainty, efficiency and effectiveness that longer-term financial planning would bring?

Shona Robison (Scottish National Party, Dundee City East)

We have had no such clarity or certainty about longer-term financial planning from the UK Government. We will continue to face significant funding pressures in the year ahead, at a time when costs continue to rise and the need to support people through challenging times remains.

Prior to the autumn statement, I wrote to urge the Chancellor of the Exchequer to provide a funding settlement that will enable us to invest in public services, vital infrastructure and fair public sector pay increases. We have seen no such thing from the autumn statement today. What is emerging is a set of choices that will have a devastating impact on our public services next year.

John Swinney (Scottish National Party, Perthshire North)

Given the answer that the Deputy First Minister has just given to Mr Gibson, will the Government consider making further representations to the UK Government about the necessity of longer-term financial planning information so that Parliament can provide greater funding assurance to third sector organisations that are interested in providing transformational change in our society but need greater certainty about the funding horizon to enable them to do so?

Shona Robison (Scottish National Party, Dundee City East)

I can say to John Swinney that we will continue to do so. Having met a range of organisations during the past few weeks, I can say that, for many organisations, particularly third sector organisations, funding certainty is almost more important than the quantum of the settlement, because it is about being able to keep staff and to plan.

I have to say, however, that what is emerging from the autumn statement today will make every single part of our public sector or third sector organisations’ funding extremely difficult. I will be keen to set out to Parliament at the earliest opportunity the full impact and how grave the situation is after what the Chancellor of the Exchequer announced today.

High Streets (Rejuvenation)

Kaukab Stewart (Scottish National Party, Glasgow Kelvin)

3. To ask the Scottish Government whether it will provide an update on any plans it has to provide financial support for high street rejuvenation. (S6O-02759)

Joe FitzPatrick (Scottish National Party, Dundee City West)

The refreshed town centre action plan, which was published last year, is a call to action, both locally and nationally, to support the rejuvenation of our town centres, and it reaffirms our commitment to the town centre first principle.

In 2021, we established the place-based investment programme, which we deliver in partnership with local government to accelerate our ambitions for town centres, place, 20-minute neighbourhoods and community-led regeneration. We have invested £70 million this year to support projects across the country through that programme.

Kaukab Stewart (Scottish National Party, Glasgow Kelvin)

City centre economies are facing significant challenges, and Glasgow is no different. Currently, a £5.7 million investment in redeveloping Sauchiehall Street, Buchanan Street and Argyle Street is under way, thanks to the city region deal funding. However, there has been a recent decline in the number of hospitality businesses operating in Glasgow. What additional investment similar to the funding that has been announced for Aberdeen’s Union Street is being considered by the Scottish Government to boost the hospitality sector and the night-time economy in Glasgow city centre?

Joe FitzPatrick (Scottish National Party, Dundee City West)

I am aware of the challenges that some in the hospitality sector are facing, so we have established an industry leadership group with the tourism and hospitality sector to understand its unique needs. Glasgow City Council has benefited from a range of investments. For example, in addition to the investments that were made through the city deal, the council has already received a direct allocation of more than £9 million from the place-based investment programme, and the council has discretion on how it uses that money. We continue to work closely with Glasgow, holding quarterly leadership meetings with the Scottish Cities Alliance.

Last week, the First Minister and Mr Gray and I met all eight city leaders to further reinforce our aims to encourage investment and strengthen the prosperity and wellbeing of our cities.

Daniel Johnson (Labour, Edinburgh Southern)

I remind members of my entry in the register of members’ interests. Town centres act as vital commercial hubs, places for businesses to locate and places for the provision of employment. Although we must rebalance and rejuvenate town centres, does the minister agree that commercial purpose must remain at the heart of town centres?

Joe FitzPatrick (Scottish National Party, Dundee City West)

The member is absolutely right. Across the piece, we are all looking at how town centres can have a new vision for the future, with potentially more people residing in them, increasing footfall and ensuring that they remain vibrant. However, I absolutely agree that a commercial basis for our town centres is crucial. That is at the heart of the town centre action plan.

Beatrice Wishart (Liberal Democrat, Shetland Islands)

A survey from Scotland’s Towns Partnership this summer showed that people want to shop locally for ease and for the sake of the planet. However, many retail properties in smaller towns and villages have poor insulation and high energy costs. What more can be done to support the rejuvenation of high streets in small towns and villages to enable more people to shop locally?

Joe FitzPatrick (Scottish National Party, Dundee City West)

Many of the small properties that the member is talking about already benefit from substantial support from the Scottish Government, but we need to consider what more we—the Scottish Government and local government colleagues—can do working in partnership to ensure that our town centres remain vibrant and sustainable. Footfall is crucial to that, but the points that the member makes about sustainability, particularly given the incredible increases in energy costs, are an important factor to consider.

National Health Service (Additional Funding Source)

Sandesh Gulhane (Conservative, Glasgow)

4. To ask the Scottish Government from which part of its budget the additional £300 million pledged for the national health service will be allocated. (S6O-02760)

Shona Robison (Scottish National Party, Dundee City East)

The new funding of £300 million that the First Minister announced in October aims to help to reduce in-patient and day-case waiting lists by an estimated 100,000 patients over three years. That investment is subject to the outcome of the Scottish budget process for 2024-25 and future years, as well as associated approval by the Scottish Parliament.

It is deeply disappointing that the Chancellor of the Exchequer has failed to provide in the autumn statement the funding that devolved Governments need. That makes the challenges for our budget next year even more severe, including those for the NHS.

Sandesh Gulhane (Conservative, Glasgow)

I declare an interest as a practising NHS general practitioner.

That was not an answer, cabinet secretary; it was just a rehashing of a statement. I ask again where the money will be allocated from. Will you not have to make substantial cuts to services such as mental health provision, from which you have already cut £30 million this year?

The Deputy Presiding Officer

I remind all members that they need to speak through the chair.

Shona Robison (Scottish National Party, Dundee City East)

Let us talk about substantial cuts. The Treasury documents that were published today show no noticeable investment in public services, including the NHS, which results in minimal consequentials for Scotland’s NHS. There will be less than £11 million for the NHS in 2024-25, compared with £367 million in last year’s autumn statement.

Those choices of Sandesh Gulhane’s Government will have devastating consequences for every part of our public services in Scotland. He should hang his head in shame for coming to the chamber and asking us about funding for the NHS when his chancellor has deprioritised it for all to see. Today of all days, I will take no lectures from the Tories on funding for the NHS.

Carol Mochan (Labour, South Scotland)

Will the cabinet secretary confirm that all capital spending plans for the financing of the Scottish Government’s programme of national treatment centres will be delivered by the end of the parliamentary session, as committed to in its NHS recovery plan?

Shona Robison (Scottish National Party, Dundee City East)

I have said that, when we set out the budget on 19 December, we will set out alongside that the revisions that will need to be made to the infrastructure investment plan. With the capital cuts that are coming from the UK Government, which were announced and confirmed today, there will be a 7 per cent reduction in our capital spending availability. The chancellor announced hardly anything for capital. That cannot have no impact on our capital spending and infrastructure investment, so we will have some challenging decisions to make when we present the choices that we are making and the priorities that we will take forward. I will set those out alongside the budget on 19 December.

Willie Rennie (Liberal Democrat, North East Fife)

The cabinet secretary will have seen that NHS Fife has already built up a £10.9 million deficit in the first few months of the financial year. The chair of that NHS board is pessimistic about whether costs can be recovered without damaging front-line services. What will the cabinet secretary do to stop the cuts to front-line services that could result from that?

Shona Robison (Scottish National Party, Dundee City East)

The Government has always tried to prioritise funding for the NHS. I will not deny or dismiss the pressures that have arisen for our NHS in trying to deal with the Covid backlog, pay pressures and the cost of medicines. All of that heaps pressure on our NHS boards. However, surely—today of all days—Willie Rennie will join me in condemning the chancellor and the UK Government for giving only £11 million of consequentials for the NHS next year. That is all that the NHS will get next year, compared with the £367 million that was announced for the NHS in last year’s autumn statement. That shows a hollowing out of funding for NHS England and, as a consequence, NHS Scotland.

I do not know why Willie Rennie is shaking his head. Those are the facts. I have the figures from the Treasury reports—

The Deputy Presiding Officer

Cabinet secretary, I will need to move on to the next question.

Shona Robison (Scottish National Party, Dundee City East)

Surely he should join us in condemning the chancellor and—

The Deputy Presiding Officer

I call Clare Adamson.

Local Government Finance Support Schemes

Clare Adamson (Scottish National Party, Motherwell and Wishaw)

5. To ask the Scottish Government how it is ensuring that local government finance support schemes are operating effectively. (S6O-02761)

Tom Arthur (Scottish National Party, Renfrewshire South)

Local authorities are accountable to their local communities and have the financial freedom to operate independently, taking account of local needs. The Scottish Government will continue to work in partnership with the Convention of Scottish Local Authorities to agree a more detailed programme of work, including a fiscal framework and an outcomes and accountability framework, to underpin the Verity house agreement in the coming months. We have also committed to inviting the Accounts Commission and Audit Scotland to be part of that work.

Clare Adamson (Scottish National Party, Motherwell and Wishaw)

I have been helping a number of my constituents regarding the dual housing support scheme, which supports people to go into rehabilitation, and the discretionary housing payment, which mitigates the Tories’ bedroom tax. Those are excellent examples of the Scottish Government putting cash into the hands of the most vulnerable at the most difficult of times, in marked contrast to Westminster’s austerity.

However, it has become apparent that many constituents and third sector organisations are not aware of those support schemes, which are administered by the local authority. I urge the Scottish Government to work with local authorities to ensure that those initiatives are promoted locally and are passported to the people who are entitled to that vital support.

Tom Arthur (Scottish National Party, Renfrewshire South)

I thank Clare Adamson for her supplementary and for highlighting that Scottish Government investment.

We have commissioned Healthcare Improvement Scotland to establish regional improvement hubs, which will bring together groups of alcohol and drug partnerships and other key parts of the local system to design and improve pathways into, through and from rehab. Part of that work is to ensure that local pathways promote routes into residential rehabilitation such as the dual housing support fund.

Local authorities are responsible for promoting the discretionary housing payment scheme in their areas. The Scottish Government has been working with third sector partners to raise awareness of the support that is available to households, particularly with the newly established fuller benefit cap mitigation.

United Kingdom Government Autumn Statement (Engagement)

Bill Kidd (Scottish National Party, Glasgow Anniesland)

6. To ask the Scottish Government what engagement it has had with the United Kingdom Government regarding any impact of the autumn statement on Scotland’s public finances. (S6O-02762)

Shona Robison (Scottish National Party, Dundee City East)

As I outlined to Parliament yesterday, I wrote to the Chancellor of the Exchequer ahead of the autumn statement to set out the Scottish Government’s priorities for action. I also spoke to the new Chief Secretary to the Treasury this morning, when I again emphasised the need for investment in public services and net zero, and the need to support people with the cost of living. The Welsh finance minister and I previously discussed the need for additional investment in devolved Government budgets with the previous Chief Secretary to the Treasury at the most recent meeting of the finance interministerial standing committee.

It is very disappointing that, today, the chancellor has failed to provide the funding that devolved Governments need, which increases the challenges for our budget next year.

Bill Kidd (Scottish National Party, Glasgow Anniesland)

As we heard earlier, hospitality businesses particularly suffered throughout the pandemic and they have faced rising costs as a result of inflation and increased energy prices. Have any discussions taken place to ensure that specific support is provided for the hospitality sector?

Shona Robison (Scottish National Party, Dundee City East)

My ministerial colleagues and I regularly meet representatives of the hospitality industry. The Minister for Community Wealth and Public Finance chairs the new deal for business non-domestic rates sub-group, which includes representatives of the hospitality industry.

We responded to business’s biggest ask on non-domestic rates and froze the poundage in 2023-24, thereby ensuring that Scotland had the lowest non-domestic rates poundage in the UK for the fifth year in a row. Our rates package is estimated to be worth £749 million. As a result of our providing the most generous small business bonus scheme relief in the UK, around half of properties in the retail, hospitality and leisure sectors in Scotland will pay no rates.

Going forward, we will set out our decisions on non-domestic rates in the budget that will be set out on 19 December.

Kate Forbes (Scottish National Party, Skye, Lochaber and Badenoch)

According to the Office for Budget Responsibility, the outlook for the United Kingdom is pretty subdued, and inflation, as well as interest rates, will be higher for longer. Much has been made already of the impact of Tory decisions on the consequential funding that Scotland will receive, but does the cabinet secretary accept that it is a double whammy, because not only will we receive less, but our costs will remain higher due to Tory incompetence?

Shona Robison (Scottish National Party, Dundee City East)

Kate Forbes’s summation—she describes it as “a double whammy”—is absolutely on the button. The question for us is how we reconcile a reduction in our budget and a real-terms cut in capital. In fact, the additional capital departmental expenditure limit is a total of £10 million for next year’s capital allocation from the UK Government. That puts in context some of the questions that we heard earlier about infrastructure investment priorities.

I look forward to hearing what the Tories’ priorities are in the face of the chancellor’s decisions today. When each and every one of them comes here asking for more money, I will be reminding them of the chancellor’s priorities today—[

Interruption

.]

The Deputy Presiding Officer

Members!

Shona Robison (Scottish National Party, Dundee City East)

—

which will have an impact on every single one of their constituencies and the public services in them.

Council Tax Freeze (Impact on Midlothian North and Musselburgh)

Colin Beattie (Scottish National Party, Midlothian North and Musselburgh)

7. To ask the Scottish Government what assessment it has made of any impact that its council tax freeze policy will have on households in the Midlothian North and Musselburgh constituency. (S6O-02763)

Tom Arthur (Scottish National Party, Renfrewshire South)

The total funding for local government and the significant associated savings for taxpayers for 2024-25 will form part of the detail of the implementation of the council tax freeze, which will be agreed with the Convention of Scottish Local Authorities over the coming weeks.

The freeze will mean that every Scottish household will continue to benefit from cheaper council tax bills. If council tax in England increased by 3 per cent next year, for example, it would see the average band D property in England pay over £700 more on average than a band D property in Scotland, following our freeze.

Colin Beattie (Scottish National Party, Midlothian North and Musselburgh)

It is very welcome that the Scottish National Party Scottish Government is helping households across Scotland save hundreds of pounds with the council tax freeze, putting money in people’s pockets when they need it most.

Meanwhile, apparently, East Lothian’s Labour council leader recently threatened to raise council tax by 32 per cent. That would hammer hard-pressed families across my constituency, right in the midst of a cost of living crisis. Will the minister join me in calling on the Labour Party to condemn those tax hike plans and to admit whether it has been planning similar council tax rises across Scotland?

Tom Arthur (Scottish National Party, Renfrewshire South)

We are absolutely committed to constructive engagement with our partners in local government to deliver a council tax freeze that will benefit every part of Scotland. It is for other parties to set out their position—I admit that I struggle to keep up with other parties’ positions, as they seem to change on a weekly basis—but we are absolutely committed to working with our local government partners to deliver a council tax freeze that will benefit every single household in Scotland.

Pam Gosal (Conservative, West Scotland)

The member is right to question how a council tax freeze will affect households in Midlothian North and Musselburgh, but is it not the case that it will also affect households across Scotland, including my West Scotland region, when it comes to the delivery of public services? Can the minister confirm the expected cost of the council tax freeze and, more crucially, where the money will come from?

Tom Arthur (Scottish National Party, Renfrewshire South)

As I set out in my earlier responses to Mr Beattie, we are committed to constructive engagement with COSLA to deliver a fully funded council tax freeze that will benefit households in the member’s constituency and, indeed, households across Scotland.

Alex Rowley (Labour, Mid Scotland and Fife)

Does the minister recognise that a lot of local services are buckling under the financial pressure? Without getting into the party politics of the matter, is he intending to sit down with local government and look seriously at what can be done to protect services for the most vulnerable people in our communities?

Tom Arthur (Scottish National Party, Renfrewshire South)

I thank Mr Rowley for his question and for the tone of it. We are committed not only to delivering, through partnership and agreement with local government, a fully funded council tax freeze, but to ensuring, through our wider commitments and the Verity house agreement, that we can provide sustainable public services for all people in Scotland, and that we deliver the person-centred services that we all want to see.

Government Bonds (Plans)

Alasdair Allan (Scottish National Party, Na h-Eileanan an Iar)

8. To ask the Scottish Government whether it will provide an update on its plans to issue Government bonds. (S6O-02764)

Shona Robison (Scottish National Party, Dundee City East)

The First Minister announced on 17 October that, subject to market testing and due diligence, the Scottish Government will go directly to the bond market in our own right for the first time.

The issue of bonds is part of a wide-ranging package of recommendations from an investor panel of senior figures from investment finance. The Scottish Government will issue bonds when the value-for-money case supports it from a fiscal and economic perspective.

It is deeply disappointing that the Chancellor of the Exchequer failed to provide the funding that devolved Governments need in the autumn statement. That makes the challenges for our budget next year even more severe, so it is right that the Scottish Government pursues all of its fiscal and economic levers to boost investment in Scotland, including the issuance of bonds.

The next steps will be set out in the 2024-25 Scottish budget on 19 December.

Alasdair Allan (Scottish National Party, Na h-Eileanan an Iar)

It is clear that bonds

represent an important opportunity to use our powers to invest in infrastructure during a time that, judging by today’s autumn statement, will clearly be one of continued Westminster austerity. Can the cabinet secretary say any more about how the bonds could help to raise Scotland’s profile and engagement with international investors?

Shona Robison (Scottish National Party, Dundee City East)

The investor panel provided its first-stage work to the Scottish Government in September, and it covers a wide range of findings and recommendations on how Scotland can attract mobile capital to support the just transition to net zero.

That piece of work also includes a recommendation that would involve additional costs but could result in Scotland’s profile being significantly raised in international capital markets through the use of existing devolved powers to issue debt. That would provide a motivation for regular engagement with investors and an opportunity to market Scotland’s investment story, and it would also allow the development of relationships with providers of debt, a track record and a credit rating. However, as I have stressed, the proposal has to meet the value-for-money test, which will be set out by the Scottish Government before we proceed.

The investor panel has produced a valuable piece of work, and I thank it for its efforts and the information that it has provided.

The Deputy Presiding Officer

That concludes portfolio questions on finance and parliamentary business. There will be a short pause before we move on to the next item of business.

Housing

Liam McArthur (Liberal Democrat, Orkney Islands)

The next item of business is a debate on motion S6M-11351, in the name of Mark Griffin, on Scotland’s housing emergency. I invite members who wish to participate in the debate to press their request-to-speak button. I advise members that we have absolutely no time in hand, so I will have to enforce the time limits on speeches pretty robustly.

Mark Griffin (Labour, Central Scotland)

Before we begin, I refer members to my entry in the register of members’ interests, which shows that I ceased to be a landlord over the summer.

I am pleased to open the debate for Labour. We are using our business time to call on the Parliament and the Government to face up to the reality that thousands of families across the country face and declare a national housing emergency. I thank the housing sector for its support for the debate and the briefings it has provided. Scottish Land & Estates, Crisis, Homeless Network Scotland and others all recognise the urgency of the housing emergency and desperately want to see—[

Interruption

.]—the minister and the Government act today. Particular thanks are due to Shelter for working across parties to support the debate.

Today was meant to be about challenging the Government to take responsibility and deliver action to deal with the national emergency. As much as the minister might spend all afternoon trying to pin all the responsibility on the economic illiteracy of the Tory Government at Westminster, this emergency has been made in Scotland by his Government, and it is his responsibility to fix it. Sadly, the minister is not prepared to face up to what his Scottish National Party councillor colleagues in Edinburgh and in Argyll and Bute have faced up to.

John Swinney (Scottish National Party, Perthshire North)

The member rather glided past the question of economic illiteracy in the United Kingdom Government. I do not think that it helps the debate for Mr Griffin to obscure the fact that we are all living with the consequences of some absolutely devastating macroeconomic decisions that were made by the UK Government over many years, but principally in the mini-budget last September. Would Mr Griffin perhaps shine a light for a little bit longer on the economic illiteracy of the UK Government?

Mark Griffin (Labour, Central Scotland)

My colleagues at Westminster have been highlighting that economic illiteracy and will sweep that Government out of office and make changes for the better for this country.

I want to talk about the Scottish Government’s responsibility and the action—or inaction—that has led to the housing emergency that it seems the entire country, apart from the Scottish Government, accepts we are in the grip of.

We cannot accept an amendment that denies the emergency, and we cannot accept an amendment that deflects and offers nothing new, because the facts set out that we are in the grip of a housing crisis on a national scale. There are 9,500 children in temporary accommodation—many of them for up to one year—and the number of people who are homeless is the highest on record, with another household made homeless every 16 minutes. By the time that I and the minister have spoken, two more households in this country will have been made homeless. There are 60,000 households at risk of repossession and 200,000 households languishing on waiting lists, and, despite an emergency rent freeze, rents have rocketed by 12 per cent in the past year and are increasing faster in Scotland than anywhere else in the UK.

Earlier today, Anas Sarwar and I met Shelter’s helpline team, who are on the front line in supporting people who are being made homeless. Day in and day out they support people with nowhere else to turn, who have been failed by councils that are, ultimately, running out of cash as they deal with the housing emergency. We heard about a person who had been sleeping in an out-of-use caravan in a mechanic’s yard. It had no electricity, water or heating, and, when the council found out, the person was told that there was no accommodation available, until a solicitor got involved. A woman with three children was moved from hotel to hotel for months and was forced to share a bedroom with her teenage children, and no adaptations were made for one of the children, who was using a wheelchair.

Most shockingly, we heard of a woman who has been in temporary accommodation for 10 years—she has spent 10 years in temporary accommodation. What is worse is that her six-year-old child has spent their entire life in temporary accommodation. That six-year-old has no concept of what a safe, secure place to call home is. That is an appalling indictment, and the fact that the Government cannot accept that there is a housing emergency when we have people in such circumstances is beyond belief.

My inbox, like those of many others in the chamber, is stuffed full of examples of families, children, and younger and older people who are stuck without somewhere that they can call home. Such stories are repeated across every part of the country, every day of the week. In recent weeks, I have heard from a woman with chronic obstructive pulmonary disease whose home is making her ill, a young family who have cut spending to the bone but are still a matter of weeks away from losing the roof over their heads, and a teenager who was kicked out of home and who is now couch surfing. Those are all devastating and miserable examples of how desperately people in need of a home in Scotland are living today.

However, rather than dealing with the scale of the problem, the Government is systematically underestimating the country’s needs. Councils have been set the task of finding land for a minimum of 200,000 homes over the next decade. Members might think that that number of homes would make a dent in the housing emergency—but only if it was the right number. Last week, Homes for Scotland revealed new data at its conference, which the minister attended, that would terrify any responsible Government into action—but not, it seems, this Government. Homes for Scotland is concerned that local development planning guidance will drastically underestimate real housing need, so it has commissioned a primary research-led report into the true housing need in Scotland in order to support planners. Measuring the number of people in the most extreme circumstances and counting only people who are in overcrowded and concealed households, as well as those who are homeless and in temporary accommodation, ignores the full picture. The Homes for Scotland survey of 14,000 Scottish households found that 28 per cent of Scottish households—700,000—have some form of housing need, which is far higher than the Government’s official estimate of 200,000.

Kate Forbes (Scottish National Party, Skye, Lochaber and Badenoch)

I have some sympathy with the scale of the challenge, as I will say later in the debate. However, real leadership requires sound policies to resolve it. The SNP has built 124,000 social and affordable homes since 2007. What would Labour do?

Mark Griffin (Labour, Central Scotland)

We would build more houses. Labour’s record in Government shows that we built an average of 5,000 more houses each year in office than this Government has managed to build. The cause of Scotland’s housing crisis is a shortage in supply that has been overseen by the Government’s failure to deliver the houses that we need, which has been evidenced by bodies right across the sector. Homes for Scotland, Shelter and a whole range of organisations that specialise in the matter have said that the Government has failed consistently to deliver housing in the numbers that this country needs. Whether members speak to Shelter, Homes for Scotland or housing conveners across the country, they will hear that they have all been told that the minister is in listening mode. However, the response to the debate shows that the Government has not done a lot of listening and that it is definitely not acting.

People right across the country need and want an immediate emergency response at a scale that we have not seen before. The long-term answer to the problem is simple: it will be ended by increasing the supply and number of houses across all tenures through building more homes. The declarations of a housing emergency by both City of Edinburgh Council and Argyll and Bute Council have said that a lack of supply is the significant problem. Building more homes across all tenures is a key part of the solution.

The SNP Government’s inaction is exacerbating the emergency, and it is finding reasons not to act. It refuses to set the all-tenure house building target that Homes for Scotland has called for—a target that could focus Government and industry to co-ordinate action to tackle the crisis.

The minister’s amendment talks of work on the task-and-finish group’s recommendations, but his officials are in charge and are telling him that the Government cannot commit to an interim target for building social housing.

The Government trumpets housing completions, but the number of social homes has dropped by 24 per cent compared to last year, and its chances of picking up the pace are dire because the number of homes that have been approved has plummeted by 50 per cent.

The Government must double what it is doing now in order to have any chance of building the number of homes that it plans to build. At the same time, the number of empty homes has jumped by 1,500 in the past year but the Government has still not delivered an escalating council tax surcharge. Worse still, since it set its 110,000 target, the Government has seen an exodus of staff from the very team that it has tasked with delivering more homes.

The minister’s department has been sounding the alarm for months now. It is an open secret that there is a high risk that affordable housing targets could be missed altogether. Despite mortgage rates rocketing, we are almost two years into a review of the home owners’ support fund, and there is still no new support for people who are struggling with their mortgage payments.

Time and again, Government inaction is making this emergency worse. It is strangling the pipeline and failing to deliver the homes that we need—and look at the consequences. Given half a chance to accept that there is a need to take drastic action, the Government is looking the other way. The finance secretary said yesterday that the Government is broke, but the truth is that, with relentless cuts to council budgets, the councils are trying to tackle this crisis with one hand tied behind their back.

I have heard from constituents who are destitute in their homes because they cannot or will not be rehomed. An amputee who cannot get out of his building and a pensioner with mobility needs on the top floor are told that they are adequately housed, so they are left with little option but to present as homeless.

In East Lothian—the minister’s backyard—the council has said that it cannot take any more homes because the revenue demands to run schools and services are too high. City of Edinburgh Council and Argyll and Bute Council have faced up to reality, but every part of this country is facing a housing emergency. Everyone can see it and feel it apart from those in St Andrew’s house.

The Deputy Presiding Officer

You need to conclude, Mr Griffin.

Mark Griffin (Labour, Central Scotland)

It is time for the Government to accept and admit that there is a housing emergency in Scotland and to support the motion.

I move,

That the Parliament agrees that Scotland is experiencing a housing emergency.

The Deputy Presiding Officer

Thank you, Mr Griffin. I remind those who are looking to participate in the debate but who have not already done so to press their request-to-speak button.

Paul McLennan (Scottish National Party, East Lothian)

I welcome this afternoon’s debate on housing. I also thank stakeholders who have engaged with us today, whom I meet on a regular basis.

The Government has three missions—equality, opportunity and community. Housing is the building block for success in all three. To tackle poverty and protect people from harm, we must have secure and affordable homes. For people to share in economic opportunities, they need the stability of a home; for communities to thrive and to realise their full potential, people need a place to live in peace and dignity.

Housing is at the heart of our social, emotional and economic lives. I am committed to giving housing and homelessness the support and attention that it deserves, and I have been doing that since being in post.

Graham Simpson (Conservative, Central Scotland)

Will the minister take an intervention?

Paul McLennan (Scottish National Party, East Lothian)

I will not at the moment, thanks.

I have met many experts in the sector, and I have spoken to tenants in the private and social rented sectors. I have heard moving personal stories from people with lived experience of homelessness. I have met investors. What people tell me is that Scotland has the right housing targets and the right plan to end homelessness, but they want me to keep those plans moving forward, to maintain momentum with our targets and to create the right environment for investment. I am proud of Scotland’s record on housing, but we need and want to do much more.

I will focus on the delivery of affordable homes. Our ambition is for everyone—

Daniel Johnson (Labour, Edinburgh Southern)

Will the minister give way?

Paul McLennan (Scottish National Party, East Lothian)

I will not at the moment; I have only a limited time.

Our ambition is for everyone to have a safe and affordable home that meets their needs—

Daniel Johnson (Labour, Edinburgh Southern)

Will the minister be taking any interventions?

Paul McLennan (Scottish National Party, East Lothian)

Yes, I will—if I can make progress.

That is why we are making £3.5 billion available in this parliamentary session for the delivery of more affordable and social homes.

Since 2007, we have worked with partners to deliver nearly 124,000 homes, more than 87,000 of which were for social rent. I want to touch on the point that Mark Griffin made. In that period, Scotland has seen 40 per cent—

Stephen Kerr (Conservative, Central Scotland)

Will the minister give way?

Paul McLennan (Scottish National Party, East Lothian)

I will n

ot at the moment, thanks.

Scotland has seen 40 per cent more affordable homes delivered per head of population than in England and more than 70 per cent more than in Wales.

Mark Griffin was asked about policy ideas by Kate Forbes—

Douglas Lumsden (Conservative, North East Scotland)

Will the minister give way?

Paul McLennan (Scottish National Party, East Lothian)

I will not at the moment, thanks.

We have delivered more. Let us look at the figures, which I have here. Between 1999 and 2007, 43,500 affordable homes were delivered, which is an average of 5,500 per annum. Between 2007 and 2023, 122,205 houses were delivered, which is an average of 7,630 per annum. That is 40 per cent more per annum, on average, than in the period 1999-2007. I suggest that Mr Griffin checks his figures, because those are official figures.

Mark Griffin (Labour, Central Scotland)

Will the minister give way?

Paul McLennan (Scottish National Party, East Lothian)

I will.

Mark Griffin (Labour, Central Scotland)

Social homes are clearly crucial. The figures that I gave were for all-tenure house builds. In every single year of a Labour Government, we built, on average, 5,000 more houses. The shortfall, which is set out by Homes for Scotland, has resulted in the housing crisis and the chronic lack of supply that we have today.

Paul McLennan (Scottish National Party, East Lothian)

Government does not build private houses. We help the private sector to do that, but we do not build private houses. The Scottish Government has delivered 40 per cent more affordable homes than the previous Labour Administration did. That is a fact.

Daniel Johnson (Labour, Edinburgh Southern)

Will the minister give way on that point?

Paul McLennan (Scottish National Party, East Lothian)

No, I have to make progress.

Back in 2016, we also brought an end to the UK Government’s policy of right to buy, which took more than 500,000 homes out of the social rented sector in Scotland. To my Tory colleagues, I say that we estimate that, since ending the right-to-buy policy, up to 15,500 homes have been protected and will remain available to renters.

Stephen Kerr (Conservative, Central Scotland)

Will the minister give way?

Paul McLennan (Scottish National Party, East Lothian)

No, thanks.

Looking forward, we are committed to delivering our target of 110,000 affordable homes by 2032, of which at least 70 per cent will be available for social rent and 10 per cent will be in our rural and island communities. That is an ambitious target, but we are making progress. Since 23 March 2022, 13,500 homes have been delivered towards the target, of which 10,500 are for social rent, including almost 23,000 council homes.

We are taking concrete action to boost housing supply, but some matters are beyond our control, whether or not we like that. There are inflationary pressures. Developers have been telling me that construction inflation is at 15 to 20 per cent. Our £752 million budget this year includes at least £60 million to support acquisitions.

Stephen Kerr (Conservative, Central Scotland)

Will the member give way?

Paul McLennan (Scottish National Party, East Lothian)

No, I am not going to take—

Stephen Kerr (Conservative, Central Scotland)

Will the member give way?

Paul McLennan (Scottish National Party, East Lothian)

No, thanks. That funding will address the high number of households in temporary accommodation.

Our recently published “Rural & Islands Housing Action Plan” supports our commitment to delivering at least 10 per cent of our 110,000 target in rural and island communities. That marks an important step in tackling challenges to delivering more homes in rural and island areas. The plan includes a £25 million rural affordable housing fund for key workers over five years, and a three-year package of support worth almost £1 million that is co-funded with the Nationwide Foundation. That will go to the Communities Housing Trust and South of Scotland Community Housing. This morning, I visited Rural Stirling Housing Association, where I talked about the difference that the action plan is beginning to make already.

Since 2016-17, we have supported the delivery of more than 10,000 affordable homes in rural and island areas.

We also talk about the importance of preventing homelessness. We have a world-leading approach in that regard. We are proud of our record on affordable housing supply, but we must also mitigate the factors that contribute to housing precarity and homelessness.

We see housing as a human right. That is why we are taking a world-leading approach to preventing—

Stephen Kerr (Conservative, Central Scotland)

Will the minister give way?

Paul McLennan (Scottish National Party, East Lothian)

I will take an intervention on that point.

Stephen Kerr (Conservative, Central Scotland)

The reality is that the minister has just given us a catalogue of complacency. Why are there record levels of homelessness in Scotland? Why on earth can he not see the connection between the rent freeze that this Government has imposed and the rising levels of rent and the rising levels of homelessness?

Paul McLennan (Scottish National Party, East Lothian)

Thankfully, just today

, the Chancellor of the Exchequer has said that he will end the freeze on the local housing allowance.

The damage that has been done by Stephen Kerr’s Government over three years is an estimated £819 million cut to the allowance across the UK. That is coupled with cuts of £181 million to Scotland’s capital budget. So, just do not go there.

As I said, there is a declining trend in repeat homelessness and a decrease in homelessness from the private rented sector, and reports of rough sleeping remain lower than pre-pandemic levels.

The housing and homelessness sectors are under great strain. Last year was particularly difficult for the sectors, and that was reflected in our latest homelessness statistics. We know that councils are making huge efforts to deliver services to people who are experiencing homelessness.

Recovery from the pandemic, the continuing cost of living crisis and more than a decade of austerity from your Government, Mr Kerr—

The Deputy Presiding Officer

Through the chair, please, minister.

Paul McLennan (Scottish National Party, East Lothian)

—has put people, businesses, public finances and the third sector under unprecedented pressures. That is why we must focus on the things that matter, such as reducing the backlog in temporary accommodation.

We recognise the challenges that local authorities face. I have been going round the country meeting housing conveners to see how national and local government can work together on solutions. We are acting on the recommendations of the expert temporary accommodation task and finish group, including investing in the national acquisition plan. Funding of £60 million for that was announced in July.

We continue to support local authorities and registered social landlords to make use of their existing stock, to bring empty homes back into use and to increase allocations to homeless households. To support that activity, the Scottish Government has made an additional £2 million available to the 15 local authorities with the most significant temporary accommodation pressures.

In the longer term, we know that the best way to reduce the numbers in temporary accommodation is to support people to stay in their homes and to avoid the trauma of homelessness. We are introducing groundbreaking new homelessness prevention duties in this parliamentary year, which are designed to improve the way that local authorities, registered social landlords and public bodies co-operate to prevent homelessness.

We all know that certain groups are at particular risk of homelessness, including women experiencing domestic abuse. We are piloting a £500,000 initiative called “fund to leave” to help women to leave an abusive relationship.

We have made more than £83 million available for discretionary housing payments this year. The money will be used to fully mitigate the UK Government’s unfair bedroom tax, helping more than 92,000 households in Scotland to stay in their homes.

We have also committed to mitigating the UK Government’s benefit cap as fully as possible within our powers. The cap impacts more than 2,700 families. It will be interesting to see what Labour’s position will be if it takes power in Westminster next year. I would hope that the party would commit to that—hopefully, we will hear Mr Griffin make that commitment later on.

Many of the challenges that Scotland’s housing market faces today are borne of disastrous decisions: the freezing of local housing allowance, which we have talked about, a hard Brexit and a catastrophic mini-budget last year.

This Government has been working hard to secure the uplift of local housing allowance in advance of the UK budget statement today. I am relieved to hear that the chancellor will be scrapping the freeze on local housing allowance—

The Deputy Presiding Officer

You need to conclude, minister.

Paul McLennan (Scottish National Party, East Lothian)

In conclusion,

the Government recognises the challenges that people such as this young woman face. We know that there is an unmet housing need. People deserve better. We will continue to work in partnership with local authorities, with landlords and with housing developers to ensure that we have the right range and choice of homes to allow our communities to thrive.

I move amendment S6M-11351.2, to leave out from “agrees” to end and insert:

“recognises that Scotland is facing significant pressures with homelessness and temporary accommodation, and therefore agrees that the Scottish Government should build on its track record of delivering 123,985 affordable homes since 2007 by delivering 110,000 affordable homes by 2032; considers that it should continue to work on the recommendations of the Temporary Accommodation Task and Finish Group and recently published Rural and Islands Housing Action Plan; further considers that it should continue to develop its proposals for a Housing Bill in 2023, with stronger tenants’ rights and powers to prevent homelessness; acknowledges Scottish Government support for local authorities in developing targeted plans to address local housing needs; regrets the disastrous UK Government “mini-budget” of 2022, which has left the housing market struggling against inflationary pressures, as well as the devastating impact of Brexit on construction costs and workforce challenges, and calls on the UK Government to immediately uprate Local Housing Allowance, end the spare room subsidy, more commonly known as the bedroom tax, and reverse the planned real-terms reduction to Scotland's capital budget.”

Graham Simpson (Conservative, Central Scotland)

I thank the Labour Party for bringing the debate to the chamber.

The starting point of the debate is whether one agrees that there is a housing emergency. It appears that the Scottish Government does not think that there is. That is despite overwhelming evidence and two councils having declared such an emergency in their own area, including in the capital, which was backed by SNP councillors. The Government’s amendment is petty, it shows an Administration that is out of touch with reality and we will not support it.

The evidence is compelling. The number of homeless applications increased by 9 per cent in 2022-23. Some 16,200 children have been assessed for, or are threatened with, homelessness. More than 6,000 families have been stuck in temporary accommodation for more than a year. In most council areas, the longest amount of time a child has been stuck in temporary accommodation exceeds a year.

Also, of course, the City of Edinburgh Council this month overwhelmingly declared a housing emergency in the capital; it was the second council to do so, after Argyll and Bute. The City of Edinburgh Council’s housing convener said:

“By declaring a housing emergency, we hope to draw widescale attention to an issue that demands urgent and united action. Every single person deserves a warm, safe, and affordable place to call home and we can address this, if we act now.”

Shelter Scotland director Alison Watson said of that declaration:

“Scotland is facing a housing emergency, which is at its most acute in the capital.”

That in itself should be enough for anyone to back the Labour motion. It is not enough for the Government, though.

Kate Forbes (Scottish National Party, Skye, Lochaber and Badenoch)

One of the challenges around housing is how widespread the difficulties are, not least for owners who are struggling to afford their mortgages because a previous Tory leader crashed the economy, leaving people to face rocketing bills. What does he have to say to them?

Graham Simpson (Conservative, Central Scotland)

We need an all-tenures solution to the housing crisis and the housing emergency, which the Government denies.

Shelter laid out the statistics in stark terms. A record 9,500 children are trapped in temporary accommodation; that is up 130 per cent since 2014. Forty-five children are becoming homeless every day. A household is becoming homeless every 16 minutes. There is a 10 per cent increase in households becoming homeless compared with last year.

Homelessness is at its worst when we have people sleeping rough on the streets, and that is on the rise again. It is at its worst when people are having to use night shelters. We must commit to ending both.

During the previous parliamentary session, I was on the Local Government and Communities Committee, which carried out an inquiry into homelessness. In October 2017, we visited Finland to look at that country’s housing first model. There, they had virtually eliminated rough sleeping. We recommended that the Scottish Government adopt the same approach. For a time, it looked as though the Government was on board, but now we seem to be slipping backwards.

No one should have to sleep rough and no one should have to use a night shelter, but they do. That is what makes it an emergency. It is disappointing that the Government does not see it that way. It has its head in the sand. We cannot begin to tackle a problem unless we first acknowledge the scale of it. We only have to listen to people such as the Edinburgh students I met this morning, who described the emergency for them in this city.

One of the big issues for many years has been our very low rates of house building. The Government amendment fails to recognise the need for more homes of all tenures or to acknowledge that the delivery of private housing is also pivotal to unlocking affordable housing delivery.

Paul McLennan (Scottish National Party, East Lothian)

Will the member take an intervention?

Graham Simpson (Conservative, Central Scotland)

You did not take my intervention, Mr McLennan, so I will not take yours.

The Deputy Presiding Officer

Speak through the chair.

We know that the SNP Government failed to meet its 50,000 affordable homes target on time in the previous session of Parliament. We also know that the number of affordable homes approved has reached its lowest level in 10 years, and that social sector new-build starts are 36 per cent down on last year. The social housing sector needs to be a priority. We should not forget the private rented sector, which has seen landlords bailing out and rents rising thanks to Patrick Harvie’s ill-judged rent cap policy.

My amendment merely recognises that legislation is on the way, and we simply suggest that it should be used as an opportunity to change things. If anyone opposes the amendment, they will need to say exactly what the housing bill should be for if it is not to fix things. We have seen little in the way of detail so far about the bill, but it must tackle the issues that I have raised, and it must do something to address the chronic undersupply.

Denying the problem will not fix the problem. Is there a housing emergency? You bet there is a housing emergency.

I move amendment S6M-11351.1, to insert at end:

“, and calls on the Scottish Government to tackle the issues that have caused the current crisis in its forthcoming Housing Bill.”

Willie Rennie (Liberal Democrat, North East Fife)

SNP members, including Kate Forbes, are right to talk about the Liz Truss budget last year, which had a dramatic impact on household finances and meant that many people simply could not afford their mortgage. Construction costs have gone up, in part because of Brexit but also because of that budget. There is no doubt that demographics have changed. The demand for housing is going up steeply and, to be fair, even though more houses are being built, they are not meeting that demand. That is in part why we are seeing a dramatic impact on the housing situation in Scotland.

We also have the issue of holiday homes and short-term lets, which we have debated frequently, and the issue of second homes, which is putting a bit of pressure on parts of the world such as the east neuk, which I represent. Student demand has changed and, in some parts of the country, more families are being brought over with students from Africa.

All of that amounts to a really difficult situation and huge pressures. In the context of all that, it is unacceptable not to acknowledge that we have a housing emergency. We have a really difficult situation.

John Swinney (Scottish National Party, Perthshire North)

Before Mr Rennie leaves the circumstances and context in which we find ourselves, will he say whether he thinks that the prolonged austerity that was ushered in by the Liberal Democrats in 2010 has been a help or a hindrance in tackling the housing challenges that we face?

Willie Rennie (Liberal Democrat, North East Fife)

Mr Swinney knows, because he was a particularly astute curator of the finances, that it was important to get the finances under control. However, it is on the record that it was important to get the balance right between spend for the public purse and spend for the private citizen. Some mistakes were of course made during that period but, overall, I do not think that Mr Swinney would deny that, when we arrived in government, we found ourselves in quite cataclysmic circumstances.

However, we are here today and we are dealing with a housing emergency that has been in part—[

Interruption

.] If Mr Swinney wishes to make this a partisan point, which I was seeking not to do, it is important that we recognise the failures of the Scottish Government in this regard, because it has not met the rising demand for housing. In my constituency, there are a couple in their 60s who are sofa surfing. There are numerous disabled families—[

Interruption

.] I see that SNP members are not interested, now that I am talking about the difficulties that people face in their daily lives.

There are disabled people right across my constituency who are crammed into overcrowded housing, with not enough space for their equipment. In those very difficult circumstances, their quality of life has plummeted. We have damp and overcrowded houses, people who are surrounded by antisocial behaviour, and disabled people living upstairs, which is completely unsuitable for their needs. Housing officers in Fife are being increasingly blunt with my office staff and are saying that there are just no homes left.

If that is not a housing emergency, I do not know what is. Of course it is not all the SNP’s fault, of course Liz Truss’s budget is partly responsible and of course the demographic changes are responsible as well, but that does not negate the fact that we have an emergency. We should acknowledge that, rather than complacently going on thinking that our plans will be enough.

Paul McLennan (Scottish National Party, East Lothian)

I will address the point that Mr Rennie has made. There have been calls today for Scotland to declare a housing emergency but,

whatever we decide to call it—I respect the decisions of local authorities that have already declared a housing emergency—the most important thing is the actions that we take. I am keen to stress that we have a programme of action. To put it in context—

The Deputy Presiding Officer

Minister, interventions need to be brief.

Paul McLennan (Scottish National Party, East Lothian)

Per head of population, we

build 40 per cent more houses than England and 70 per cent more than Labour-controlled Wales.

Willie Rennie (Liberal Democrat, North East Fife)

But that is clearly not enough.

The people who are desperate for houses do not listen to those statistics; they believe that they do not have a home because they do not have a home. Hearing those statistics will bring them no comfort. It might satisfy the Minister for Housing, but it does not satisfy them. That is why we need to accept that there is a housing emergency.

The Labour motion is good, but it is an Opposition motion. Cammy Day and the City of Edinburgh Council, as well as the leadership of Argyll and Bute Council, deserve huge credit, because a bit of self-criticism is involved in announcing a housing emergency in Edinburgh and in Argyll and Bute, in that they are partly responsible for the situation that we are in.

Would it not be a powerful statement if the minister were to accept that, although he claims that he is doing more, it is clearly not enough and that there is an emergency? That would bring some comfort to my constituents who are desperate for a home. They would get some comfort from the minister acknowledging that more is required to be done for the 4,735 households including children that are in temporary accommodation and for the 29,600 homeless houses in the system. We have 693,000 people in some kind of housing need. That is an emergency.

I understand that construction costs have gone up, which is making it difficult for house builders to build more homes, but the number of new starts is down by 26 per cent, whereas demand is shooting right up.

We need to do so much more, and we need to accept that there is an emergency. That is what I hope to hear from the minister today, because I think that he wants to sort the problem, but he will not sort it if he denies the reality.

Sarah Boyack (Labour, Lothian)

I draw members’ attention to my entry in the register of members’ interests in relation to my former employment.

Edinburgh’s housing shortage has been getting worse for years. On 2 November, as colleagues have acknowledged, the City of Edinburgh Council unanimously declared a housing emergency, recognising that we are in the depths of a housing crisis that touches all aspects of society.

Housing is one of the key issues on which people ask me, as a representative, for help. Families from all backgrounds contact me about the perilous situation in which they find themselves. We urgently need action and investment, because, at the moment, we are not getting them the homes that they urgently need. As of 30 October this year, nearly 5,000 families were being housed in temporary accommodation; that figure is up from 3,500 in March 2020, and it is expected only to rise as our population continues to grow.

As has been acknowledged, despite Edinburgh being our capital, it has the lowest proportion of affordable social rented homes in the country—only 16 per cent compared with the national average of 24 per cent—so it is no surprise that people are struggling to find somewhere safe and affordable to live. A recent council report highlighted that there are, on average, 197 bids for every available house. That means that, time after time, families are refused suitable housing, because there are simply not enough homes available.

The picture in the private rented sector is just as bad. We have lost homes to the short-term let sector, and private sector rents in Edinburgh are the highest in Scotland, with the average rent being in excess of £1,400 a month, or £400 more than the Scottish average. That figure is due only to rise, despite the rent freeze and the eviction ban.