Move to soften housing grant blow

SHETLAND’s housing tenants could see rent rises of around 15 per cent unless the Scottish government and Shetland Islands Council agree a new financial arrangement before the housing support grant is abolished.

Up until now the government in Edinburgh has paid around £800,000 a year to help pay interests on Shetland housing debts of around £40 million, incurred during the oil boom era in the 1970s.

Plans to abolish the grant as part of the  new Local Government Finance (Scotland) Bill could mean that local tenants will have to face a rent hike of as much as £8.13 per week, because the SIC has no other way to raise the cash.

It also means that less money will be available for building new council houses.

On Wednesday, the Scottish parliament’s local government committee will discuss a range of amendments drawn up by local MSP Tavish Scott.

Mr Scott said he and council convener Malcolm Bell had been lobbying government ministers all summer to find a solution.

“If the council lose government housing support then tenants face a weekly hike in rent of £8.13. Our tenants already pay the second highest rents in Scotland. People on lower incomes can ill afford any further increase,” the MSP said.

Mr Scott added: “It would be very wrong for the Scottish Government to place the full housing debt burden of £40 million on 1,800 local tenants.

“That is why I am asking parliament to accept an amendment to the proposed law that will mean there has to be an agreed transitional financial scheme in place before housing support is abolished.“