News / Carmichael queries housing grant cut
THE UK treasury is to be asked if it can bypass the Scottish government to help pay Shetland’s £40 million public housing debt.
The move comes after the Scottish government decided to stop paying housing support grant, which only goes to Shetland.
Shetland’s housing debt was built up in the 1970s to pay for accommodating oil workers building Sullom Voe oil terminal.
Repeated efforts to persuade the UK government to clear it have failed.
On Wednesday Scottish housing minister Margaret Burgess told parliament the housing support grant was being halted, a move local MSP Tavish Scott had tried to block.
However in a last minute phone call to Shetland Islands Council leader Gary Robinson, Burgess and local government minister Derek Mackay offered a final payment of £840,000 over the next three years to cover the interest.
Robinson asked for the offer to come as a lump sum and to be put in writing.
He said: “We have not got a great deal of choice in this. It’s a matter of take it or leave it.”
The council is worried that losing the cash will force them to put up council house rents, which are already amongst the highest in Scotland.
Meanwhile northern isles MP Alistair Carmichael is asking why money paid to Scotland specifically to be passed on to Shetland is being kept in Holyrood coffers.
“It seems worth asking whether or not that money can come directly from London to Shetland,” Carmichael said.
“I think the treasury should be concerned that money they give the Scottish government for a very specific purpose isn’t being spent on that purpose.”
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 600 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.