Affordable homes budget at Fife Council underspent by £30m despite housing emergency

Fife Council underspent its affordable homes budget by almost £30 million last year, despite being in the midst of a housing emergency.

The authority intends to build an extra 1,250 council houses over the next five years.

This will help deal with growing waiting lists and an increasing number of people presenting as homeless.

Housing spokesperson Judy Hamilton described the underspend as “slippage” and said the money will be spent.

The collapse of construction firm First Endeavour, which had a contract to build 200 homes, was blamed for part of the issue.

However, Ms Hamilton (Labour) came under fire from the SNP opposition when the issue was discussed at a full council meeting on Thursday.

SNP housing spokesman Brian Goodall said: “Why, in the middle of an affordable housing emergency, is the budget for the single most important tool to deliver affordable homes underspent in this way?”

‘Why was more not done to address the situation?’

Some 13,940 people were waiting for a council house in Fife at the end of July. That’s 374 more than in March.

And the average wait time is 17 months.

Mr Goodall added: “My understanding is the issues around First Endeavour only account for around a third of the underspend.

“Does the administration spokesperson recognise her responsibility for overseeing this kind of spending?

“Why was more not done to address the situation in year?”

Ms Hamilton responded: “I think we all understand there is slippage when dealing with construction and the capital programme.

“This has just crept into another year and it will be used.”

She said she was unaware of the final budget outturn until recently.

Council still pressing ahead with affordable homes programme

The Council declared a housing emergency on March 21, becoming the fourth Scottish local authority to do so.

Ms Hamilton said then that a 26% cut to the Scottish Government’s affordable housing programme was “the last straw”.

The reduction means the loss of a potential £9 million for Fife.

An emergency action plan is in the process of being drawn up in partnership with homeless charity Shelter Scotland.

Despite this, Fife Council is pressing ahead with its affordable homes programme.

And last week councillors approved the construction of 12 new houses in Milesmark, Dunfermline.