Scottish housing minister Raymond Robertson announced the additional funding today when he met representatives of the housing committee of the Convention of Scottish Local Authorities to discuss housing subsidies.
He said: 'Resources of some £424m were made available to Scottish local authorities for investment in their own housing stock. Much of this investment is being directed at the priority areas of homelessness, community care, condensation and dampness and below tolerable standard housing.
'However, I have been aware that a significant number of authorities have been unable to carry out their planned programmes in full because they are facing a shortfall in the capital receipts they would otherwise expect to have received this year from council house sales. The secretary of state and I have decided that some assistance should be given to those authorities and we have been able to find an additional £16.8m of resources for distribution to those authorities most affected by receipt shortfalls.
'I have also announced today that the government will be providing some £19.3m of housing support grant to authorities next year. Of this sum around £3m is being given to assist with the running costs of hostels for the homeless.'
The minister also confirmed that due to a reduction in the local authority pool rate of interest, housing support grant in 1995-96 would be slightly reduced from £22.3m to £22m. Housing support grant is directed to those authorities which are unable to meet all their council housing costs from rental income.
-- Next year four authorities are expected to qualify for housing support grant for their mainstream council housing, namely Highland, Shetland, Western Isles and Aberdeenshire. A further 21 councils are expected to qualify for help with their hostels costs.
-- The distribution of the £16.8m supplementary allocations is as follows:
HOUSING CAPITAL ALLOCATIONS 1995-96
SUPPLEMENTARY ALLOCATION (M)
Ettrick & Lauderdale
DUMFRIES & GALLOWAY
Annandale & Eskdale
North East Fife
Banff & Buchan
Kincardine & Deeside
Argyll & Bute
Bearsden & Milngavie
Cumbernauld & Kilsyth
Cumnock & Doon Valley
Perth & Kinross