News / Council house rents set to rise
LOCAL MSP Tavish Scott has failed to convince fellow parliamentarians at Holyrood that Shetland should continue receiving government support to service its £41 million housing debt.
The news means that Shetland Islands Council has no option but to bump up council house rents by as much as 15 per cent next April.
As of 2013/14 Shetland will have the highest council house rents in Scotland.
Until now, the Scottish Government has annually paid £760,000 in housing support grants to the SIC, but this is now likely to be abolished by spring 2013.
The new Local Government Finance (Scotland) Bill, going through the committee stage on Wednesday without amendment, will discontinue the payment.
Mr Scott said: “Shetland tenants, the council and local councillors have made a sensible case on reducing the housing debt inherited from the 1970’s as Sullom Voe was built.
“Now the Scottish Government is set to abolish the housing grant income received by the SIC. If that happens without any financial agreement then rents could rise and investment in badly needed new council housing will fall.
“I will continue to make Shetland’s case as the bill proceeds through parliament but it is very clear that the council is seen as rich by the central belt and should sort out housing debt from its own reserves. That is unfair given the pain the islands currently face on schools, ferries and other public services as the Council seeks to balance its books.”
SIC convener Malcolm Bell said: “Shetland Islands Council has made its case to the local government committee on this subject, and welcomes Mr Scott’s help in highlighting the position for Shetland’s tenants in the event that some sort of transitional agreement is not forthcoming.
“In the meantime, officers and members will continue to have a dialogue with the Scottish Government to try to reach an acceptable settlement that protects our tenants from unacceptable rent increases.”
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