Edinburgh funding: MSP makes plea at Holyrood for fairer formula on allocation of Scottish Government housing cash

A Lothian MSP has called for an urgent review of the funding formula for sharing out Scottish Government housing cash to ensure Edinburgh receives its fair share.

Tory Sue Webber raised the issue in a question in the Scottish Parliament chamber, telling MSPs that Edinburgh's housing committee had agreed last week to freeze housing allocations.

She said: “Only those with gold priority will be considered for a new council home. All others looking to move home within the city will need to wait even longer.

Lothian Tory MSP appealed for a fairer formula on housing fundingplaceholder image
Lothian Tory MSP appealed for a fairer formula on housing funding | Scrrenshot

“Edinburgh receives around a six per cent share of the affordable housing budget using a Cosla-based formula that disadvantages the Capital. Meanwhile the acquisitions budget is allocated based on need, meaning Edinburgh receives over a third.

“Will the Cabinet Secretary urgently review the funding formula to ensure Edinburgh gets its fair and needed share of moneys? “

In reply, Finance Secretary Shona Robison said along with other local authorities, Edinburgh council had received an extra £60 million, or an additional 5.9 per cent of funding, compared to 2024-25, and it would receive £73.9 million — an extra £8.1 million — in capital funding.

She continued: “Sue Webber, in many ways, answered the question herself, because she described the funding formula as being Cosla-based. That funding formula is a needs-based formula that is agreed with Cosla on behalf of 32 local authorities each year. If I were to step in and disregard the Cosla agreement, which it arrived at on behalf of 32 local authorities, people would be popping up across the chamber to criticise me for doing so.

“And I point out to Sue Webber that she cannot support £1 billion of unfunded tax cuts at the same time as calling for more money for Edinburgh council or anyone else.”

Lothian Labour MSP Sarah Boyack took the opportunity to raise the controversial cuts to the funding of voluntary organisations by the Edinburgh Joint Integration Board, which oversees health and social care in the Capital.

She asked: “Is the Cabinet Secretary aware of the cuts that are being made to dozens of vital charities by the Edinburgh Integration Joint Board, which means that the city council must now step in to fund those organisations—given the massive pressures that NHS Lothian is under and our growing population—to keep people well and healthy?”

Ms Robison said the government understood the pressures on public services, which were felt across the UK because of demographic challenges.

“However, the government has given record levels of investment—more than £15 billion—to local government and £21 billion to the national health service and social care. Those are record levels of funding. We expect councils and the health service to ensure that they are adequately funding local services and third sector organisations, which do a very important job.”

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