Portfolio Question Time – in the Scottish Parliament at 3:03 pm on 30 October 2024.
To ask the Scottish Government, in light of any engagement that it has had with the United Kingdom Government regarding potential Barnett consequential funding, how much it anticipates that it will be able to allocate in its budget to address any risks arising from reinforced autoclaved aerated concrete. (S6O-03857)
I welcome very much the improved engagement with the new UK Government, although I have also repeatedly made it clear that it needs to invest in public services and infrastructure, which would generate consequential funding for the Scottish budget. We are assessing the implications of today’s announcements by the Chancellor of the Exchequer for the Scottish budget, which is due to be presented to Parliament on 4 December.
I thank the cabinet secretary for that response. RAAC continues to impact more than 100 home owners in my constituency, who are required to sell their homes by agreement with Aberdeen City Council or through the use of compulsory purchase. Does the cabinet secretary agree that, in the event that no Barnett consequential funding is forthcoming, a timely funding solution that enables the council to purchase homes at a fair and equitable price, avoiding the use of compulsory purchase, should be sought as a matter of priority?
As I said earlier, we need to work through the details of today’s budget announcement, but I recognise that this is a very difficult time for affected households.
Aberdeen City Council is engaging with home owners on voluntary sales based on market value. In addition, the council has offered owners home loss payments of up to £15,000, disturbance payments and support with legal costs alongside rehoming support. Although the specific details of the offers are for Aberdeen City Council to determine, the council has stated that the use of compulsory purchase powers would be a matter of last resort. Officials continue to engage with council officers on the issue and will keep in close touch with them throughout the process to ensure that we understand the options that are available to the local authority.
We have a supplementary from Liam Kerr, who joins us remotely.
This is a really important question—
Oh, I beg your pardon, Mr Kerr—you are absolutely 100 per cent with us. Please continue.
I am here, and I am here to deliver what is a really important question, because we need to be clear. Aberdeen City Council is offering the RAAC-impacted home owners the market value of their properties plus a home loss payment, but minus the cost of repairing the RAAC roof panels. The residents have abandoned the process, because it is unfair that they are subject to a RAAC penalty, which will leave many in negative equity. Given that the issue is ultimately about the underfunding of Aberdeen City Council by the Government, does the Government intend to proactively get involved, or is it going to sit this one out?
First, I do not accept the point about the underfunding of Aberdeen City Council. I refer Liam Kerr to the comments that I made earlier about the £14 billion and the comments of the Accounts Commission and the Scottish Parliament information centre, which I know members like to quote, saying that there is a real-terms increase for local government.
However, I recognise the issue that Liam Kerr has raised about negative equity and the cost of repair, and I would certainly be willing to have a follow-up conversation. I would also want to look at RAAC generally, so perhaps that is something that we can talk about as part of the budget process.