Minister agrees to look again at Highland housing debt

2-Feb-2010

Inverness, Nairn, Badenoch & Strathspey MP Danny Alexander today received an assurance from Treasury Minister Ian Pearson that he would look again at the Highland Council proposals to ease payments servicing the local authority's housing debt.

During today's Treasury questions in the House of Commons Danny reminded the Minister of discussions before the last budget about ways to ease the burden of debt repayments that are preventing the Highland Council from being able to provide the stimulus needed to create jobs and build new homes. Danny asked if the Minister was happy to revisit this extremely important issue now before the next budget.

Ian Pearson responded that he was ‘more than happy' to look again at proposals.

Currently the Highland Council has ten applicants for every house available to let and spends £15m a year just to service the interest on its £146m housing debt.

Commenting after the exchange Danny said:

"The huge Highland housing debt is a millstone around the council's neck. In these tough financial times, getting the Treasury to see the case for debt relief is a crucial part of our campaign for a fair funding deal for the Highlands.

"Last year, the council and I presented proposals to the government for temporary relief from the multi-million pound annual debt repayment, in order that the money could be spent on creating jobs in much needed improvement of existing housing stock and new affordable home building. With construction one of the hardest hit sectors in the recession locally, government support to create hundreds of jobs would be a significant boost. Our original plan would have supported the building of an extra 330 homes and created 470 jobs.

"It was disappointing that this measure was not included in last year's budget, but I welcome the minister's agreement to look at this again now. While the government has sounded positive but failed to deliver in the past, we must take every opportunity to push for the fairer funding settlement the Highlands need."

ENDS