More capital for housing urgently required says Ritchie

The draft budget for the Department for Social Development will present some serious challenges in delivering services to vulnerable people in society.

That was a key message from Social Development Minister Margaret Ritchie MLA, when she discussed the draft budget with the Social Development Committee today.

In highlighting a 5% shortfall in the day to day budget and a very significant 63% shortfall in capital, the Minister emphasised that in addition to a huge deficit in funding for social housing, some hard choices will have to be made on how best to use the money available. She also addressed the need for innovative solutions to address the shortfall.

In outlining the challenges ahead, the Minister made specific reference to her number one priority, social housing:

“What is desperately needed is an injection of capital into social and affordable housing. The amount available for next year may even be insufficient to meet commitments already entered into this year. The hard fact is that the aspiration of providing 10,000 new homes over the next five years cannot be delivered within the proposed capital allocation. The Executive has recognised that social housing must be a priority for further funds that become available and my Department is also exploring a number of measures to identify where additional funds can be accessed. There are though no short term, quick fix solutions. It might take some time before significant financial leverage is yielded.

“I am determined that the financial outlook for housing must be improved dramatically before the draft budget becomes final.”

Turning to other areas in her portfolio, the Minister highlighted that she would be developing plans to achieve efficiencies in the Social Security Agency and there were greatly reduced funds available to tackle fuel poverty and support Community Development.

Specifically referring to the shortfall in Capital funding, Margaret Ritchie said:

“In order to see what can be done to bridge the huge gap in Capital funding, I have asked my officials to investigate the possibilities of raising funding from other sources. I have commissioned a quick review to see how we can maximise the value of existing land we hold, how to ensure our sold assets go back into housing and generally how to provide for future needs.”

The Review will also explore how to maximise opportunities for private sector developers to plan, deliver and fund projects for housing and regeneration and how a more holistic approach to planning can be achieved.

The Minister concluded: “While it will not be easy, I am determined to do my best to meet the serious challenges presented by this draft budget.”

Notes to Editors:

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