To ask the Scottish Government how it will ensure that lenders’ confidence in the (a) social housing and (b) other sectors will continue following Brexit, and what contingency measures are planned to mitigate any adverse outcomes.
In the face of the UK Government’s continuing reckless approach, a no deal exit increasingly appears to be the most likely outcome and therefore as a responsible government we have stepped up our no deal preparations. Ministers and senior government officials are in regular contact with banks operating in Scotland to discuss the implications of Brexit and wider economic issues. The Scottish Housing Regulator, who is accountable to Scottish Ministers, is responsible for the regulation of social housing and one of its key functions is to monitor and assess the financial well-being of Registered Social Landlords. It has an explicit objective to help to maintain lender, investor and public funder confidence in social housing. In December 2018, UK Finance, the representative body for private lenders and investors in social housing noted that : “Funders to Scottish RSLs take great comfort from the current approach of the Scottish Housing Regulator, which is risk-based and proportionate.”
A £30 million deal between Swedish lender Handelsbanken and Southside Housing Association in Glasgow to finance new build properties and improvements announced on 5 March demonstrates lenders continuing confidence. This is the banks debut in Scotland’s social housing market.
The Scottish Government is absolutely committed to safeguarding, as far as we are able to do so, the interests of all sectors and businesses in Scotland at this uncertain time. Our focus is about mitigating any drop in economic activity, ensuring access to finance remains open so we can seek to keep businesses operating and removing constraints for businesses to trade. In February the Scottish Government launched a public information website to provide important advice around issues such as transport, food, medicines and citizens’ rights. It is available at www.mygov.scot/euexit . This will be regularly reviewed and updated, in order to ensure that the latest information is made available.
As part of our support for business, the multi-agency Prepare for Brexit website www.prepareforbrexit.scot offers practical advice which can help to safeguard, as much as possible in these circumstances, a company’s own growth, and that of the Scottish economy. Businesses can access advice, online self-assessment toolkits, book onto learning events, and apply for a £4000 readiness preparation grant.
While we are doing everything we can to prepare, we will not be able to mitigate all of the impacts following Brexit. It is therefore vital that all sectors, including the housing sector, make the necessary preparations and are as resilient as they can be.