In an announcement yesterday Scotland’s First Minister, Alex Salmond, stated that a thousand new council homes would be built at a cost of 120 million pounds. This will bring the number of new council homes built under the new "kick start" scheme to 3,300. The new homes should support almost 2,000 jobs for Scotland.

The Government will provide 30 million pounds and the other 90 million pounds would come from investments by local authorities. Salmond said the housing announcement would provide "more families with a safe and secure roof over their heads" and a much needed boost to the construction industry.

Shelter Scotland director Graeme Brown said: "With less money in the pot next year, and future years, tackling Scotland’s housing crisis will need both new thinking and urgent action."

Johnathan Fair, Chief Executive of Homes for Scotland, the home building industry body, said: "The emergency UK Budget heralded a sustained period of downward pressure on direct public expenditure, and with it also containing little if any measures to stimulate the Scottish house building economy, this announcement is welcome news."

Finance Secretary John Swinney was told that the Scottish Government must be faster at providing budget cuts coming under intense pressure from Labour on Thursday to produce a budget draft when Parliament returns in September from summer recess. Swinney has been accused of stalling on producing a draft and preventing scrutiny of his budget. Swinney responded that the SNP administration was being asked "to do something which we cannot do because we do not have the financial data available to us."