Shetland will become the last local authority in Scotland to abolish the Housing Support Grant.

The new measure will see Shetland Islands Council receive financial support from the Scottish government to help it adapt to the new changes.

The Council was the only one in Scotland to continue to receive the Housing Support Grant. It will now be abolished in April 2013.

Housing Support Grant originated in 1978 and was implemented in order to aid Councils with housing debt that was causing difficulty in balancing housing revenue accounts.


The government says the Grant is no longer needed because it now offers councils up to £30,000 per unit grant for new build properties.

The Parliamentary Committee scrutinising the new Unoccupied Properties Bill has recommended the Housing Support Grant be abolished.

Subject to agreement with Shetland Islands Council, the abolition of Housing Support Grant can proceed from April 2013.

Housing Minister Margaret Burgess said: "Ending the Housing Support Grant was important for the whole of Scotland, as it has become and outdated part of the system.

"However, we were aware the Shetland Islands Council, as the only local authority still in receipt of this grant, might need support if this change was to happen.

"As a result we have agreed financial support to help the Council adapt. I hope it will help the Council keep any future rent increases to a minimum.

"It also means the Scottish Government can concentrate its resources on helping social landlords across the whole of Scotland to increase the supply of social housing."

(IT)