In what can only be described as a worrying revelation, new research has shown a dramatic reduction in Scotland’s small and medium enterprise (SME) home building sector.
Last week I talked about a recent retrofit report which called for urgent action to add new features and technologies to old and historic buildings, in order to save what we can of the existing housing stock. It wouldn’t replace the need to build new houses, but it all helps.
The report also mentioned Procast Group’s call for an accreditation body to protect key skills needed in the retrofit revolution, such as external wall insulation. It claims the specialism is currently undervalued and is now experiencing a staff shortage. The cracks in the industry keep getting harder to fill, and SMEs are suffering more than most.
According to a recent report by Homes for Scotland (HFS), the market share of homes built by SMEs has plummeted from 40 per cent in 2017 to a meagre 20 per cent in 2023. This decline couldn’t have come at a worse time, as Scotland grapples with a national housing emergency, with 28 per cent of households in some form of housing need.
Jane Wood, the chief executive of HFS, has rightly sounded the alarm. The data reveals a critical gap in our housing strategy – one that, if not addressed urgently, could spell disaster for the nation’s housing aspirations.
Wood emphasises the essential role of SME builders, particularly in unlocking brownfield sites – the very areas the Scottish Government claims it wants to prioritise.
There are natural challenges that smaller companies face such as economies of scale and the upfront cost associated with residential developments. Yet SMEs are being unnecessarily suffocated by regulatory burdens, high upfront costs and a sluggish planning system.
The Scottish Government needs to wake up and smell the concrete. These SMEs, once the lifeblood of our housing market, are now on life support. The decline of SME builders is not just a number on a report – it’s a stark indicator of a failing system. The bureaucracy choking our small builders is not just frustrating, it’s economically and socially detrimental.
The recommendations put forth by HFS are not mere suggestions, they’re an urgent call to action. A cross-portfolio review to eliminate SME challenges, proportionate planning practices, innovative funding streams, and a focused delivery vehicle to unlock small sites – these are not optional if we are serious about solving our housing crisis.
Before the financial crisis, SMEs were delivering 3,000 more homes each year. Returning to this level of productivity could create an additional 13,200 jobs. The social and economic benefits are glaringly obvious. So why the lack of movement? It’s time for politicians and local authorities to stop paying lip service to the housing emergency and start implementing real world reforms.
HFS’s chief exec is not alone in showing concern. Hugh Fairbrother from Scottish Water and Eve McCurrich of Whiteburn Projects both echo Jane Wood’s sentiments, and I suspect there are many others who feel the same.
SMEs are crucial for the diversity and vitality of our communities. A decline of SME housebuilders is a loss not just of homes but of local businesses and jobs.
These companies are famously elastic, meaning they can usually adapt to market requirements much faster than larger companies. On top of this is the fact they create skilled groups of specialised workers.
These figures should make us think about the real value of smaller businesses.
The housing emergency in Scotland demands immediate action. SMEs have shown resilience and potential, but they cannot fight this battle alone. We need to see some cutting of the red tape, and provision of the support these builders need. This is not just about building homes; it’s about building a future where every Scot can have a place to call home. The time for action is now – before it’s too late.
It’s only a few days until we go to the polls and this will no doubt spark big promises, and potentially big changes. Hopefully Scotland’s built environment will see some changes too.
Edinburgh freezes Taiwan deal amid China risk
Edinburgh decision makers have shelved the city’s friendship agreement with Taiwan over fears that Chinese sanctions could have significant implications for the local economy. The reliance on Chinese trade, investment, education, and tourism means that any disruption could have far-reaching impacts on the city and wider Scottish economy, highlighting the delicate balance between political principles and economic pragmatism.
China is a critical trading partner for Scotland, contributing substantially to our economy through exports, investments, and tourism. In 2022, Scotland exported goods worth approximately £796 million to China, making it one of the country’s top trading partners. Potential Chinese economic sanctions therefore run the real danger of substantial revenue losses and potential job cuts across Scotland.
Key sectors include whisky, salmon and higher education, with thousands of Chinese students studying at Scottish universities. Our unis are heavily reliant on international students, particularly from China, who contribute millions of pounds in tuition fees and local spending. A decline in Chinese student enrolment, due to strained diplomatic relations, could impact the financial stability of these institutions and reduce the vibrant multicultural environment that they help sustain.
Furthermore, the tourism sector stands to suffer. In Scotland, Chinese tourists contribute significantly to the hospitality and retail sectors. So any decrease in Chinese tourism resulting from geopolitical tensions would negatively affect these industries, which are still recovering from the impacts of the COVID-19 pandemic.
On the business front, Chinese investments in Scottish infrastructure and technology sectors have been instrumental in driving growth and innovation. Potential sanctions could deter future Chinese investments, slowing down economic development and technological advancements. This would be a considerable setback for Scotland’s ambitions to position itself as a leader in these fields.
While Edinburgh’s decision to pause its Taiwan friendship deal might seem morally dubious from a geopolitical standpoint, business owners more often than not think with their bottom line in mind. The potential economic repercussions for Scotland are significant so this decision underscores the economic vulnerability and strategic considerations that local governments must weigh up when they decide who to do business with.
It Made Me Laugh
Shortbread swipes right at Edinburgh Airport
Scots are famed for our delicious scran and Edinburgh Airport has decided to capitalise on our foodie reputation with the introduction of the world’s first interactive shortbread vending machine.
The innovative project by Walker’s Shortbread highlights the brand’s 125-year-old legacy. Made in collaboration with World Duty Free it’s the souvenir tourists to the capital never knew they needed.
This unique machine not only dispenses shortbread but also offers an interactive experience where travellers can learn about shortbread history and participate in a digital quiz to find the perfect product match. Like a dating app – but for shortbread.
This installation is aimed at providing a memorable taste of Scotland to passengers from around the world. Tourists will be able to follow the crumbs all the way to the departure gate.
It Made Me Weep
Can Rogano be rescued?
The closure of Rogano, a Glasgow institution since 1935, was sad news for the city. The restaurant was known for its Art Deco interiors, seafood and famous patrons.
However, a lawsuit filed against the landlord – Spain’s richest person, Amancio Ortega – could change its fate. The legal action aims to resolve disputes that have kept the establishment shuttered since the pandemic.
Its owner Forthwell Ltd claims it had been unable to reopen because of flood damage on three occasions between December 2020 and January 2021. Its lawyers want a judge to order the landlord to repair, or pay £789,000 damages.
