Croft house funding

The Scottish Government is considering reinstating a loan scheme to help crofters build or improve their homes.

Crofting Minister Aileen McLeod also indicated a dramatic change to the Croft House Grant Scheme (CHGS) by considering means testing of applicants.

Both potential measures are being examined under an extended consultation to revamp the initiative which has approved funding to build or improve almost 700 homes in the last eight years.

The original proposal was to increase the grant for the Stornoway area from £11,000 to £17,000. Elsewhere in the the Western Isles the planned rate was to rise by £6000 to £28,000.

Introducing a loan scheme may be traded-off with a reducing grant increase as the crofting minister said the proposals are being looked at again.

Aileen McLeod said: “Feedback from our consultation has been extremely helpful and we are now refining our proposals to further improve this important scheme.

"For example, we are looking again at the geographical areas eligible for the standard and higher rate of grant under the scheme, and the appropriate level of grant.

"We are also considering introducing a more formal method of targeting the scheme to those who need it most."

She added: “Amongst responses to the consultation was support for reintroducing a loan scheme to help crofters build or improve their homes. While this was not one of the proposals in our consultation, I am keen to look again at the feasibility of such a scheme being introduced.

“However, this is a longer-term piece of work and - as I do not want to delay the launch of the new grant arrangements – I intend to take it forward separately."

Comhairle nan Eilean Siar has welcomed the continuing consultation.

Donald Crichton, vice chair of its development committee, said: "Over the last year we have made a strong case to the minister and civil servants for increasing and strengthening the Grant as one of the best mechanisms for sustaining our crofting communities and making the scheme as accessible and worthwhile for those aspiring to live and work in our islands.

"This further consultation demonstrates that the Minster has been listening and taking on board our views and we are encouraged by the proposals that are emerging."

Jamie McGrigor, convenor of the Scottish Parliament’s cross party group on crofting, said: “ Some crofters will be disappointed and frustrated that the Scottish Government has still to come to a conclusion on the new CHGS and confirm the final rates but I understand that ministers want to finesse the new scheme in consultation with key stakeholders and that they are still committed to bringing in these changes in this session of Parliament. I hope this proves to be the case as the review of the CHGS was long overdue.

“ Crofters are clear that the CHGS is a cost-efficient way of the government supporting housing in remote and rural areas but have been very frustrated that the grant levels have simply not kept pace with inflation."

Scottish Government explores loan scheme for croft house funding

13 November 2015