JOHN Swinney fired back at Anas Sarwar during FMQs after the Scottish Labour demanded the sacking of Scotland's Housing Minister.
Figures earlier this week showed that the number of new homes built in Scotland had plunged 17% last year.
During the same period, councils had to deal with a rising number of homeless applications, with Scottish Government data showing there were 33,619 households classed as homeless in 2023-24.
As of March 31 this year, there were 16,330 households in temporary accommodation – with this up by 9% on last year to the highest total recorded by the Scottish Government.
Speaking in Parliament, Sarwar demanded that minister Paul McLennan lose his role as a result of the news.
“After 17 years, when will they take responsibility, rather than always look for someone else to blame?
“For the Housing Minister to claim they have a ‘proven track record’ on tackling homelessness, when it is at record levels, is not just inept, it is shameful.
“Paul McLennan simply cannot continue.
“The First Minister has a choice: put up with more failure or get to grips with the housing emergency, sack this Housing Minister and change direction.”
In response, Swinney accused Sarwar of "always playing the man and not the issue".
He argued that under the SNP government, an average of 7750 affordable homes have been built annually while the figure was 5448 under the last Scottish Labour administration.
"That says to me that this government is getting on with the job," the First Minister told MSPs.
He continued to respond by arguing that while housing is devolved, Westminster funding has been slashed.
"Mr Sarwar said to me that this area of policy is all under the responsibility of the Scottish Government and to an extent that is true," he said. "Housing policy is our responsibility. But there is a budgetary question here.
"Let me just point out to Mr Sarwar that our capital budget, which is what builds affordable homes, is facing a cut of near 9% under the current spending plans of the last Conservative government and the incoming Labour government that they're going to carry on with. Our financial transactions budget has been cut by a whopping 62%.
"I have raised with the Chancellor of the Exchequer and with the Deputy Prime Minister the absolute total stupidity and folly of presiding over a 62% cut in the financial transactions budget.
"So if Mr Sarwar would like to help Scotland in any way, shape or form, why doesn't he persuade the UK Labour Government to desert the Tory agenda and to start investing in our country?"
Early on Thursday, the Scottish Government confirmed investment of £100m will be used to support the construction of about 2800 mid-market homes for rent across the country.
The money, announced in First Minister John Swinney’s Programme for Government earlier this year, will be topped up with cash from institutional investors – which should take the overall funding total to a minimum of £500m.
The move comes as part of a commitment by the Scottish Government to leverage in more private sector cash for housing, helping to make public resources go further.
It comes after the Thriving Investments scheme used an initial £47.5m of Scottish Government cash as part of a £222.5m project to deliver 1200 mid-market homes in Scotland.
Such properties can help provide accommodation for those lower incomes, and can also help people struggling to get a council or housing association home.
