Hundreds of people are still sleeping rough in Scotland

But a Scottish Executive report showed the number of people sleeping rough did drop by a third, from 500 in May 2001 to 328 in October 2003.

The Rough Sleepers' Initiative (RSI) was introduced in 1997 and formally ended as a separate programme in March.

Communities Minister Margaret Curran praised the achievement but said missing the target was disappointing.

The report also showed that there was a significant drop - almost 19% - in the last six months alone.

The minister said the figures showed the RSI was making real progress in getting people off the streets.

She said: "This study shows that the number of people sleeping rough has dropped by more than a third since 2001.

It is an exceptional achievement by all the organisations involved in ending rough sleeping and they deserve a huge amount of credit Margaret Curran Communities minister

"It proves that we were right to invest in accommodation and support services for Scotland's hardcore homeless.

"In 1999 an ambitious target of ending the need to sleep rough by 2003 was set. Today's figures show that we have missed that target, but only just."

Mrs Curran explained that there was a surplus of beds at the weekend count but a shortage of only 13 beds across the whole of Scotland on the midweek night when the survey was undertaken.

She added: "While it is disappointing that there was still a very small gap, it is an exceptional achievement by all the organisations involved in ending rough sleeping and they deserve a huge amount of credit."

SNP reaction

The statistics on sleeping rough concentrate specifically on people who are actually on the streets, as opposed to those staying in bed and breakfast hotels, or in the "living care" of other families

The Scottish National Party's social justice spokeswoman, Shona Robison, accused the executive of "deliberately playing down" the statistics.

"Independent estimates from homelessness charity The Cyrenians suggest that more than 10,000 people each year spend some time sleeping rough," she said.

"That is a long way from the figures of a couple of hundred quoted by the executive."

'Significant step'

The executive publishes twice-yearly statistics on rough sleepers.

In February, it said the number of people sleeping rough had fallen by 14%.

Statistics showed there were 404 people reported to have been sleeping rough at least once a week in October 2002, compared with 471 the previous year.

Liz Nicholson, Director of Shelter Scotland, said: "The Rough Sleepers Initiative (RSI) has certainly been one of the most significant government programmes of the last 10 years.

"Without the level of funding and these new services the number of rough sleepers would have continued to rise and the problem would be very much worse than it was in the early 90s."

'Political commitment'

The charity urged the executive to maintain the "political commitment" to finally eradicate the problem.

Shelter Scotland said councils must maintain funding and ensure strategies to deal with the problem are working.

More affordable housing for rent must become a priority, it said.