Views sought on building safety levy proposals

Proposals for a tax on developers, aiming to raise funds to fix building safety issues in Scotland, have been published for public consultation.

Views are being sought on the proposed Scottish Building Safety Levy, which will be introduced under powers due to be devolved by the UK Government later this year. The consultation will open on 23 September and run for eight weeks, closing on 18 November. 

The levy would apply to the construction of new residential buildings, mirroring measures being introduced in England through the UK Building Safety Act. Funds raised would support the Scottish Government’s cladding remediation programme.

Finance Secretary Shona Robison said:

“We are keen to hear from people across Scotland about our proposals, which would raise funds from developers to help safeguard people living in buildings with unsafe cladding.

“I know that developers share our determination to keep people safe and have continued to make significant progress. This legislation will build on that momentum, ensuring developers make a fair contribution to address building safety defects in Scotland, just as the UK Government is asking them to do in England. 

“We are continuing our work in partnership with developers, in line with our New Deal for Business and Framework for Tax, to ensure this levy best contributes to our mission of keeping people safe.”

Background

Scottish Building Safety Levy: consultation on proposals - Scottish Government consultations - Citizen Space

The UK Government agreed in principle to devolve the powers needed for a Scottish Building Safety Levy in April . Powers secured to introduce building safety levy - gov.scot (www.gov.scot)

Following the recent General Election, the new UK Government has renewed the agreement. The process to devolve powers and the necessary legislative procedures is anticipated to be completed in December 2024.

An earlier, joint consultation sought views on the devolution proposal, including any evidence to inform consideration of the potential for the new tax to create or incentivise economic distortions and arbitrage within the UK. Consultation on devolving powers for a Scottish Building Safety Levy - GOV.UK (www.gov.uk)

Details of how the Scottish Building Safety Levy will operate will be developed through consultation and liaison with the UK Government and residential construction sector.