The Building (Fees) (Scotland) Amendment Regulations 2025: business and regulatory impact assessment

Executive summary

Issue and why it needs to be addressed

A number of changes to strengthen the building standards system are being introduced through the work of the Futures Board Programme that will require verifiers to have the appropriate levels of resource to ensure changes are implemented effectively. Verifiers will need to invest in workforce, technology and training to facilitate the improvements to strengthen the system. Increased building warrant fee income will allow local authorities to do this.

Intended outcomes

This policy will increase building warrant fees from 1 April 2025, as part of a three year model to increase fees annually, providing additional resources to local authority verifiers to facilitate changes to improve and strengthen the building standards system in Scotland.

Options

A summary of the options is provided below. The advantages and disadvantages of each option is provided on pages 7-8.

Option 1 - Increase building warrant fees in line with the three year building warrant fees model.

This is the preferred option and involves an amendment to fee regulations through Parliament. This option has been developed through research and modelled as part of a three year approach to increasing fees.

Option 2 - Do nothing.

This option is least preferred and has been discounted. It does not require any input from Scottish Government officials for changes to regulation.

Option 3 - Delay building warrant fee increase to the following year (2026/27).

This option has been considered due to the nature of setting annual financial budgets in local authorities and the time it takes for additonal building warrant fee income from the first year of the model to be reinvested into the service.

Sectors affected

• Construction and trade sector organisations and businesses
• General users of the building standard system (public)
• Local authority verifiers
• Developers

Engagement completed, ongoing and planned

• Board meetings, Working Groups and sub-Working Groups, with additonal meetings with key stakeholders on either a monthly basis or when required.
• COSLA officials ongoing engagement regarding changes to building warrant fees, meetings as required.
• 2023 written consultation on changes to building warrant fees: 95 responses. Responses were from industry stakeholders including architecture and construction businesses, developers, members of public and local authorities.

Anticipated impacts (intended and unintended, positive and negative) and mitigating actions

Intended impacts would see increased building warrant fees from 1 April 2025 and increased reinvestment in the building standards system. Positively, we would see increased investment in service.

Anticipated negative impact is increased financial impact on all users of the building standards system, including the public, public sector organisations, businesses, developers and contractors.

This policy will positively impact the housing emergency through increasing the capability and capacity of building standards verifiers to deliver housing through the building standards system. Increasing capability and capacity will also provide additional resources to manage the cumulative impact of regulatory change on local authority verifiers.

Unintended impacts include increased number of applications before the end of 2024/24 financial year to circumvent the increased application fees.

Enforcement / compliance

Local authority verifiers will be required to update their existing building standards guidance, websites and back-office systems in line with similar changes on the Scottish Government website and online fee calculator. Direct engagement with respective local authorities will be undertaken to support changes, as required. Minimum enforcement actions will be needed.

Recommendations / implementation plans

Option 1 is being taken forwards. This allows local authorities to receive the increased building warrant fee income within the new financial year 2025-26.

Building warrant fees will be increased from 1 April 2025. Fee levels have been independently validated by an external research contractor as per the building warrant fee model and reviewed by Scottish Government officials and Verification Delivery Model Working Group.

Evaluation and monitoring of implementation / review of BRIA

Officials in BSD are undertaking additional monitoring and reporting of fee investment in local authority verifier teams following on from the increase in building warrant fees in 2024.

This work will continue throughout the three year period of the building warrant fee model and information provided on a monthly basis and through quarterly KPO reporting will be followed up directly with local authorities for progress updates