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

Section 2: Engagement and information gathering

Engagement approach

Engagement with stakeholders has been undertaken through a combination of Board meetings, Working Groups and sub-Working Groups, with additonal meetings with key stakeholders on either a monthly basis or when required. Social media has been used to advertise ongoing work with regular update blogs published through scot.gov website. The Scottish Government Building Standards website has been kept up to date on the work of the Futures Board.

Engagement with Research on the income and expenditure of building warrant fees was held in 2022-23 and included meetings with Local Authority Building Control (LABC) in England and Wales and engagements sessions and surveys with local authority verifiers in Scotland. Many responded with detailed feedback and evidence which formed part of the final report. Research also consisted of the detailed analysis of quarterly reporting of building warrant fee data from local authority verifiers.

A written consultation was held in 2023 on changes to building warrant fees and received 95 responses. Respondents were a mix of industry stakeholders, representative organisations, developers, local authorities and members of public. Previous research conducted in 2022-23 provided evidence and data for this consultation.

Working Groups and Board meetings have been held 3-4 times a year with meetings with key stakeholders such as LABSS and the SBSH held monthly.

Internal SG engagement / engagement with wider Public Sector

Internal SG engagement

Engagement has taken place at a high level with Planning over the course of this model. Planning fees are due to be increased from December 2024 onwards in a phased approach similar to the model set out with building warrant fees since 1 April 2024. Planning fees and building warrant fees will largely affect the same stakeholders due to the nature of the work.

Engagement has been undertaken with SGLD prior to the year 1 increase in fees and is ongoing with drafting of relevant SSI’s.

Engagement has been undertaken with SG Local Government Finance colleagues on the specific GAE funding applicable to each local authority building standards verifier and how funding will be used to support the Scottish Building Standards Hub.

UK / Devolved Administrations

No engagement has taken place directly with other UK devolved administrations. During building warrant fee research in 2022-23, the research contractor met with Local Authority Building Control (LABC) in England and Wales to understand the challenges the building control system in England and Wales experience. Their response and feedback were recorded in the final research report.

Wider Public Sector

Officials have regularly engaged with COSLA officials regarding changes to building warrant fees and meet on an ad-hoc basis. COSLA are represented on the Futures Board and the Verification Delivery Model Working Group. COSLA officials are aware of the proposed policy action.

Officials meet with LABSS on a monthly basis regarding all the changes the Futures Board Programme is bringing forward. LABSS represent Scotland’s 32 local authority verifiers and is a member of the Futures Board, Verification Delivery Model Working Group and multiple other relevant Working Groups and sub-Working Groups.

Multiple individual engagement sessions have been held with local authority verifiers on the monitoring and reporting of fee investment providing verifiers the opportunity to discuss any challenges or barriers. An online engagement session for all local authority verifiers was held in February 2024 regarding the changes to building warrant fees and the introduction of the three year model. A further engagement session is planned in early 2025. The Scottish Futures Trust is a member of the Futures Board and is aware of the proposed policy actions.

International

No engagement has taken place with government organisations in other countries regarding this proposal.

Business / Third Sector engagement

A written consultation on changes to building warrant fees was conducted in 2023 and received 95 responses. Responses were from industry stakeholders including architecture and construction businesses, developers, members of public and local authorities.

The Futures Board, chaired by Ken Gourlay, CEO of Fife Council and member of SOLACE, meets 3-4 times a year. Members of the Futures Board represent a large sector of the construction industry. Representatives include:

Federation of Master Builders (FMB), Royal incorporation of Architects in Scotland (RIAS), Built Environment – Smarter Transformation (BE-ST), Chartered Institute of Building (CIOB), Scottish Futures Trust (SFT), COSLA, Construction Scotland, Royal Institution of Chartered Surveyors (RICS), Homes for Scotland, Certification Scheme Providers and LABSS.

The Verification Delivery Model Working Group meetings 3-4 times year and consist of members from the following organisations:

• Wheatley Homes
• COSLA
• LABSS
• RIAS
• Construction Scotland
• Improvement Service
• SNIPEF
• RICS
• CIAT
• Homes for Scotland.

Additional consultations and research is planned over the coming years to identify the impact of building warrant fee increases and discounts for certification. The Futures Board has also recently agreed to extend its programme to the end of 2026 so engagements with key stakeholders can continue.

Public consultation

A public consultation on building warrant fees was launched in July 2023 and closed in October 2023. It was advertised to all representatives on relevant Working Groups and Boards, highlighted through partner channels such as LABSS, Construction Leadership Forum and other organisations, emailed to stakeholders and advertised on public communication channels such as blogs and social media.

In total, 95 consultation responses were received from 39 individuals and 56 organisations. There was widespread consensus and agreement to all the proposals put forward, excluding questions 3.1 and 3.2. The majority of respondents agreed to an increase in building warrant fees (65%) and to using a proportion of fees to support a national Building Standards Hub (70%).

81% of respondents supported the introduction of an enhanced fee for High Risk Buildings (HRB) due to the increased complex nature of a HRB warrant applications and the need for improved verification and oversight capabilities of such buildings and applications.

There was a widespread consensus (88%) that building warrant fees should be set at a national level.

While many believed there would be no impact on people with protected characteristics or on socio-economic inequalities, respondents suggested the proposals could increase the financial burden on individuals and businesses wishing to undertake building work and increase the workload for building services.

Through the Verity House agreement, the Scottish Government committed to continuing discussions with COSLA and other key stakeholders on any potential future devolution of building warrant fees.

From the consultation feedback, it is not the intention of the Scottish Government to fund the statutory building standards services through building warrant fees. The Scottish Government will continue to engage with stakeholders through our Working Groups on this matter.