Building (Fees)(Scotland) Amendment Regulations 2025: Fairer Scotland Duty assessment

The Building (Fees)(Scotland) Amendment Regulations 2025: Fairer Scotland Duty Assessment

Title of policy/practice/ strategy/legislation etc.

The Building (Fees)(Scotland) Amendment Regulations 2025

Lead Minister

Paul McLennan, Minister for Housing

Lead official

Cameron Murdoch, Policy Lead

Directorate: Housing

Division: Building Standards

Team: Development Unit

Stage 1 – Planning

Title

The Building (Fees)(Scotland) Amendment Regulations 2025.

Policy aim

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.

Background and reasoning

Following the fire at Grenfell Tower in 2017 and the construction failings of Edinburgh School buildings, a Ministerial Working Group was set up to review building and fire safety regulatory frameworks. The Group commissioned two Expert Review panels; Compliance and Enforcement and Fire Safety, that subsequently published their own recommendations. The Building Standards Futures Board was set up at the beginning of 2019 to provide guidance and direction on the development and implementation of the recommendations made by the Review Panels. The Verification Delivery Model was identified as an area that required strengthening, resulting in the formation of the Verification Delivery Model Working Group (DMWG) that oversees the Verification Delivery Model workstream.

Building warrant fees in Scotland were increased on 1 April 2024 through the Building (Fees) (Scotland) Amendment Regulations 2024, part of a three year model to increase fees annually, providing additional resources to verifiers to facilitate the strengthening of the system, implemented by the Building Standards Futures Board Programme. This intended increase will be year 2 of the three year model of the policy. Fees are set on a sliding scale and are based on the ‘value of work’ of the project being undertaken.

A proportion of the fee increase has been used to fund the Scottish Building Standards Hub (SBSH) formally launched in May 2024. The SBSH is one of the outcomes of the Verification Delivery Model workstream and one of the recommendations from the Expert Review Panels following Grenfell. The SBSH strengthens the system by providing support and assistance to all 32 local authorities and the wider construction industry by providing access to expertise and specialist advice in fire engineering solutions, fire safety, structural engineering and energy and environmental engineering. It also provides 32 verifiers access to learning and development opportunities and promotes the growth of workforce through universities, colleges and Apprenticeship programmes.

Building Standards Division is undertaking a broad range of work to strengthen the building standards system in Scotland. This includes ensuring verifiers are resourced appropriately to provide a strengthened building standards service and ensuring the development of safe and compliant buildings in Scotland.

Modelling carried out in 2022-23 by Optimal Economics has identified building warrant fee levels for 2025-26 to deliver appropriate resources to verifiers.

Following the fee increase from 1 April 2024 and the introduction of the three year fee model, verifiers are expected to use funds to invest in their teams and departments to strengthen their service. BSD have implemented a reporting and monitoring process for Local Authority verifiers, data gathered is being used to inform the decision making process to increase fees for years 2 and 3 of the model and identify other activity in the coming years.

Timeframe

The Fairer Scotland Duty Assessment has been conducted by the Building Standards Division (BSD) Verification Delivery Model Team and the wider BSD Development Unit. The assessment and its results will be published on the Scottish Government website as soon as agreement and approval of the results has been provided.

Stage 2 – Evidence

In 2023 a public consultation was launched to gain opinion on the decision to increase building warrant fees over a three year period with an annual increment. The consultation was also used to further identify potential inequalities experienced by socio-economically disadvantaged groups, through implementation of the new policy to amend fees. As this policy is stage 2 of the three year model, no newly identified effected groups have been found that differ from the results of the Fairer Scotland Duty assessment 2023.

The contractor, Optimal Economics, undertook a small research project to confirm the fee rates for April 2025. To support this BSD have implemented a reporting and monitoring process for Local Authority verifiers. Data gathered is being used to inform the decision making process to increase fees for years 2 and 3 of the model and identify other activity in the coming years. The reporting project will be used to inform Ministers and allow BSD to continue with the legislative process to increase fee rates in 2025. As such, this exercise will feed into the analysis of the Fairer Duty assessment, highlighting strengths and weaknesses local authorities may identify, due to fee increases.

Analysis of the 2023 assessment results and aims and outcomes of year-2 of the policy, it is identified that the proposed increases to building warrant fees will have minimal impact on the inequalities of outcome caused by the socioeconomic disadvantages experienced by people in Scotland. All proposed increases in fees will be small in proportion to the overall fee payable and will be negligible in comparison to the costs of any resulting building works.

Any impact is considered minimal as evidenced below:

• Low incomes. It is understood an increase in building warrant fees will lessen the likelihood of those experiencing low incomes from jobs and/or other means to be able to afford to build/extend/convert their property and/or homes. However, the increase in building warrant fee will be negligible to any resulting building works costs and small in comparison to the total fee payable. It is unlikely those in this position will be undertaking significant building works. Increasing fees will not notably exacerbate the inequalities outcome experienced by those with low incomes.
• Low/no accumulated wealth. It is understood an increase in building warrant fees will lessen the likelihood of those experiencing low accumulated wealth/no wealth to afford to build and/or extend their own property and/or homes. However, the increase in building warrant fee will be negligible to any resulting building work costs and small in comparison to the total fee payable. It is unlikely those in this position will be undertaking significant building works. Increasing fees will not notably exacerbate the inequalities outcome experienced by those with low or no accumulated wealth.
• Area Deprivation. Building warrant fees in Scotland are set at a national level and are the same across all geographical areas. Increasing building warrant fees will not exacerbate the inequality of outcome for those living in areas of deprivation. The same increase to building warrant fees will be applied across Scotland.
• Socio economic background. An increase in building warrant fees should not increase the inequalities of outcomes by those from different socio economics backgrounds.
• Material deprivation. It is understood an increase in building warrant fees will lessen the likelihood of those experiencing material deprivation to be able to build/extend/convert their own home and/property. However, any increase in fees will not exacerbate the inequalities of outcome those with material deprivation will faces such as skills attainment, or lower healthy life expectancy.
• An increase in building warrant fees will have little to no impact on inequalities of outcome faced by those at a socio economic disadvantage such as skills attainment, lower healthy life expectancy, lower quality or less secure work and the greater chance of being a victim of crime.

Involving communities of interest in the process to change the policy and increase building warrant fees on a three year basis was implemented in 2023 through the public consultation which gained a high level of support to increase fees going forward. As the year 2 increase was part of the agreed model from the 2023 engagement, communities of interest have been consulted. Furthermore, BSD continue to have open communication with local authorities through engagement sessions to discuss the fee model.

Stage 3 – Assessment and improvement

Overall, it is not considered that the proposed increase to building warrant fees will impact on the inequalities of outcome caused by socio economic disadvantage. Inequalities of outcome relate towards areas such as poorer skills and attainment, lower healthy life expectancy, lower paid work, greater chances of becoming a victim of crime and less chance of being treated with dignity. Therefore, it is difficult to change this policy and its proposed impact in such a way that would lead to a reduction in the inequalities identified. By reducing building warrant fees or by not applying increases these actions are unlikely to affect the identified outcomes significantly in any way. Assessment of the proposed changes has included consideration of other impacts covered in the section above.

It is considered that the positive outcome of a strengthened building standards system with increased compliance will lead to improved buildings that are sustainable, efficient and safe for everyone.

No building standards legislation currently exists in the context of inequalities of outcomes experienced by socio economically disadvantaged groups, which can be changed or adapted to reduce the impact of this proposal.

There are however instances where there is no building warrant fee applied in relation to works to alter or extend the residence of a person with a disability, provided the works are solely for the benefit of that person. The current proposals will not impact or change this exception in fees.

Stage 4 – Decision

A full assessment has been carried out as this policy constitutes a strategic decision and it is necessary to determine the impact on the inequalities of outcome faced by socio economically disadvantaged people in Scotland. Carrying out this assessment has determined that any increase in building warrant fees will not further impact the inequalities of outcomes experienced and that any increase will be negligible to the resulting building works cost and total fee payable.

In summary, the aim of this policy is to increase building warrant fees. The increase in fees will be used to continue to strengthen the building standards system in Scotland which is designed to deliver sustainable, efficient and safe buildings and support changes being introduced through the work of the Building Standards Futures Board to increase compliance with building regulations leading to improved building safety for everyone. In developing this policy the Scottish Government is mindful of the impact this could have directly and indirectly on the inequalities faced by those socioeconomic disadvantaged people in Scotland. A Fairer Duty Scotland Assessment highlights that due regard has been applied.

As this fee increase is part of a three year model to increase fees annually, consideration of the impact on inequalities of outcome caused by socio-economic disadvantage will always be considered before any planned increases. No changes to the proposed increases are planned for the 2nd year of the model, 2025-26.

Sign off of the Fairer Scotland Duty Assessment

Name: Stephen Garvin

Signed:

Job title:

Head of Building Standards Division