The Building (Scotland) Amendment Regulations 2024: Island Communities Impact Assessment

Consultation

33. Following consultation with stakeholders the UK Government decided to implement a policy to mandate gigabit-capable connectivity (up to a cost cap) through building regulations limiting the application to England only.

34. The UK Government launched their technical consultation New Build Developments Consultation: Delivering Gigabit-Capable Connections on 21 December 2021 which closed on 28 February 2022^[6]. This consulted on proposals for developers to provide for gigabit-ready physical infrastructure installation in all new build homes. The consultation outcome proposed that the installation of a gigabit-capable connection during the construction of new homes subject to a cost cap of £2,000 per premise.

35. Within the Programme for Government 2023-2024, the Scottish Ministers made a commitment to progress the Rural Delivery Plan, setting out how all parts of the Scottish Government are delivering for Scotland’s rural, coastal, and island communities – with a particular focus on transport, housing, social justice, repopulation, digital connectivity, and economic development. The legislation is designed to ensure that any new homes built in the hardest to reach places will receive a broadband connection.

36. In September 2023, the Scottish Government launched the consultation New Build Developments: Delivering Gigabit-capable Connections^[7] seeking views on amending the Building Standards system to mandate gigabit-capable connectivity in new build developments up to a cost cap of £2000 per premise to the developer. Where this cap was exceeded a requirement to install a connection using the ‘next best’ available technology available within the cost cap would exist in addition to installing the passive infrastructure required to facilitate a gigabit-capable connection at a later date.

37. In general, the majority of individuals, organisations and local authorities who provided a response to the consultation agreed with our proposals. The consultation received two responses from local authorities listed within the schedule of the Islands (Scotland) Act 2018. These were from Argyll and Bute Council and Comhairle nan Eilean Siar.

38. Both Argyll and Bute, and Comhairle nan Eilean Siar agreed that the proposals within the consultation would ensure help that gigabit-capable physical infrastructure would be placed in a location to connect to a network distribution point and agreed with the inclusion of best practice advice for within individual dwellings to be included in the guidance.

39. Responses from both councils also pointed towards the importance of alternative technologies in delivering the ‘next best’ connectivity. Fixed Wireless Access (FWA) and Low Earth Orbit (LEO) satellite would be in a position to offer faster connectivity than the current Universal Service Obligation (10 Mbps).

40. Argyll & Bute Council responded to the consultation recognising that the aims will support modern sustainable living, business connectivity and hybrid working. A concern was however raised that the increased costs of a development could prevent very marginal developments from happening. A concern was also raised that it may be more difficult to for Registered Social Landlords to meet the Scottish Government benchmark.

41. Both local authorities raised challenges around identifying two suitable network operators to approach for quotes to provide a gigabit-capable connection in areas where provision in a given area is from one operator, or no gigabit-capable infrastructure is available to support a connection.

42. It was also raised that more clarity should be made available to support building standards verifiers to determine and accept a completion certificates where alternative technologies were used to provide a connection.

29. Comhairle Nan Eilean Siar in their response commented that consideration should be given to alternative technologies such as fixed wireless access or satellite equipment that may provide better connectivity than a Universal Service Obligation connection.

Assessment and analysis

30. We recognise that the cost per premises to deliver fixed line gigabit-capable connectivity to island communities will be disproportionately higher than on the mainland resulting in fewer premises being delivered commercially. Scottish Government interventions continue to seek to improve the levels of connectivity across island communities.

31. The same requirements and cost cap will ensure that developments within island communities apply the same standard to developments and apply for exemptions in the same way.

32. The cost cap aims to ensure that costs remain proportionate and this addresses any issues and concerns that the new requirements on housebuilders would prevent new homes being built.

33. Where it is not possible to provide gigabit-capable connectivity at the outset within the cost cap there is a requirement to provide the next best technology (usually a superfast connection) and the passive infrastructure (e.g. ducts) to facilitate the retrospective deployment of gigabit-capable services at a later point.

34. The requirement to provide the passive infrastructure required to support a gigabit-capable connection will have a further exemption for those instances where there is no realistic prospect of a future connection to a gigabit-capable network.

35. Discussions with network operators have indicated that the infrastructure required to support a fixed line connection below gigabit-speeds (e.g. fibre to the cabinet) would ordinarily include passive infrastructure (e.g. ducts or poles) that would be re-used at the point a gigabit-capable connection was made available lowering the cost of the passive infrastructure requirement in these cases.

36. As the proposals are technology neutral it is recognised that alternative technologies may be more appropriate to deliver the ‘next best’ technology. The Digital Connectivity Division maintains a Single Point of Contact (SPoC) Network with representatives from each of Scotland’s 32 Local Authorities and will work to raise awareness of the alternative technologies that are available for building standards verifiers to consider.

37. Scottish Government will work with the SPoC network to raise awareness of coverage areas of fixed line networks to assist in identifying and verifying two suitable network operators have been approached as coverage of fixed line gigabit-capable coverage increases through commercial and publicly subsidised investment in the R100 and Project Gigabit programmes.

ICIA Outcomes and adjustments of proposals

38. The nature of building regulations is to impose change on existing practice and process. This is applied at a national level to address issues of national relevance affecting new development. Review is an opportunity to reinforce the challenges of delivering change but also note the flexibility that is intended to be inherent in the building standards system.

39. Following assessment, there is no proposal to fundamentally alter the nature of proposals as the outcomes they seek to deliver are equally as important in island communities and in other communities. To not apply the same requirements and exemptions to island communities would carry a risk that each development was not considered against the availability of, or likelihood of benefitting in the future from, gigabit-capable connections.

40. Development on island communities is subject to a different set of risks and constraints compared to many other parts of Scotland. These relate mainly to the challenges arising from location which lead to higher costs in housebuilding, more limited options/solutions and risks of disruption to projects.

41. By maintaining the same cost cap of £2,000 per premise it ensures that the requirements are clearly defined on developers on island communities. Developers can choose to exceed the cost cap where they believe it commercially viable to work with a network operator to deploy gigabit-capable connectivity.

Implementation and Publication

42. It is considered that the proposed changes can be progressed effectively without a disproportionate effect on island communities.

43. Engagement has identified that there is a need to support aspects of the process for island communities around the availability of network operators in each area. This will be developed as a theme in ongoing work with the construction sector and local authorities on the implementation of the 2024 regulations.

ICIA completed by:

John Fagan

Digital Connectivity Division

23 August 2024

ICIA Approved By:

Robbie McGhee

Deputy Director

Digital Connectivity Division

23 August 2024