Heat in Buildings Bill consultation: Fairer Scotland impact assessment

Stage 4 - Decision

39.3 This decision stage allows Deputy Directors (or above) to consider the assessment process from Stages 2 and 3, agree any changes to the policy, proposal or decision and confirm that due regard to meeting the Fairer Scotland Duty has been given in this case.

What changes, if any, will be made to the proposal as a result of the assessment? Why are these changes being made and what are the expected outcomes?

40.1 During the development of proposals, we have tested them against the principles of fairness and proportionality, feasibility, and affordability. As a result we have refined the initial scope of the proposed regulation in order to mitigate the potential direct impact on home owners. We have, at this stage, decided that it would not be proportionate or fair to use potential triggers which may have resulted in individuals having to use their own funding to carry out the necessary changes in a more rapid timeframe, which we concluded was unfair and unachievable for many. To provide appropriate levels of flexibility allowing for individual circumstances to be properly taken into account, the proposals include options for exemptions, reflecting the need for fairness.

40.2 These changes will result in a more even-paced trajectory towards the 2045 target for the building sector, but will present a credible and just path on this journey which will be supported by our other work on delivery and just transition. Our proposals for regulation-making powers within the proposed Heat in Buildings Bill will allow Scottish Ministers over the period to 2045 to consider when it may be appropriate to introduce further regulations – when it is fair and proportionate to do so, taking account of the anticipated growth and normalisation of the clean heat market. The Scottish Parliament will be afforded full scrutiny of any such regulations and will be able to determine whether it is fair and just for them to be introduced at points in future on the journey to 2045. This gives assurance that regulation-making powers can only ever be used in a fair and proportionate manner. Our proposal that all homes must end their use of polluting heating after 2045 means that Scotland's building sector is not at risk of failing to achieve net-zero.

40.3 The consultation is not the final stage of this process, and is a genuine opportunity to listen to feedback and adjust our proposals accordingly. We will feed in the results from the consultation into the design of the final bill and it will come under considerable scrutiny on its passage through Parliament.

If no changes are proposed, please explain why.

42.1 Changes have been included to ensure the proposals are fair for the people of Scotland.

Sign off of the Fairer Scotland Assessment

Name: Sue Kearns

Job title: Deputy Director, Heat in Buildings: Policy & Regulation Division