Building standards - building warrant fee model: research project
The purpose of this study is to develop proposals and a model that can be used to deliver a funding model that is flexible and can be adjusted to allow changes to building warrant fees in Scotland.
Footnotes
1 Measured by the building cost index.
2 Q4 2017 to Q4 2022.
3 The 2017 fees increase incorporated £1.5 million for BSD activities related to verification.
4 Verification staff costs are almost 88% of total building standards costs in 2021/22.
5 Public sector average earnings increase of 5.4% between January 2022 and January 2023. Public sector average earnings change between January 2017 and January 2022 is 3.1%. An average of 3% has been adopted for future years.
6 It is assumed that every local authority would be audited once during the three-year period and that there will be enhanced monitoring of the strengthened building standards system. An allowance of £300,000 per annum has been incorporated into the costs required for BSD to facilitate this process.
7 12 of 16 responses.
8 Plan checking is assumed to be 70% of a verifiers time and inspection/reasonable inquiry is 30%.
9 Based on an overhead uplift of 30%.
10 13 of 16 respondents.
11 The difference between total staff costs and verification staff costs.
12 Inflation between 2017 and 2022 in building cost index.
13 Based on forecast changes in building cost index.
14 The average value of work for a building warrant is around £70,000. This would achieve a £100 discount for an approved certificate of design and £35 for an approved certificate of construction. Certification discounts have been calculated for each of the five certification schemes by assuming that the average number of certificates each year is the same as the five year average (2017/18 to 2021/22) and that the value of the discount increases in line with inflation.
15 The average value of work for a building warrant is around £70,000. This would achieve a £100 discount for an approved certificate of design and £35 for an approved certificate of construction. Certification discounts have been calculated for each of the five certification schemes by assuming that the average number of certificates each year is the same as the five year average (2017/18 to 2021/22) and that the value of the discount increases in line with inflation.
16 KPO5 return for 2021/22.
17 See Table 4.2.
18 Building Standards, Planning and Economic Development.
19 Costs that can be charged directly to the building regulations chargeable service.
20 Staff costs and other direct costs.
21 Edinburgh, Highland, North Lanarkshire, Renfrewshire, South Ayrshire.
22 The 1,568 HRBs in paragraph 6.3.4 are estimated to generate income of £11 million using current fee rates which is 33% of income (excluding amendment and late completion certificate income).
24 Scottish Government (2021) Short Term Lets in Scotland Licensing Scheme – Part 2. Supplementary Guidance for Licensing Authorities, Letting Agencies and Platforms, June 2021.
25 Scottish Government (2012) Licensing of Houses in Multiple Occupation: Statutory Guidance for Scottish Local Authorities, August 2011, updated January 2012.
26 The Chartered Institute of Public Finance & Accounting (2010) Local authority building control accounting – Guidance for England and Wales, Fully revised 2nd Edition 2010.
27 Dumfries and Galloway, Highland.
28 COSLA response to Scottish Government’s Resource Spending Review Framework consultation, March 2022.
29 Annex 2: calculating costs - Scottish Public Finance Manual - gov.scot (www.gov.scot)
Contact
Email: buildingstandards@gov.scot
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