Scottish Building Safety Levy: consultation

Part C: Impacts

13. Impact Assessments

In accordance with legislative requirements, a number of Impact Assessments will be completed as part of work to develop the Bill.

14. Business and Regulation

The Scottish Government recognises that a Scottish BSL on new residential buildings would place a new financial and compliance burden on homebuilders, who would be required to assess liability, submit returns and pay tax on new residential developments they are responsible for. In addition to those homebuilders who will be liable to pay tax, there may be indirect impacts to businesses that work in the housing supply chain, including contractors, tradesmen and estates services. Other parties that could see impacts from a Scottish BSL include Revenue Scotland and local authorities (as building verifiers).

In addition, it is possible that a Scottish BSL on new residential buildings would have an impact on the residential construction sector more widely. An additional tax on homebuilders could impact the following:

• house prices of new build properties
• the number of new build properties completed
• changes in the number of planning applications, building warrants and completion certificates
• changes in land values
• changes in revenues from property-related taxes, including RPDT, LBTT and Council Tax

The Scottish Government is therefore seeking views from a wide range of stakeholders on the potential impact of a Scottish BSL on the sector as a whole.

In developing proposals for legislation, a Business and Regulatory Impact Assessment (BRIA) analyses whether a policy is likely to increase or reduce the costs and burdens placed on businesses, the public sector, voluntary and community organisations. We have published a Partial BRIA alongside this consultation, to assist respondents in considering the estimated costs, benefits and risks to the introduction of a Scottish BSL.

Your comments will help support work on the Final BRIA, which will be published at the same time as the proposed Bill. Secondary legislation that flows from the proposed Bill's primary powers will be subject to a BRIA and consultation at that time as necessary.

Question 23

Do you have any information which could inform any final Business and Regulatory Impact Assessment (BRIA) relating to the Bill?

15. Child Rights and Wellbeing

The Articles of the UN Convention on the Rights of the Child and the child wellbeing indicators under the Children and Young People (Scotland) Act 2014 apply to all children and young people up to the age of 18, including non-citizen and undocumented children and young people.

We have considered the proposed provisions against the requirements of a Children's Rights and Wellbeing Impact Assessment and concluded that there will likely be no impact – direct or indirect – of a Scottish BSL on children and young people.

However, this assessment will be revisited following the public consultation, to ensure that any issues raised are taken into consideration.

Question 24

Are you aware of any examples of particular current or future impacts, positive or negative, on young people, (children, pupils, and young adults up to the age of 26) of any aspect of the proposals in this consultation?

16. Environment

The Environmental Assessment (Scotland) Act 2005 requires those preparing public plans and programmes to undertake a Strategic Environmental Assessment (SEA) if they are likely to result in significant environmental effects when implemented.

At this stage it is our view that, as per Section 7 of the 2005 Act, the policy around a Scottish BSL would be exempt from the 2005 Act as it is likely to have no or minimal effects on the environment.

It is our intention to submit a notification, as per Section 7(3) of the 2005 Act, following the consultation. This approach is to help ensure our opinion on the likely environmental effects does not shift as a result of the consultation.

Question 25

Are you aware of any examples of potential impacts, either positive or negative, that you consider any of the proposals in this consultation may have on the environment?

17. Equality

In developing proposals for a Scottish BSL, the public sector equality duty requires the Scottish Government to pay due regard to the need to:

• eliminate discrimination, victimisation, harassment or other unlawful conduct that is prohibited under the Equality Act 2010;
• advance equality of opportunity between people who share a protected characteristic and those who do not; and
• foster good relations between people who share a relevant protected characteristic.

These three requirements apply across the 'protected characteristics' of:

• age;
• disability;
• gender reassignment;
• marriage and civil partnership;
• pregnancy and maternity;
• race;
• religion and belief;
• sex and sexual orientation.

We have considered the proposals against the needs of the general equality duty as set out in section 149 of the Equality Act 2010, and have considered whether the measures could constitute direct and/or indirect discrimination.

Based on present evidence, we do not assess that a Scottish BSL will have any impact on those who share a protected characteristic. This assessment will be updated following the public consultation, and associated engagement, to reflect any new evidence.

Question 26

Are you aware of any examples of how the proposals in this consultation may impact, either positively or negatively, on those with protected characteristics (age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation)?

18. Fairer Scotland Duty

The Fairer Scotland Duty is set out in legislation in Part 1 of the Equality Act 2010 and came into force in Scotland from April 2018. It requires Scottish Ministers and named public bodies to actively consider what more can be done to reduce the 'inequalities of outcome' caused by 'socio-economic disadvantage' when making 'strategic decisions'.

After consideration, our view is that a Scottish BSL will not directly impact on those experiencing socio-economic disadvantage and will be paid only by aggregates producers.

However, this assessment will be revisited following the public consultation, to ensure that any issues raised there are addressed.

Question 27

Are you aware of any examples of potential impacts, either positive or negative that you consider any of the proposals in this consultation may have on groups or areas at socio-economic disadvantage (such as income, low wealth or area deprivation)?

19. Island Communities

The Islands (Scotland) Act 2018 provides for a duty on Scottish Ministers and other relevant public bodies that they must have regard to island communities in exercising their functions and in the development of legislation.

Section 13 of the 2018 Act obliges the Scottish Ministers to prepare an Islands Communities Impact Assessment (ICIA) in relation to legislation which, in their opinion, is likely to influence an island community that is significantly different from its effect on other communities in Scotland.

Question 28

Are you aware of any examples of how the proposals in this consultation might impact, positively or negatively, on island communities in a way that is different from the impact on mainland areas?