Scottish government to introduce its own Building Safety Levy

Scottish housebuilders could be hit with new taxes to fix building safety issues, after the UK government agreed to devolve new powers. 

The proposed Scottish Building Safety Levy, which will fund the region’s cladding remediation programme, will apply to the construction of new residential buildings, mirroring the measures brought into force in England under the Building Safety Act.  

Transfer of these powers has been an established part of the Scottish Government’s current government agenda, as the devolved parliament cannot legislate for new national taxes itself. 

After a request made under Section 80B of the Scotland Act 1998 and a joint consultation which sought views on the proposal, the Westminster government has agreed to legislate to devolve the necessary powers to the Scottish parliament. 

“We are determined to safeguard people living in buildings with unsafe cladding,” said Shona Robison, deputy first minister and finance secretary.  

“I know that developers share this determination and have made significant progress to date. 

>> The unanswered questions about the £3bn building safety levy 

“However, it is clear more needs to be done and these powers will ensure that developers make a fair contribution to address building safety defects in Scotland, just as the UK Government is asking them to do in England. I welcome the UK Government’s collaborative approach on this issue.  

“It is important that we also continue working side by side with developers. To that end, and in line with our New Deal for Business and Framework for Tax, we will now liaise with the sector to ensure this levy best contributes to our mission of keeping people safe.” 

Details of how the levy will operate will be developed through consultation and liaison with the UK Government and housebuilding sector.