Significant funding to fix building safety issues in Scotland
will be unlocked thanks to new legislation.
The Building Safety Levy Bill, which has been approved by the
Scottish Parliament, will see a tax charged on the construction
of certain new residential properties from April 2028.
This measure is in line with equivalent legislation in England.
The levy aims to raise £450 million over 15 years to help fund
work to fix residential buildings with unsafe cladding which have
no linked developer.
Public Finance Minister said:
“The Scottish Government has stepped in to marshall the necessary
work to protect and repair Scotland's existing housing stock and
to ensure it is properly funded.
“Cladding remediation is set to cost between £1.7 billion and
£3.1 billion over the next 15 years. To ensure Scotland's public
finances are sustainable, it is right that a contribution to
these costs is made by the residential property development
industry, just as they will be doing in England.
“All revenues raised will be spent on efforts to rehabilitate
existing stock, which will improve safety for residents and
homeowners and support the alleviation of the housing emergency.”
Background
Building Safety Levy (Scotland)
Bill
Since Bill introduction in June last year, the Scottish
Government has taken a number of decisions intended to support
the industry. These include:
- deferral of the introduction of the levy to April 2028
- support for an amendment to increase the annual levy-free
allowance per taxpayer
- Introduction of provisions which will tie the use of the
funds raised to the operation of the Cladding Remediation
Programme
The legislation includes provisions to exempt certain types of
development, including social and affordable housing.
The Bill sets out a provision for a regular review period for the
levy, which will be an opportunity to consider the revenue target
in light of the prevailing housing market and wider economic
conditions, as well as the emerging position on the scale and
profile of spending on our cladding remediation work.
Estimated costs for the Scottish Government's cladding
remediation programme: Cladding remediation: capital
spend forecasting - gov.scot
