Scotland announces plans for a new building safety levy to address cladding issues

As reported by the Scottish government, the UK Parliament has passed legislation allowing Scotland to impose a new tax specifically aimed at addressing building safety concerns.

This initiative follows similar measures already adopted in England through the Building Safety Act.

The Scottish Building Safety Levy will target the construction of new residential buildings.

The funds collected will be dedicated to the Scottish Government’s cladding remediation programme, aiming to tackle the ongoing issues with unsafe building materials.

Statements from government officials

Deputy First Minister and Finance Secretary Shona Robison emphasized the need for further action despite the progress made by developers.

Robison said: “We are determined to safeguard people living in buildings with unsafe cladding.

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

She added that the new levy would ensure developers contribute fairly to remediation efforts in Scotland, mirroring the UK Government’s expectations for England.

“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,” Robison stated.

Future steps and public consultation

The Scottish Government plans to consult with the housebuilding sector to ensure the levy aligns with their ongoing New Deal for Business and Framework for Tax.

This collaboration aims to fine-tune the levy to effectively contribute to public safety without stifling economic growth.

The government’s consultation will also seek input on potential economic distortions or arbitrage opportunities that the new tax might create within the UK, ensuring a balanced approach to this new fiscal measure.