Consultation outcome

Consultation on devolving powers for a Scottish Building Safety Levy

From:: HM Treasury
Published: 8 January 2024
Last updated: 19 April 2024 — See all updates

Download the full outcome

Response to the Consultation on devolving powers for a Scottish Building Safety Levy: A joint consultation response by the UK and Scottish Governments

Ref: ISBN 978-1-917151-12-2

PDF, 156 KB, 15 pages

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Detail of outcome

In its 2023-24 Programme for Government, the Scottish Government announced its intention to seek the transfer of powers to introduce a new tax in Scotland, equivalent to the UK government’s Building Safety Levy for England.

A consultation seeking views on the devolution proposal, including any evidence to inform consideration of the potential for the new tax to create or incentivise economic distortions and arbitrage within the UK, closed on February 19th, 2024.

This consultation response summarises the views and evidence received, provides the UK and Scottish governments’ analysis and response, and sets out next steps.

Following this joint consultation with the Scottish Government, the UK government will propose legislation to devolve powers to the Scottish Parliament so that the latter can legislate for a Scottish Building Safety Levy.

Original consultation

Consultation description

The UK and Scottish Governments face common challenges around remediating historical building safety defects, such as defective cladding, and are both committed to ensuring that the housing sector makes a fair contribution towards the associated costs.

The UK government has announced its intentions to introduce a Building Safety Levy in England. The Levy will apply, subject to any agreed exemptions, as a tax on residential buildings requiring building control approval in England, with revenues being used to fund building safety remediation in England, such as those affected by unsafe cladding.

This consultation seeks views on the devolution proposal, including any evidence to inform consideration of the potential for the new tax to create or incentivise economic distortions and arbitrage within the UK.

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