SFHA has submitted a response to the Scottish Government consultation on the introduction of a new tax in Scotland - the Buildings Safety Levy (BSL). 

This proposed levy would be applied as an additional charge on new residential development, to be paid by housebuilders.  Revenue raised through the tax would support the Scottish Government’s work to remediate cladding in existing residential buildings. The proposals are similar to those being proposed for the rest of the UK.

It is proposed that affordable housing delivered through the Scottish Government’s Affordable Housing Supply Programme (AHSP) should not be subject to the levy.

SFHA supports the introduction of a Building Safety Levy, which we believe is a fair way to generate revenue to fund the Scottish Government’s cladding remediation programme – alongside Barnett consequentials and direct remediation by developers.

Key elements of our response:

  • We agree that homes delivered through the AHSP should be removed from the Scottish Building Levy.  We also believe that all affordable homes delivered by RSLs or their subsidiaries should be exempt from the levy – not just those delivered through the AHSP.
  • We support the proposal to remove SME developers from the charge as they may be disproportionately impacted by the levy.  There is a particular need to ensure SMEs that are critical to rural economies and communities are not adversely affected by the proposed tax.
  • We believe that developments in rural areas and islands should be exempt in recognition of particular challenges facing these areas.
  • We believe that wheelchair accessible homes should be exempt on the basis of lack of supply.

You can view our full response here