Scottish Government consultations

We held a public consultation seeking views on the Scottish Government's proposals to mitigate the two-child limit in Universal Credit in Scotland. The consultation opened on 21 February 2025 and closed on 18 April 2025. 

We asked four questions about:

• whether Social Security Scotland should deliver payments to mitigate the two-child cap in Scotland;
• whether the powers at s79 of the Social Security (Scotland) Act 2018 to top-up Universal Credit should be used to mitigate the two-child cap;
• whether payments to mitigate the two-child cap should be disregarded as income by the UK Government; and
• any potential impacts of the proposed approach outlined in the consultation on different groups of people, communities and businesses.

We also held a workshop with people who have lived experience of the two-child limit on Universal Credit to supplement the online consultation.

A total of 267 responses were received. Most consultation responses were from individuals, with 42 responses from organisations. A range of organisations responded including third sector organisations, local authorities and representative bodies. 

During the workshop event attendees shared their answers to the consultation questions. Their insights were considered alongside the formal consultation responses.

We commissioned an independent research company, Wellside Research, to conduct the analysis of the consultation responses and their analysis report has been published on the Scottish Government website. The analysis report is also available in easy read format. We have published the consultation responses, where permission has been given to do this, on Citizen Space.

The Scottish Government is committed to effectively scrapping the impact of the two-child cap in 2026. We are working at pace to begin payments as soon as possible.

In response to requests to consider a general power of competence for local authorities in Scotland, we launched a consultation to seek views on:

• The perceived barriers, risks and limitations of existing legislative powers.
• What functions, beyond those already conferred by statute, local authorities in Scotland wish to pursue and whether new legislation or amendments to existing legislation would best deliver those additional functions. 
• The continuing reluctance in England, Wales and Northern Ireland to rely on a General Power of Competence and how best to ensure the effective framing of similar legislative powers in Scotland to provide clarity and confidence to local authorities in the use of such powers.
• How best to ensure that legislation contains the right balance of flexibility and control to mitigate risks arising from greater financial freedoms.

The consultation proposed various approaches for consideration, which reflected the possibility of:

1. retaining the existing statutory framework without change,
2. amendments to widen the scope of existing legislative powers whilst retaining appropriate controls to mitigate risk,
3. introducing a General Power of Competence.

The consultation elicited a wide range of divergent views. A clear preference was expressed for a general power of competence by some, whilst others felt that specific rather than general powers would best serve the public interest whilst providing the flexibility and greater certainty sought by local authorities to pursue innovation without fear of legal challenge. Some felt that a general power of competence or amendments to existing legislation could deliver the greater freedoms sought by local authorities. Some respondents did not support the introduction of a general power of competence or amendments to existing legislation, and highlighted the risks of removing existing safeguards designed to protect public funds and the provision of public services.

We have carefully reviewed the range of views expressed. Options will now be explored to deliver an appropriate balance between the aspirations of Local Government for greater local empowerment and confidence in innovation whilst providing public assurance that appropriate safeguards are in place to mitigate financial risk and ensure continued prioritisation and delivery of core public services.

We sought views on the proposed administration regulations for the Scottish Aggregates Tax (SAT). Views were also sought on a range of issues to inform relevant impact assessments and ensure that these are fully considered. The consultation opened on 24 January and closed on 21 March 2025. 

Five responses to the consultation were received from various stakeholder groups. Two of those responses were received from the SAT expert advisory group members prior to the launch of the consultation. For the purposes of the analysis, the two responses from SAT advisory group members have been included, and respondents have been broadly categorised. One response was received from a primary aggregates industry body, one response was received from a waste and resource management body, and three responses were received from tax/accountancy/legal bodies. 

Most respondents agreed with the majority of the provisions in the draft administration regulations and impact assessments. However, it was noted that there will be an additional administrative burden on taxpayers due to the level of information being requested in the aggregates invoice and tax return. A key theme in the responses was that the definition of an aggregates invoice (as stipulated in the draft secondary legislation) would cause problems for the primary aggregates industry, and that this should be amended. 

Respondents also sought further clarity on the following provisions: 

• Penalties for failure to use a weighbridge/specified method  

• Group registration 

• 30-day tax return period  

• Time-limit for claims 

Stakeholder feedback on the partial Business and Regulatory Impact Assessment (BRIA) proposed:  

• Greater reference to the research being undertaken via ClimateXChange, a centre for expertise on climate change, to better understand the evidence base on the role of recycled aggregates. 

• Further detail on the compliance costs to affected businesses.  

• An update on the assessment of cross-border complexities. 

• Information on the number of visits undertaken and the methodology used to select which operators were approached / visited. 

• Post-implementation review: further information is needed on what intervals the reviews will take place, how these will be carried out, and the level of detail to assess effectiveness of SAT. 

The material and views gathered through the consultation activities have informed the development of SAT policy in advance of the proposed introduction date of 1 April 2026. 

The Scottish Government has carefully considered the responses to the consultation and amendments have been made to regulation 2 on the definition of an aggregates invoice. Other amendments were made to correct minor spelling mistakes and referencing errors within the regulations. 

Further clarity has been provided in the consultation analysis report to answer stakeholder queries on a number of issues highlighted. 

The Business and Regulatory Impact Assessment has also been revised to include further information, as highlighted by respondents, and to answer queries raised.