Scottish Building Safety Levy: consultation on proposals

We sought your views on the introduction of a Scottish Building Safety Levy (SBSL) to provide funding for the Scottish Government’s Cladding Remediation Programme. The consultation opened on 23 September 2024 for a period of eight weeks, closing on 18 November 2024. The consultation invited responses to a range of open and closed questions on aspects relating to the SBSL, including the strategic context for the tax, scope, calculation, operational considerations, and impacts. 

The consultation received a total of 78 responses, mostly from property developer organisations and other housing/property stakeholders. The consultation was accompanied by a programme of engagement with industry stakeholders and prospective taxpayers, and through an Expert Advisory Group. 

Most responses were from those operating within the residential property development sector who were opposed to the introduction of the SBSL, with concerns raised that this would place a further cost burden on the housebuilding industry which is already contributing towards the cost of cladding remediation. Responses emphasised the need to consider the impact of the SBSL on housebuilding within a wider context of cumulative impacts and regulation on the sector, and of the housing emergency and the importance of building new homes.  

There was strong support from respondents to mitigate impacts of the SBSL on affordable housing, on smaller developers, and on island and rural communities. 

The Scottish Government is grateful to everyone who engaged with and provided a response to this consultation. Responses have been analysed in a report which has been published following the introduction of the Building Safety Levy (Scotland) Bill on 5 June 2025. Where permission has been given to do so, responses have been published on Citizen Space. 

We recognise the general opposition to the introduction of the SBSL but note that no immediate alternative solutions are being offered by respondents to address the funding challenge associated with cladding remediation. 

In lieu of the SBSL, the Scottish Government would be required to fund its Cladding Remediation Programme through its existing capital budget envelope or through changes to other devolved taxes. Neither of these options would meet Scottish Ministers’ objective of ensuring that there is parity in the funding arrangements between the Scottish and UK governments, and that the costs do not fall directly onto homeowners or disproportionately onto the general taxpayer.  Work on the SBSL has balanced the need to raise revenue for cladding remediation efforts with minimising any potential impact on the housebuilding sector, including providing exemptions for affordable housing and housing built on islands, and providing an annual levy-free allowance to protect smaller developers.