Hm Treasury
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 governments 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.
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 governments Building Safety Levy for England.
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.
