The Scottish Government has introduced the Building Safety Levy (Scotland) Bill, aiming to generate £30 million annually through a tax on select new residential developments. The proposed legislation is designed to help fund the country’s extensive cladding remediation programme. Reports Contract Journal
Recent data reveals that up to 1,450 buildings — including around 250 high-rise properties — could require safety works, nearly doubling earlier projections. Full building assessments are currently in progress, with 107 properties undergoing detailed surveys in an initial pilot phase.
Government estimates place the total remediation cost between £1.7 billion and £3.1 billion over the next 15 years, with inflation and optimism bias contributing significantly to the upper end of the range.
Public Finance Minister Ivan McKee stated: “We’re committed to doing what’s right to fix buildings with unsafe cladding and ensure the cost doesn’t fall on homeowners.”
The proposed levy, which reflects a similar scheme already in place in England, is set to come into effect from April 2027 — subject to approval by the Scottish Parliament.
Importantly, the levy will exempt social and affordable housing developments. It will also include a review mechanism to allow flexibility in response to shifting housing market conditions.
Following an agreement last year, the UK Government has devolved the necessary powers to Scotland to implement the levy. If passed, it will provide a vital funding source for buildings where the original developers have not accepted liability for construction defects.
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