Consultation on devolving powers for a Scottish Building Safety Levy

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 government's 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.