The Scottish Government has published the Building Safety Levy (Scotland) Bill, new legislation aimed at unlocking additional funding to address widespread building safety issues, particularly those related to unsafe cladding.

If passed, the Bill will introduce a new tax on the construction of certain new residential properties, mirroring equivalent legislation in England.

The proposed levy is expected to generate approximately £30 million per year. This revenue will be crucial for funding the Scottish Government’s Cladding Remediation Programme, specifically targeting residential buildings with unsafe cladding where the original developer cannot be identified or held responsible. Current estimates indicate that the total cost of this remediation programme could reach £1.7 billion over a 15-year period.

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Public Finance Minister Ivan McKee underscored the government's commitment to tackling the cladding crisis. "The Scottish Government is committed to doing what is right and necessary to address the challenge of fixing buildings affected by unsafe cladding," he stated. "That includes putting the appropriate funding arrangements in place to ensure that the associated costs of cladding remediation do not fall directly onto affected homeowners."

McKee also highlighted the expectation for developers to contribute fairly to these costs. "I know that developers share our determination to keep people safe and this levy will ensure they make a fair contribution to these costs, just as they will be doing in England." He further welcomed the ongoing cooperation from developers who have already taken responsibility for assessing and remediating their buildings.

The Bill, which is proposed to come into effect in April 2027, includes provisions to exempt certain types of development, such as social and affordable housing, to mitigate impacts on housing supply. The specific tax rates will be detailed in future regulations, subject to the Bill's approval by MSPs. The legislation also provides for regular reviews of the levy to adapt to market conditions and the evolving costs of the remediation program.