Building Safety Levy Expert Advisory Group minutes: September 2025

Attendees and apologies

An exact attendance list is not available for this meeting. An updated list of Group members can be found on the Building Safety Levy Expert Advisory Group webpage.

Items and actions

Welcome and Terms of Reference  

• group requests previous minutes be simplified before publication
• minutes to be agreed at next meeting

UK Government presentation on Building Safety Levy England 

Overview of the UK Levy included:  

• upcoming debate in the House of Lords
• sector contributions linked to ongoing investigations
• limited impact on housing supply
• revenue earmarked for building safety

Clarifications were provided on: 

• scope of the Levy (limited to those with direct responsibility). 
• the Levy payment timing (before completion certificate)
• joint ventures and exemptions
• draft rates published in March 2025, pending approval 

Levy design and transitional arrangements 

Discussion:

• concerns raised about lack of transitional arrangements potentially affecting Small- and Medium-Sized Enterprises (SMEs)
• suggested lead-in period of 18 months to align with UK system and support housing delivery
• proposal for a “sunrise clause” to allow stable housing output before Levy implementation

Discussion on fiscal implications and need for certainty. Suggestions included: 

• increasing Levy-free allowance temporarily to ease SME impact
• geographic variation in Levy rates across Scotland
• clarification on land purchases already underway

Commitment made to relay concerns to Ministers and explore options.

Affordable housing definition 

• issues raised around terminology, flexibility, and funding definitions

• Discussion included:  

  • variation in mid-market rent (MMR) models
  • role of private capital in affordable housing delivery
  • planning definitions and their impact on Levy rates
  • concerns about drafting and interpretation of “affordable housing” in the Bill
  • clarification provided that housing definitions are not part of the Levy Bill
  • request made to confirm whether certain housing models (e.g. LAR-type) are exempt 

Actions

Action: Consider increasing the Levy-free allowance as a transitional measure 

• Owner: Scottish Government officials 
• Notes: Suggested by Member to soften impact on SMEs   

Action: Explore options for geographic variation in Levy rates across Scotland 

• Owner: Scottish Government officials 
• Notes: Data available; options under consideration   

Action: Provide indicative timeline for draft Levy rates and other key milestones 

• Owner: Scottish Government officials 
• Notes: To support sector certainty and planning   

Action:  Confirm whether LAR-type models would be exempt from the Levy 

• Owner: Scottish Government officials  
• Notes: Raised by member; relates to MMR and funding definitions