Building Safety Levy (Scotland) Bill: business and regulatory impact assessment

Business and regulatory impact assessment (BRIA) for the Building Safety Levy (Scotland) Bill.


Footnotes

1 Scottish Building Safety Levy: partial business and regulatory impact assessment - gov.scot

2 Visitor Levy (Scotland) Act 2024 (legislation.gov.uk)

3 Grenfell Tower Inquiry phase 2 report: Scottish Government response - gov.scot

4 Strengthening Scotland’s Future: HM command paper (gov.uk)

5 Response to the Consultation on devolving powers for a Scottish Building Safety Levy: A joint consultation response by the UK and Scottish Governments (gov.uk)

6 The Scotland Act 1998 (Specification of Devolved Tax) (Building Safety) Order 2024 (legislation.gov.uk)

7 UK Cladding Action Group 2020 Mental Health Report

8 Scottish Annual Business Statistics 2022

9 Quarterly housing statistics June-2024 for private sector new housebuilding

10Housebuilding market study

11 Building Safety Levy: response to consultation (gov.uk)

12 Scottish Building Safety Levy Expert Advisory Group Webpage

13 Home Builders Federation Report - reversing the decline of small housebuilders

14 Scottish Building Safety Levy Expert Advisory Group Webpage

15 Scottish Building Safety Levy: Consultation Analysis Report (gov.scot)

16 Registers of Scotland - House price statistics - Average New Build Sales Price 2024/25

17 Registers of Scotland - House price statistics - Annual growth in new build prices

18 The price elasticity of new build measures the percentage change in new build units in response to a 1% change in house prices.

19 The Scottish Fiscal Commission uses standard assumptions about price and volume (semi) elasticities in response to a change in the LBTT tax rate which are used to calculate LBTT revenues. The distinction with the current context is that LBTT is a repeat tax (i.e. it is paid each time the dwelling is transacted, while the SBSL is a one-off charge)) and that LBTT elasticities apply to all transactions (i.e. of existing dwellings as well, and not just new build).

20 See for example Table 1.5 in Barker, K. (2003) Review of Housing Supply – Interim Report – Analysis, which reports estimates from six studies from 0.3 to 1.0, as well as OECD (2011) The Price Responsiveness of Housing Supply in OECD Countries, which estimates a long-run price responsiveness of housing supply of 0.395 (see Table 3).

21 Evidence from the Competitions and Markets Authority - Housebuilding market study final report

22 Scottish Land Commission - Land Lines Discussion Paper - Relationship between land value and property development

23 House price statistics - Registers of Scotland

24 Many of these impacts are explored further in the Child Rights and Wellbeing Impact Assessment found here: Child Rights and Wellbeing Impact Assessment

25 Scottish Building Safety Levy Consultation Analysis Report

26 This figure was provided as an example by the respondent and is not reflective of any future rates. Rates for the SBSL will be outlined within secondary legislation as is the approach taken with other devolved taxes.

27 A small business is a business with less than 50 employees and a turnover a turnover or balance sheet total less than or equal to the small business threshold.

28 “Vulnerable consumers” are defined in section 25 of the Consumer Scotland Act 2020 as consumers who, by reason of their circumstances or characteristics: a) May have significantly fewer or less favourable options as consumers than a typical consumer, or b) Are otherwise at a significantly greater risk of: (i) harm being caused to their interests as consumers, or (ii) harm caused to those interests being more substantial, than would be the case for a typical consumer.

29 Scottish Building Safety Levy: Consultation Analysis Report Webpage

30 UK and Scottish Government Joint Consultation on Devolving Powers for and Scottish Building Safety Levy

31 UK Government Consultation on Building Safety Levy - England Only

32 Uk Government Building Safety Levy Technical Consultation

33 Scotland’s Tax Strategy: Building on our Tax Principles

Contact

Email: taxdivisionengagement@gov.scot

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