Scotland eyes £3bn cladding fix as levy targets house builders

Aaron Morby 3 hours ago
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The cost of fixing unsafe cladding on homes across Scotland could hit £3.1bn, according to new government estimates.

Ministers have published the Building Safety Levy (Scotland) Bill, which proposes a tax on certain new residential developments to raise £30m a year towards the vast remediation programme.

Latest figures reveal up to 1,450 buildings – including 250 high-rises – may need works, nearly double the original estimate. Full surveys are underway, with 107 buildings being examined in a pilot phase.

The Scottish Government expects the cladding remediation bill to land somewhere between £1.7bn and £3.1bn over 15 years, with inflation and optimism bias making up nearly half of the projected cost.

Public finance minister Ivan McKee said: “We’re committed to doing what’s right to fix buildings with unsafe cladding and ensure the cost doesn’t fall on homeowners.”

The levy mirroring a similar charge already introduced in England will apply from April 2027 if the legislation is passed by Holyrood.

It will exempt social and affordable housing developments and include a review clause to adjust targets depending on housing market conditions.

The UK Government agreed to devolve powers for a Scottish levy last year. If approved, it will offer a critical funding stream for buildings where no original developer has taken responsibility for defects.

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