What assessment it has made of the potential impact of the Building Safety Levy on the viability of small and medium-sized housebuilders op…

The Scottish Government has considered the potential impacts of the Building Safety Levy on small and medium-sized developers as part of the development of the Levy. Through consultation and engagement, stakeholders highlighted the particular challenges faced by small and medium-sized housebuilders, including development viability, cashflow pressures and administrative burdens. These considerations have informed the design of the Levy.To protect smaller developers, the Levy will include an annual levy-free allowance of 29 units before a developer becomes liable for the Levy. The Levy Free Allowance removes from the scope of the Levy an estimated 85% of developers, meaning smaller developers will have no requirement to interact with or pay the Levy. As smaller housing developments are more common in rural and island areas, including parts of the Highlands and Islands, the levy-free allowance will have a greater impact in these areas, with up to 89% of new homes in remote small towns and remote rural areas exempt, depending on developer behaviour.