The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1661 contributions
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
Clearly, there are tax collection measures at the Scottish Government and UK Government levels, and mitigations and processes are in place to prevent people running a business, making money, folding a business and running away with the money. You are not allowed to do that.
There will be issues to be worked through in that regard, but it is not as though we do not collect tax from companies at the UK level or Scottish level at the moment. There are mechanisms for doing that, and I am sure that Revenue Scotland has gone through the technical parts of that with the committee. Do you want to say any more on that, Hannah?
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
First of all, affordable housing is exempt from the levy. You are correct to say that all these matters have to be considered in the round as part of our discussions with the sector and others about the need to support house building. However, I take you back to the point that, if the sector did not make the proposed relatively small contribution to the overall costs of addressing cladding, those funds would have to be raised elsewhere.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
We are very conscious of that issue. We have indicated that there will be relief for brownfield sites; we just need to work through the details of the extent of that relief. In England, it is a 50 per cent reduction, so developers pay half the levy for developments on brownfield sites. In Scotland, we are very conscious of the need for relief for such sites, because of the additional remedial costs and because of their location in town and city centres, where we want to encourage development.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
It is a competitive market with a lot of different pressures on it, so it will depend on the situation for the particular developer. The market price is set by a range of factors, so it might well be that there is a mixture. How much of the cost developers absorb from their profits and how much of it is passed on will vary depending on the developer and the circumstances.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
It comes back to ease of use, because these numbers are well known in the building process right from the planning stage. Architects and developers will know those numbers, so they can plan on that basis. The end price, on the other hand, might move around right up to the last minute, depending on a range of factors, so it would be harder for them to assess what the levy would be to allow them to factor it in. As a result, this seemed the most robust and straightforward methodology.
I do take your point about different types of houses and so on, but what we are doing through reliefs on the affordability element will go a long way towards addressing that.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
Yes.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
Yes, and if I were sat here with an underspend, I am sure that you would have something to say about that as well.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
I believe that that is the process that was followed down south, where indicative rates were given 18 months ahead of the secondary legislation.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
That is a good point. If we look at the numbers, we can see that a relatively small percentage of the total cost of the remediation is covered by the levy. The remediation timetable, which is outside the scope of what we are talking about and has been taken forward by the Cabinet Secretary for Housing, is running as fast as it can in terms of the on-going work around the call for buildings to be identified so that they can be assessed. The funding is in place for the assessment of those buildings, and the work to get developers signed up to that activity, where the developer is identified, is continuing—the delay from the deferment has no impact on that.
It is worth recognising that the remediation is being implemented earlier in England because the transitional arrangements there are configured at the building control stage. That is earlier in the process than the completion certificate stage. There is recognition that there is quite a lead-in, so the revenues in England in the first year will be a small percentage of the total revenues that are expected in future years, when everything has flushed through the transitional arrangements.
Within the process that we are implementing, taking the revenue charge at the completion certificate stage means that we will immediately start to gain the full revenues from 2028.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
From a practical point of view, that would be extremely challenging. Officials might want to comment on that, as they have been closer to the detail and would have investigated that. We came to the same conclusion as the UK Government on that for many of the reasons that you have identified, such as that many of them will no longer be around, and many will be international companies, so it would be hard to identify their involvement. We have made a provision to extend the time period for up to 15 years to enable developers to pursue supply chain companies.