Meeting of the Parliament 25 January 2023
This SSI increases the rate of the additional dwelling supplement from 4 per cent to 6 per cent with effect from 16 December 2022. That change is intended to further protect opportunities for first-time buyers and home movers by helping them to compete with buy-to-let investors and second home owners. It is also forecast to raise much-needed revenue at a time when public finances are under significant pressure.
The Scottish Fiscal Commission estimates that increasing the rate will result in an additional £34 million being raised from the ADS next financial year. Members have raised concerns about the potential impact of the measure on a range of issues, and I note the points that Daniel Johnson makes. I wish to reassure him, as I set out at the Finance and Public Administration Committee, that we are considering very carefully the evidence that was brought forward as part of our ADS review, including on the measures that pertain to local government, which he raised. We will publish the outcome of that review and the next steps shortly.