Meeting of the Parliament 08 January 2026 [Draft]
No, I do not entirely accept that. The bill is a specific, Scotland-centred bill and we, as Scottish parliamentarians, have to take a decision on its merits. That is the basis on which I am making these points.
Along with my colleagues on the Finance and Public Administration Committee, I listened very carefully to witnesses, who provided us with extensive written and oral evidence across three different evidence sessions before Christmas. As set out in the committee’s report, there was unanimous concern—including from Mr Mason—about several key aspects of the bill and the negative externalities that are likely to result. As colleagues know, it is unusual for a committee not to fully endorse the general principles of a bill. However, on this occasion, it has not endorsed them, and for good reason.
As the convener said, the major issue is the likely impact on the housing market, which, as we all know, has already been facing significant challenges for quite some time. The most significant concern among witnesses and members of the committee was the fact that the bill could reduce house-building capacity, because it would make certain sites unviable and thereby have a detrimental effect on the ability to deliver much-needed affordable housing. Homes for Scotland estimated that the levy would probably add around £3,500 to the cost of building a new home, and Bancon Homes told us that it would have an impact of up to 20 per cent on its profit margins. Those are not inconsiderable fiscal effects.
Different but nonetheless related are the potential effects on rural Scotland, where depopulation is already a significant problem. I have heard the minister’s concerns about some of the rurality issues, but several factors have already combined to create a very complex situation for rural housing. House prices are often high in relation to local incomes in rural areas, and there is a shortage of housing that is suitable for families, which means, sadly, that too many families choose to move away. The combination of that, the weak infrastructure that we find in rural areas in relation to accessibility of transport and the internet and the complexities in the planning process means that we encounter major challenges. Scottish Land & Estates told us that the cost of delivering rural housing could be almost double that of mainstream housing. That must be a serious concern. That is on top of a lot of the other issues that affect rural areas, such as the farm tax, national insurance charges and various other aspects of tourism and hospitality. That whole combination is a very serious matter for the rural sector.
Although there appeared, in some quarters, to be an understanding of the problem, particularly in relation to the islands issue, part of it is that we do not have a clear definition of what rurality is, and there are accompanying inconsistencies. I hope that the minister means what he said today and in committee, which is that he is prepared to lodge some amendments.
There is likely to be a disproportionate effect on smaller developers, owing to the fact that they will inevitably find it more difficult to absorb the necessary costs. The Scottish Property Federation was extremely clear about that. There was also concern that the bill could have a detrimental impact on those who want to build over a long period of time, such as the build-to-rent sector, as the financial returns there take longer to be realised.
Much of the debate among stakeholders was about how to address the issue of the polluter-pays principle. They worry that those who have acted responsibly will end up footing the bill for the levy. I think that it is worse than that, because some responsible builders will go well beyond the basic safety regulations, and they are the ones who will have to pick up the tab, whereas those who have not been responsible can, to some extent, get away with it.
The committee is unanimously concerned, for very good reasons, about some of the macroeconomic effects of the bill. Once again, I think that the Parliament is faced with a Scottish Government bill that, although well intentioned, nonetheless has very significant problems. On that basis, the Conservatives cannot support it at stage 1.
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