Meeting of the Parliament 17 March 2026 [Draft]
Amendment 7 is similar to the amendment that I lodged at stage 2. It relates to transitional arrangements. The amendment would exempt from the levy a new residential unit where a building warrant application has been submitted on or before 1 April 2028—in other words, where a development has progressed before the legislation’s commencement date. The approach matches the established principle that regulatory treatment follows the rules that are in force at the time of a building warrant application, and it recognises the significant up-front investment in viability decisions that are taken without published levy rates.
Home builders have been clear in explaining that development does not simply start when the foundations are cut. There are years of planning processes, as well as investment, before buildings are constructed. The liability date ignores the investment in the land deal, ground investigations, planning costs and professional fees for design that a developer has already borne before they start building and well before the building is completed.
A retrospective levy risks stalling delivery and hindering much-needed investment. I am certain that the minister does not wish the building of homes to be stalled, considering that the next Government needs to deliver at pace to tackle the housing emergency that Michael Marra has just outlined in his speech.
The minister has agreed to provide 22 months’ notice of rates from June this year, but there has been no consideration that developers will already have appraised and agreed land deals without taking into account the fact that the levy will come into effect from April 2028.
Homes for Scotland has been crystal clear that, without transitional arrangements in place, neither it nor the wider sector can support the bill in principle. I take the opportunity at this point to thank Homes for Scotland for its support and engagement throughout the passage of the bill.
It is for those reasons that I urge the Parliament to agree to my amendment 7 or to amendment 6 in the name of Michael Marra. I believe that both amendments attempt to resolve the outstanding issues. I will leave my remarks there.