Draft Scotland Act 1998 (Specification of Devolved Tax) (Building Safety) Order 2024

Martin McCluskey Excerpts

Wednesday 30th October 2024 General Committees

[Martin McCluskey (Inverclyde and Renfrewshire West) (Lab)]

I beg to move,

That the Committee has considered the draft Scotland Act 1998 (Specification of Devolved Tax) (Building Safety) Order 2024.

It is a pleasure to serve under your chairmanship, Dr Huq. I am grateful for the opportunity to debate this order, which is the result of collaborative working between the two Governments and supports the Scottish Government’s request last year to devolve powers for the Scottish Parliament to establish a Scottish building safety levy. It also builds on work done by the previous Government before the election.

The order will be made under section 80B of the Scotland Act 1998, which provides for devolving additional tax-raising powers to the Scottish Parliament by way of statutory instrument. Scotland Act orders are a demonstration of devolution in action, and I am pleased to say that the Scotland Office has taken through more than 250 orders since devolution began.

The Grenfell Tower fire was a heartbreaking tragedy that sent shock waves across the UK and overseas. As the Prime Minister said, it was entirely avoidable. It uncovered the fact that many homeowners across the UK lived in buildings with serious fire and building safety defects. Our thoughts today remain with the victims and their families.

The remediation challenge is significant. The Scottish Government estimate that around 49% of high-rise buildings above 18 metres and 10% of those between 11 metres and 18 metres require some level of remediation. That suggests that around 382 buildings above 18 metres and around 500 buildings between 11 metres and 18 metres require remediation; that is close to 900 buildings in total.

The UK and devolved Governments have stepped up and committed public funds to help to remediate life-critical building safety problems. Industry has also assumed its responsibilities and taken ownership of the remediation challenge, but buildings remain for which a responsible party cannot be identified. It would be unfair on the taxpayer for the costs of remediating those buildings to fall on the Government, but it would be unfair on the homeowners for the costs to fall on them.

The order will devolve power to the Scottish Parliament to enable it to legislate for a Scottish building safety levy to fund building safety expenditure in Scotland. The devolved power will be similar to the power of the Secretary of State under section 105 of the Building Act 1984, as amended by the Building Safety Act 2022, to introduce a building safety levy in England. This follows a request from the Scottish Government last year to devolve such a power. The UK Government will continue to work closely with the Scottish Government, and I am pleased that in this case the Governments have worked together to make sure that this issue can be addressed in Scotland.

--- Later in debate ---

[Martin McCluskey]

I thank the shadow Secretary of State for his contribution, and I echo his comments both on the work of officials and on his own work before the election on progressing the order.

It is important to remember that this debate is purely on a constitutional order and the devolution of power to the Scottish Parliament to make a building levy; these decisions will be made by the Scottish Government. Many of the hon. Gentleman’s questions would be better answered by a representative of the Scottish Government. He will be aware that there was a joint UK Government-Scottish Government consultation that addressed many of these questions, and it gave us the assurance that there would not be the sort of impact to which he alluded.

On the risk of divergence, there are already proposals for a building levy and a consultation in England. The risk of divergence would be greater were there not to be a building levy in Scotland too. As with a number of these areas, I expect the Scottish Government to keep the effects of this tax under review, but that is a decision for them.

This instrument comes in the year of the 20th anniversary of the Scottish Parliament, which the last Labour Government delivered. It is in this spirit of devolution that this Government set out to reset relationships with the Scottish Government to deliver for the Scottish people. This instrument demonstrates the continued commitment of the UK Government to working with the Scottish Government to deliver for Scotland.

Question put and agreed to.