Building safety levy

[edit] Background

The Building Safety Bill 2019-20 was announced in the Queen’s Speech on 19 December 2019 following the Grenfell Tower fire on 14 June 2017. Its purpose was to put in place new and enhanced regulatory regimes for building safety and construction products, and to ensure residents have a stronger voice in the system. Part of the Bill (Clause 57) gives the Secretary of State powers to impose a new Building Safety Levy in England. The levy will contribute towards the government’s costs for remediating historical building safety defects. It will be applied to developers, when making an application to the Building Safety Regulator for building control approval, via a “Gateway two” process.

This levy is in addition to a new Residential Property Developer Tax (RPDT). This will tax the profits of larger developers to contribute towards fixing historical fire safety defects, including unsafe cladding.

[edit] Process

Three process gateways will be introduced, each of which must be approved by the Building Safety Regulator before a project can proceed to the next gateway:

• Gateway one – at the planning application stage
• Gateway two – before building work starts
• Gateway three – when building work is completed

The overall approach in support of the Golden Thread of information proposed as part of the Bill, where building construction information can be more easily tracked and allowing the potential to hold those responsible for building safety more accountable.

[edit] Application

The levy process will apply to residential buildings or care homes over 18m or 7 storeys, in particular 'higher risk buildings' - this will also be subject to exclusions, which are under further discussion. Housing and building safety are devolved matters, as such each of the four nations will be responsible for developing and enforcing their own regulations. The Building Safety Regulator will need to determine building control applications at Gateway 2 within 12 weeks, except where a review or appeal occurs.

[edit] Amount

The government is in the process of making a decision on the eventual levy rate. The levy rate will be set out in regulations and may be varied over time.

The Secretary of State announced the intention to protect small and medium-sized builders, for example through the ability to agree payment schedules if an SME could not pay the levy in full upfront. The finer details of the Levy continue to be under consultation as of April 2022.

For further information visit https://www.gov.uk/government/publications/building-safety-bill-factsheets/building-safety-levy-factsheet

[edit] Related factsheets

A series of factsheets are available through Gov.UK, updated in April 2022 to provide more information about the provisions in the Building Safety Bill and how they will be implemented.

• Building safety leaseholder protections factsheet
• Dutyholders: factsheet
• Industry competence: factsheet
• Building control regime for higher-risk buildings (Gateways 2 and 3): factsheet
• Safety Case: factsheet
• Safety management systems: factsheet
• Building Safety Regulator: factsheet
• Amendments to the Regulatory Reform (Fire Safety) Order 2005: factsheet
• Accountable Persons: factsheet
• Golden thread: factsheet
• Building Safety costs: factsheet for landlords & building owners
• Ongoing Building Safety costs: factsheet for leaseholders
• Construction products regulatory framework: factsheet

[edit] Building Safety Act

On 28 April 2022, the Building Safety Bill received Royal Assent, becoming law as the Building Safety Act 2022. However, many of the provisions set out in the Act will not come into force immediately as secondary legislation is required. A transition plan has been published at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/999356/Timeline_for_Transition_Plan.pdf.

[edit] Related articles on Designing Buildings

• Building Safety Alliance.
• CIAT raises concerns about Building Safety Bill.
• CIOB responds to Newsnight report - Trapped: the UK's building safety crisis.
• CIOB reviews the Building Safety Bill.
• Eight organisations form engineering services alliance.
• Fire safety bill.
• Golden thread.
• Government response to the Building a Safer Future consultation.
• Grenfell Tower fire.
• Grenfell Tower Inquiry.
• Hackitt Review.
• Leading built environment bodies call for sprinklers in all schools.
• National construction products regulator established.
• The Building Safety Bill and product testing.
• The Building Safety Bill - A Quality Response.
• The Building Safety Bill, regulations and competence.
• The golden thread and BS 8644-1.

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