Government Building Safety Levy technical consultation response

[edit] Introduction and summary

The Building Safety Levy, introduced under the Building Safety Act 2022, aims to fund building safety improvements and protect leaseholders from bearing the cost of fixing unsafe buildings. This levy applies to new residential building in England requiring building control approvals and is part of the government’s broader strategy to accelerate remediation and ensure the construction industry contributes to addressing building safety issues.

Prompted by the Grenfell Tower tragedy, which exposed severe regulatory failures and caused 72 deaths, the government is committed to fixing unsafe buildings over 11 metres and shielding both leaseholders and taxpayers from remediation expenses. The levy is a key measure to make the responsible industry share the financial burden.

Initially planned for Autumn 2025, the levy’s implementation has been delayed to Autumn 2026. This extension allows local authorities, the Building Safety Regulator, and housing developers approximately 18 months to prepare and incorporate the levy into their financial plans. The specific levy rates will be detailed in regulations to be laid before Parliament later this year.

A public consultation on the levy ran from November 2022 to February 2023, with the government publishing its response in January 2024 and confirming that the policy proposals outlined will proceed as planned, the results of that consultation are described below.

The Building Safety Levy will apply to new dwellings and purpose-built student accommodation in England requiring building control approval, with local authorities collecting and transferring revenue to the central government quarterly. Councils will receive grant funding to cover administrative costs.

The levy is calculated based on floorspace and varies by local authority to reflect regional house prices, with higher rates in expensive areas. A 50% discount applies to brownfield developments. Exemptions include affordable housing, NHS facilities, care homes, and small developments (under 10 units). Non-payment will result in withholding building completion certificates, preventing occupancy and sale.

Failure to pay the levy will result in withholding of building control completion certificates, preventing developers from selling or occupying the property.

The second consultation, held in early 2024, gathered 80 responses, helping refine the final policy. The government’s detailed response is outlined in the technical consultation response document published 24 March 2025. The feedback from that consultation was used to develop the proposals outlined in a second “technical” consultation, which provided a greater level of detail on the operation of the levy, covering the following areas:

• methodology for levy calculation
• the collection process
• disputes and appeals
• further exclusions
• public sector equality duty

The technical consultation ran from 23 January 2024 to 20 February 2024. Members of the public and organisations were able to respond using the online response tool provided and by email. The Government received a total of 80 responses to the consultation. This document summarises the feedback and the government’s response.

[edit] Government responses in brief

[edit] Government response to the proposed levy rate calculation methodology

The government will set levy rates through regulations without indexation, with reviews every three years, though more frequent reviews may occur if needed. Levy rates, based on the consultation's methodology, will vary by local authority and be half for previously developed land. A detailed methodology note will clarify data sources. While the levy may slightly impact housing supply, differential rates based on local house prices and reduced rates for previously developed land aim to mitigate this. The £3.4 billion revenue target is intended to cover building remediation costs, and the government will adjust it as necessary to meet safety goals.

[edit] Government response to calculating floorspace

The government will use Gross Internal Area (GIA) to calculate the levy charge for new developments, aligning with the RICS Code of Measuring Practice 6th Edition. This approach, supported by most respondents, reduces administrative burdens by matching the method used for the Community Infrastructure Levy (CIL). Communal areas will be included in the levy calculation, as they benefit occupants and add value. However, shared communal spaces linked to exempt areas (e.g., affordable housing) will be partially exempt. The government rejected calls to switch to a per-unit charge, maintaining the per-square metre approach outlined in the previous consultation.

[edit] Government response to collection of the levy

[edit] Submission of information

The provision of levy information will be divided between the application/initial notice stage and the commencement stage. Developers must submit key details to local authorities or the Building Safety Regulator to calculate the levy. Failure to provide required information, such as planning details, dwelling numbers, and chargeable floorspace, may result in application rejection, reducing administrative burdens on local authorities.

[edit] Spot checks and calculation of the levy charge

Local authorities will conduct spot checks on levy information for at least 10% of building control applications and initial notices per quarter, or one of each if lower. They will verify client-provided data against supporting evidence and other available information. Inaccurate information will lead to recalculated levy liability. Local authorities will calculate and issuelevy notices within five weeks (or eight if a spot check occurs), with rates varying by area. Levy revenue may be retained to cover administrative costs, including spot checks, and notices will also be sent to the Registered Building Control Approver if applicable.

[edit] Payment of the levy, changes to works and refunds

The levy must be paid before applying for the first completion or final certificate. Clients can update levy information if changes occur during construction, including amendments or changes to exemptions. Updated information may lead to a revised levy notice within five weeks (or eight with a spot check). Overpayments will be refunded within two weeks of the updated notice. Failure to provide levy information may result in the rejection of amendment or change control applications. Collecting authorities will confirm levy payments within two weeks of receipt, ensuring transparency and timely processing of payments and refunds.

[edit] Confirming levy payment at completion

A completion or final certificate cannot be issued unless the levy is fully paid. This applies to all works, including partial or interim completions, without staged payments allowed. Clients must confirm levy payment or exemption when notifying completion. Local authorities, the Building Safety Regulator (BSR), and Registered Building Control Approvers (RBCA) must verify payment with the collecting authority before issuing or accepting certificates. Regulations will be amended to enforce these requirements, ensuring compliance and aligning certification processes across different supervising bodies. This approach also addresses concerns about the impact on property sales due to missing completion certificates.

[edit] LA capacity

The government acknowledges concerns about local authorities' capacity to manage levy duties, especially involving building control specialists. To address this, the levy is designed to reduce the burden on building control teams. Upfront funding will be provided to help local authorities prepare, and they will be allowed to recover administrative expenses from levy revenueonce the levy is implemented.

[edit] Government response to the proposed approach to identifying Previously Developed Land

The government will apply a single discounted levy rate for previously developed land (PDL) to balance protecting development viability with reducing administrative burdens on local authorities. This rate is half that of non-PDL in each area. A 75% PDL threshold within the site boundary will qualify developments for the discount. Developers must apply for the discount with supporting evidence at the first commencement notice. Local authorities may verify claims through spot checks, consulting the Local Planning Authority if needed. The definition of PDL will align with the National Planning Policy Framework (NPPF) with amendments for regulatory use.

[edit] Government response to dealing with disputes

The government will follow the proposed process for resolving disputes over levy calculations. Clients must first request a review from the local authority (LA) within 28 calendar days, which will be conducted by a senior, uninvolved officer. If dissatisfied with the outcome, clients may appeal to the First-tier Tribunal (FTT) within 21 days. Existing regulations will handle disputes regarding application rejections or certificate withholding. The Valuation Office Agency’s (VOA) decisions on chargeable floorspace may be considered if relevant. LAs can recover costs from levy revenue for managing disputes, including reviews and appeals.

[edit] Government response to the exclusion of some types of communal accommodation

The government will proceed with excluding the specified building types from the levy, including hotels, as they serve a commercial function. Despite calls to exclude independent retirement communities, housing with care, Built-to-Rentproperties, purpose-built student accommodation, and mid-sized developments (10-49 units), these will remain subject to the levy. Clear definitions and guidance will be provided.

[edit] Next Steps

The Government will use the responses to both consultations to inform the Secondary Legislation which is needed to underpin the levy. The levy requires an Affirmative Statutory Instrument, so the Secondary Legislation needs to be debated and approved by both Houses of Parliament, before being made and signed into law.

This article is based on the contents of the government response, for full details visit "Consultation outcome. Building Safety Levy: Technical consultation response" dated 24 March 2025.

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