Reported by PCB Today, legislation for the Building Safety Levy (BLS) is expected to be published between March and April 2025, with a view for enactment by September 2025. Its remit will target almost all developers, raising serious concerns about its impact on SMEs.
Richard Beresford, Chief Executive of the National Federation of Builders (NFB), commented:
“Once again, it looks as though the Government is adopting a non-polluter pays principle, and similar to Nutrient Neutrality, the actual polluters are being let off the hook. Worse still, the Government recognises the commercial costs of another tax by exempting for profit sectors which are tied to the public sector and all public housing projects.
“It has also decided that any company, even if they have never touched a high-rise development or will become new entrants to the housing industry, should pay for the failures of others, including the Governments’.”
According to PBC, the BSL is likely to be implemented on:
- Sites of 10+ homes (Major sized sites).
- Student Housing and HMOs: Applies to developments with 30 or more bed units.
- Rates will be calculated on floor space (m²).
Exemptions may include:
- Social and affordable housing.
- Development of fewer than 10 units.
- Care homes, NHS hospitals, armed forces accommodations, etc.
- Supported housing, children’s homes, refuges, etc.
- For-profit housing built buy a not-for-profit registered provider.
Rico Wojtulewicz, Head of Policy and Market Insights at the NFB, added:
“If these reports are true, this is an astounding outcome which ignores industry recommendations for the levy to only be bought in once all these responsible were in scope of the Levy. Excluding sites of up to fifty houses to protect a greater number of innocent SME builders and charging a supplementary levy for a five-year period on those who are responsible for such works.
“If the BSL is introduced as rumoured, then, within just two-weeks the Government will have broken its promise of not implementing policies that inhibit growth. This policy will result in few affordable homes, hinder companies from growing their businesses and investing in the broader industry, and discourage new entrants from joining the housebuilding sector.”
The NFB has produced a letter template you can use to write to your local MP asking them to support the ‘polluter pays’ principle.
- Polluter pays, with ‘orphaned buildings’ funded through the levy.
- Extend RPDT to all accountable industries highlighted in the Grenfell report.
- No BSL is introduced until all accountable Option 2. parties are legislated for. All RPDT industries will then be included in the BSL.
A 10% BSL surcharge (based on the levy amount paid) will also be introduced by those identified in Option 1 as ‘polluters’
Please find the letter template here: https://ask-nfb.builders.org.uk/documents/template-lobbying-letter-polluter-pays-building-safety-levy/
