The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1413 contributions
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
It is a competitive market with a lot of different pressures on it, so it will depend on the situation for the particular developer. The market price is set by a range of factors, so it might well be that there is a mixture. How much of the cost developers absorb from their profits and how much of it is passed on will vary depending on the developer and the circumstances.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
It comes back to ease of use, because these numbers are well known in the building process right from the planning stage. Architects and developers will know those numbers, so they can plan on that basis. The end price, on the other hand, might move around right up to the last minute, depending on a range of factors, so it would be harder for them to assess what the levy would be to allow them to factor it in. As a result, this seemed the most robust and straightforward methodology.
I do take your point about different types of houses and so on, but what we are doing through reliefs on the affordability element will go a long way towards addressing that.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
Yes.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
Yes, and if I were sat here with an underspend, I am sure that you would have something to say about that as well.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
I believe that that is the process that was followed down south, where indicative rates were given 18 months ahead of the secondary legislation.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
I am absolutely listening, and I am very keen to engage further. As I have said several times, the fact that this is being done in the rest of the UK is an important factor in our considerations. However, we continue to engage extensively with the sector on the matter.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
No, except to say thank you very much.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
You are asking me why organisations that may have to pay more tax are opposed to having to pay that tax.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
I think that that is the reality of where we are. No developers have been identified for a significant proportion of those buildings. As you have identified, the issues have to be addressed for public safety reasons. We had to make a choice about whether all the costs were carried by public finances or only a significant majority of them, with an ask to the sector to contribute towards the costs. We have taken that approach, which is the same approach as the rest of the UK. We are seeking to work on the detail of the levy and engage with the sector extensively to understand its position.
I believe that what I have announced today, and other steps that we have taken to provide mechanisms for relief, will be helpful for developers. In Scotland, Revenue Scotland will implement the levy, rather than having 296 different local authorities collecting it. We will also have one rate in Scotland compared to almost 600 rates in England, which will make it easier for developers. We will collect the levy at completion certificate stage, rather than at building control stage, which will significantly help developers’ cash flow, because they will have to pay the levy only at a point that is much closer to when they will get paid themselves. We are working hard to see what can be done with the sector to make the process as supportive as it can be, given the fact that we are asking people for money.
Finance and Public Administration Committee [Draft]
Meeting date: 18 November 2025
Ivan McKee
Again, I will reflect on some of the points that you have made as we go through the rate-setting process and understand some of the variances.