BMF members account for approx. £2.03 billion annual sales, employ more than 5,500 people, and trade from 430 locations in Scotland.
The Scottish Parliament and Scottish Government have devolved responsibilities for:
- economic development
- climate change, net zero & energy-efficiency
- education, training & skills
- manufacturing
- construction & infrastructure
- transport
- housing & planning
- water & flood defence.
COLLABORATION
The BMF is a founder member of the Construction Industry Collective Voice. The CICV is an industry alliance that comprises 25 trade associations, employers’ federations and professional bodies that represent Scottish companies active today in the construction, house-building & property RMI markets. We chair the CICV Supply Chain Management Group. Please visit: https://cicvforum.co.uk
GOVERNMENT
In March 2023, the BMF was asked to serve on the Scottish Construction Leadership Forum. It is a non-statutory, joint government & industry initiative that was established in March 2019 to develop and implement an action plan to transform and modernise construction in Scotland. For example: with training & skills; net zero & carbon reduction; and to attract more women and people of colour to choose construction careers.
The Construction Leadership Forum comprises builders & contractors and public officials - together with (among others) professional bodies (RIAS), trade unions (UNITE), major clients and the enterprise agencies. Meetings are bi-monthly and are chaired by Richard Lochhead, MSP for Moray, and the Minister for Small Business, Innovation, Trade & Tourism.
The CLF’s primary purpose is to deliver the Scottish Construction Accord that sets out to improve outcomes for the employers & workers involved in construction and allied trades & industries - as well as from the industry for its public & private clients - and the wider Scottish economy and environment. The Accord can be found here.
CURRENT TOPICS
Aggregates Tax
The Scottish Parliament has powers to legislate for a new Scottish Aggregates Tax to replace the current UK Aggregates Levy in Scotland. This new tax will be applied to the commercial exploitation of primary aggregates - crushed rock, sand & gravel. The intended start date is 1 April 2026 - but legislation is required to be passed in both the Westminster and Holyrood Parliaments. The policy aims are to (a) encourage the minimum use of primary aggregates; (b) maximise the use of recycled aggregates and (c) develop alternative materials.
Where aggregate is moved to Scotland from England, Wales or Northern Ireland, the producer will have to account for the tax as they would if it was an internal Scottish transaction. Several cross-border scenarios involving indirect transfers have arisen. For example: where a quarry supplies aggregate to a builders’ merchant or garden centre that then sells it onto a Scottish customer. This creates two points of taxation: (a) the sale from the quarry to the merchant and (b) the sale from the merchant to the end customer. This poses a risk of double taxation that the Scottish Government is looking at. There is more work to do to avoid this possibility.
Heat in Buildings Bill
The Scottish Government has consulted on its plans for heat decarbonisation in residential, commercial & public sector buildings. Ministers wanted to end fossil fuel heating by 2045 - as well as impose stricter minimum energy-efficiency standards (MEES) for both owner-occupied homes and privately-rented accommodation.
In a nutshell, new laws were sought to:
- prohibit the use of polluting heating from 2045 in all buildings;
- require owner-occupied homes to meet a MEES by the end of 2033;
- require landlords of privately-rented homes to meet a MEES by the end of 2028;
- require buyers of homes or business premises to end their use of polluting heating within a fixed period after purchase;
- require people and businesses to end their use of polluting heating when a heat network becomes available that they can connect to.
But in April 2024, the SNP and Green Party Government fell apart over disagreements on net zero policies. The upshot was that the Minister responsible for low- and zero-carbon buildings & heating, Patrick Harvie MSP, Leader of the Greens, was sacked. Subsequently, speculation was rife about whether (or not) these Heat in Building Bill proposals would continue as previously intended.
In March 2025, Gillian Martin MSP, Cabinet Secretary for Net Zero & Energy, told the Scottish Parliament that due to concerns over homeowner costs & fuel poverty, this draft legislation will not be introduced in the foreseeable future. We await to see what comes next.
Water, Wastewater and Drainage Policy
The Scottish Government has consulted on its proposed strategic principles & policies for the future of the water industry (esp. regarding climate change). Ministers sought views on (a) drinking water (b) wastewater and (c) drainage services.
The set questions were (among others) on proposals relating to:
- managing catchments to identify & minimise risks to drinking water from pollution;
- water use per person per day that is higher in Scotland than the other home nations;
- plans and procedures to have ready to use in emergencies to restrict water use;
- the presence of lead within pipes in people’s homes and associated risks;
- reducing the impact of rainfall on new developments and SuDS drainage systems;
- private wastewater systems that are not connected to the public network
The 31-page consultation is here although it closed on 21 February 2024.
Your first point-of-contact is Brett Amphlett on (020) 7451 7316 or [email protected].