Building Safety Reforms: What Edinburgh SMEs Need to Know

Scotland operates its own building standards and fire safety regulatory framework, independently from the regime in England. However, many Edinburgh-based firms deliver services, projects, or advisory work across the UK. This article outlines recent and proposed developments in England, which may be relevant for Scottish businesses engaging in cross-border trade or within UK-wide supply chains.

Building safety regulations in England are changing at an unprecedented scale, particularly following the Grenfell Tower tragedy and subsequent reforms introduced through the Building Safety Act 2022. Businesses in and around Edinburgh involved in property, construction, facilities management, or professional services, should be aware of developments where they undertake work or support clients across the border, as these changes are likely to affect your operations, directly or indirectly.

Here is a practical overview of key changes and emerging proposals and what they mean for SMEs operating across jurisdictions.

A new independent building safety regulator

The Building Safety Regulator (BSR) formally separated from the Health and Safety Executive (HSE) as of 27 January 2026 to become a standalone public body reporting to the Ministry of Housing, Communities and Local Government (MHCLG). This change was prompted by the Grenfell Tower Inquiry Phase 2 report, which called for a more accountable public body to oversee building safety. For Scottish firms delivering work across the border, the line of accountability is now clearer for approvals, submissions, queries, and compliance.

Competency requirements

A key pillar of the Building Safety Act regime is the strengthening of competency requirements for dutyholders, particularly Principal Contractors and Principal Designers. These roles interact with existing obligations, under the Construction (Design and Management) Regulations 2015 (CDM 2015), but introduce additional expectations around building safety, particularly for higher-risk buildings. Competence frameworks are informed by standards like the British Standards Institute PAS 8671 and PAS 8672, which outline the skills, knowledge, experience, and behaviours required.

Misunderstanding the scope of these roles is a material compliance risk. For a detailed and clear breakdown of what this role actually involves, Universal Safety Practitioners (USP) have published a thorough briefing on the Principal Designer role and duties, which can serve as a valuable reference for any SME operating in this space.

Proposals for a single construction regulator

In December 2025, the UK government published a prospectus setting out its vision for a more integrated regulatory model for construction, as outlined by Construction News Magazine.

Proposals under consideration include:

• A more unified oversight framework across construction activity
• Enhanced regulation of construction products
• Professional licensing and strengthened accreditation
• Mandatory registration and licensing for fire risk assessors and for Principal Contractors working on higher-rise buildings
• A publicly accessible library of test data and safety reports

A government response is expected sometime in the summer of 2026 with legislation to follow, subject to parliamentary time. Edinburgh SMEs working across the UK construction sector should monitor these developments closely, as any consolidation of regulatory functions could materially affect compliance procedures.

Gateway approvals and staged applications

The Building Safety Act introduced a staged "Gateway" regime for higher-risk buildings in England (generally residential buildings over 18 metres or seven storeys).

• Gateway 2: Requires approval before construction begins
• Gateway 3: Requires completion certification before occupation

Ongoing capacity pressures remain a consideration, particularly at Gateway 2 and for complex or remediation projects, so businesses involved in English developments should factor potential delays into project planning and delivery programmes.

New Construction Leadership Council (CLC) guidance, published in December 2025, allows for submission of Gateway 2 applications, so initial groundworks and basement works can be approved and commenced before full design details are submitted, benefiting multi-phase projects. For a broader understanding of the changes to Gateway 2 applications and dutyholder responsibilities, law firm Macfarlanes has published useful guidance for project teams.

The building safety levy

Announced in the Chancellor's Spring Statement 2025, and expected to come into force on 1 October 2026, the Building Safety Levy applies to new residential developments in England requiring building control approval.

The key features include the following:

• Calculations based on gross internal floor space
• Variable rates depending on local authority
• Exemptions for certain smaller or specialist developments

The levy intends to contribute toward the cost of remediating historical building safety defects, but final implementation details remain subject to secondary legislation.

For Edinburgh businesses with residential development exposure in England, or supplying into that sector, the levy will factor into project cost calculations. As highlighted by Travers Smith in their guidance for surveyors and development professionals, the levy is intended to raise around £3.4 billion from developers over the next decade to fund safety defect remediation. Their guidance also covers how to calculate the levy.

Fire safety regulations: Approved Document B

Updates to Approved Document B continue to shape fire safety requirements in England. This includes evolving expectations around evacuation planning for residents who may require assistance, as well as design considerations for high-rise residential buildings, such as means of escape.

Scottish fire safety guidance sits separately under the Scottish Government and Scottish Fire and Rescue Service, so those firms operating across both jurisdictions should ensure they are always working to the regime applicable to their project.

What should Edinburgh SMEs do now?

For businesses with any cross-border or English market exposure, several practical steps are advisable:

• Clarify jurisdiction early on cross-border projects and confirm what standards apply before scoping or pricing.
• Review any projects or properties you have interests in across England against the new requirements.
• Ensure anyone in your organisation with a Principal Contractor or Designer designation understands their new legal obligations.
• Build contingency into plans requiring Gateway approvals.
• Reflect potential levy costs where applicable.
• Track consultations and emerging legislation, and engage where your business has a stake in how the sector is regulated.

The aims are clear: greater accountability, stronger competency criteria, and more oversight at every stage of design and construction. Businesses that get ahead of these changes, will be better placed to work confidently across the country.

This article is intended for general information purposes only. Specific professional or legal advice should always be sought in relation to your individual circumstances.