Arcus launches tool for councils to run building levy

Arcus Global has launched a software module to help councils administer the Building Safety Levy. Ten local authorities are already using it ahead of the levy's introduction in October.

The levy is expected to raise about GBP £3.4 billion and will apply to certain new residential developments in England. Councils will have to calculate, collect and report the charge on behalf of central government, with the first national returns due in January 2027.

This adds another statutory task for planning and building control teams already managing a series of regulatory changes. The levy is intended to help fund repairs to building safety defects identified after the Grenfell Tower fire and examined in the Hackitt review.

Arcus developed the module in line with guidance from the Ministry of Housing, Communities & Local Government, with input from Local Authority Building Control and its user community. The product is available for immediate deployment by councils.

The software creates a levy record from a building control application and calculates the amount due based on the size of a development and local charging rates. It also applies discounts, including the 50% reduction for building on brownfield land, and prepares figures for submission to central government in the required format.

Accurate collection matters because local authorities must administer the levy without adding unnecessary manual work for staff. The module is designed to reduce re-keying and calculation before councils submit returns.

Administrative pressure

For councils, the challenge is not only complying with a new levy but doing so within a short timeframe. The October deadline for recording the charge comes before the first reporting deadline in January 2027, leaving authorities limited time to adapt systems and train staff.

The ten authorities now implementing the module have funded the work through Building Safety Levy burden funding. This suggests a wider effort across local government to use earmarked support to prepare for the scheme before the statutory deadlines take effect.

Arcus already supplies software to more than 60 local authorities across the UK. Its wider product range covers planning, building control, land charges, finance and regulatory services.

Because the Building Safety Levy tool sits within Arcus's existing platform, councils already using its systems may find it easier to introduce than a separate product. This should limit disruption to current teams and workflows.

Supplier response

The levy's arrival is also a test of how quickly technology suppliers can respond to policy changes in local government. New statutory obligations often require councils to change back-office systems at pace, particularly when reporting formats and charging rules are set nationally.

Denis Kaminskiy, Co-Founder & Chief Executive Officer of Arcus Global, outlined the company's view of the pressure facing local authorities.

"Councils are being handed a brand-new statutory duty on a punishing timescale. We chose not to wait. Working with MHCLG and the building control community, we had a working solution ready months before the deadline, not bolted together at the last minute.

"Policy is changing faster than ever, and suppliers have a responsibility to keep pace and take pressure off local government, not add to it. We are proud to be among the first ready with a full solution, and prouder still that councils are already meeting their obligations ahead of the curve," said Kaminskiy.

The Building Safety Levy reflects a broader shift in the relationship between central government policy and council operations. Local authorities are increasingly expected to administer complex national schemes while maintaining day-to-day planning and regulatory services.

For software suppliers, that creates a market for tools that can be added quickly to existing council systems. For councils, the decision is likely to depend on whether they can adapt current processes in time for October without increasing the burden on stretched planning and building control staff.

Ten authorities have already moved to put a system in place before the new charge takes effect.