Heat in Buildings law: Scottish Government warned it must commit money to help small firms or face more businesses going under

The Federation of Small Businesses in Scotland has provided feedback on the Heat in Buildings Bill

Scottish ministers are being warned against a “one-size-fits-all” approach in the move to eco-friendly heating and hitting green targets.

The needs of small firms must be “front and centre” as polluting oil and gas boilers are phased out in favour of low-emissions solutions such as electric heat pumps, according to the body representing the sector.

The call comes from the Federation of Small Businesses in Scotland (FSB Scotland) as a consultation on the Heat in Buildings Bill continues. The legislation will set out how Scotland's buildings are heated and how energy-efficient they need to be.

Heat in Buildings Bill: All Scotland properties to start move from oil and gas boilers to green systems like heat pumps in 2028

For example, the use of systems powered by fossil fuels will be outlawed in all buildings from 2045 onwards – Scotland’s target date for reaching net zero climate emissions. Those purchasing a home or business premises will also be bound to switch away from polluting heating systems within a fixed period after buying.

In addition, all properties will need to be insulated to a minimum standard.

Responding to the consultation, the body flagged confusion among members over the actions needed and called for funding to help them comply.

Scotland's new Heat in Buildings Bill, which is currently under consultation, will outlaw fossil fuel systems such as oil and gas boilers in all properties from 2045. Picture: Getty Images

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“Scottish small businesses recognise that significant changes must be made over the next 20 years if we’re going to meet our net zero commitments,” said Andrew McRae, policy chair for FSB Scotland.

“Indeed, they are supportive of government ambition in this area. However, what is currently missing is a clear idea of what support government will provide to them in order to make this transition actually happen.”

FSB Scotland surveys show almost a third of members have already taken steps to cut emissions, but only a small proportion had moved to zero-carbon heating. Almost two thirds said there was insufficient support available to cushion the impact on their business.

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Meanwhile, data shows around 20,000 small firms were lost last year in Scotland. “The net zero transition bill is predicted to run into several billions, but government has so far only been able to commit to providing a small portion of that cost,” Mr McRae added.

“At a time when small businesses are also facing the full force of economic challenges, not least through rapid hikes in costs and shrinking margins, it’s out of the question to expect them to bear the lion’s share of the costs themselves.”