Developer tax to fund unsafe cladding removal

Grant Prior 3 years ago
Share

The government has pledged an extra £3.5bn to fund the removal of unsafe cladding from high rise buildings.

Housing Secretary Robert Jenrick said the government will “fully fund the cost of replacing unsafe cladding for all leaseholders in residential buildings 18 metres (6 storeys) and over in England.”

Residents in lower-rise buildings between 11 and 18 metres will “gain new protection from the costs of cladding removal with a generous new scheme.”

This will pay for cladding removal through a long-term, low interest, government-backed “financing arrangement.”

Under the scheme, no leaseholder will ever pay more than £50 a month towards the removal of unsafe cladding.

A new tax on developers is also being drawn-up to help fund the cladding removal programme.

It will raise at least £2bn and “will ensure that the largest property developers make a fair contribution to the remediation programme, reflecting the benefit they will derive from restoring confidence to the UK housing market.”

The government said it will consult on the policy design in due course before it is introduced next year.

A new developer levy will also “apply when developers seek permission to develop certain high-rise buildings in England.”

Jenrick said: “Our unprecedented intervention means the hundreds of thousands of leaseholders who live in higher-rise buildings will now pay nothing towards the cost of removing unsafe cladding.

“Remedying the failures of building safety cannot just be a responsibility for taxpayers.

“That is why we will also be introducing a levy and tax on developers to contribute to righting the wrongs of the past.”

Developers have reacted angrily to the plan.

Andrew Southern, Chairman of property developer Southern Grove said: “Taxing developers, most of whom weren’t responsible for the cladding crisis, is just laughable.

“Why should a company that has never installed dangerous cladding, and perhaps never built high rise blocks in the past, be tarred with the same brush and penalised when they’re no more responsible for this scandal than those in other sectors building cars, running our hospitals and educating our children?

“This sort of regressive tax will only stagnate housebuilding, which is the exact opposite of what the UK needs.

“By applying it only to the largest developers building the tallest buildings, it will also disincentivise creation of housing in the high density areas that are badly in need of new stock.”

 

Latest news

Geoffrey Osborne supply chain hit for £26m

More than 500 suppliers and subcontractors left holding unpaid bills
3 days ago

Employee-owned Neilcott staff share £250,000 payout

Employee-owned building contractor sales jump 38% to £139m
2 hours ago

Race for £800m South West Wales framework

Up to 16 firms face fight to renew spots on regional contractors framework
9 hours ago

SME contractors agree 4% pay rise for site workers

Workers will also get an extra day of holiday
3 days ago

South East expansion paying off for Meldrum Group

Turnover up to £55m as North East based contractor expands national coverage
1 hour ago

Wates boosts paternity leave to 12 weeks

Latest leave benefits apply from first day of working for contractor
2 hours ago

Taylor Wimpey chief honoured with CBE

Jennie Daly recognised in King's Birthday honours
2 days ago

Labour to mothball £320m A27 job to fix potholes

Manifesto confirms Arundel Bypass canned as "poor value for money"
3 days ago

Lendlease’s £1.9bn Smithfield Birmingham scheme approved

Initial work to start later this year despite questions over Lendlease's degree of involvement
3 days ago

Crest Nicholson rejects £650m Bellway bid

Second Bellway approach rebuffed
3 days ago

Hill submits £800m East London estate rebuild plan

Over 1,900 homes to be built in five phase at Teviot Estate in Poplar
4 days ago

Plan approved for 8,500-seat Edinburgh indoor arena

Construction expected to start next year once a contractor is appointed
3 days ago

Statom starts on £25m Bristol Airport precast car park

Major work package on transport upgrade being overseen by Griffiths Farrans JV
4 days ago

Build problems plunge Crest Nicholson to a £31m loss

House builder unearths more defects on completed sites
4 days ago

Rebooted Amey lifts contract win rate to 1 in 3 bids

Amey chief says firm exceeded expectations in first year under new owners
4 days ago

BAM Nuttall fined £2.3m after worker drowned

Court hears how series of safety failures led to tragedy
5 days ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
5 days ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
5 days ago

Galliford Try wins £69m Scottish school job

Deal sealed on Paisley Grammar School project in Renfrewshire
4 days ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
5 days ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
5 days ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
5 days ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
5 days ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
6 days ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
5 days ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
5 days ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
6 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
6 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
6 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
6 days ago

Contractor services