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Building Safety Fund

Question for Ministry of Housing, Communities and Local Government

UIN 153224, tabled on 11 February 2021

To ask the Secretary of State for Housing, Communities and Local Government, whether the Government plans to recoup the costs of the Building Safety Fund from residential property developers.

Answered on

25 February 2021

The Building Safety Fund should not be the only means of funding the remediation of unsafe cladding on high-rise residential buildings. Building owners should meet the costs without passing them on to leaseholders wherever possible, through their own resources or by recovering costs from applicable warranty schemes or from the developers or contractors who were responsible for the installation of unsafe cladding, as is happening with more than half of the private sector buildings with ACM cladding. Applicants to the Building Safety Fund are required to demonstrate that they have taken all reasonable steps to recover the costs of replacing the unsafe cladding from those responsible.

Furthermore, as announced on 10 February 2021, we are going to introduce a developer levy through the Building Safety Bill to be targeted and applied when developers seek permission to develop certain high-rise buildings in England. In addition, we will introduce a new tax for the UK residential property development sector in 2022. The levy and tax will ensure that the largest property developers make a fair contribution to the remediation programme. The Government will consult on the policy design of the tax in due course.