Select committee: Public Accounts Committee

Conclusion 7

17th Report - The Remediation of Dangerous Cladding Published 21 Mar 2025 Addressed to HM Treasury
Conclusion (the committee's words)
We are not convinced that MHCLG is taking the potential impact of its remediation plans on wider housebuilding targets seriously enough. The government has pledged to build 1.5 million homes during this Parliament. The construction sector is reporting workforce shortages. There is a risk that MHCLG’s approach to remediation could negatively impact the delivery of this target, and the construction of affordable housing in particular. Paying for remediation works risks diverting social housing providers’ resources away from building new housing. Housing associations in London are reporting a 90% drop in social housing starts over the last year. There are also concerns that the cost to developers of the Building Safety Levy may further reduce the supply of affordable housing. MHCLG has not published an impact assessment of these policies on the viability of housebuilding, claiming both that it expects the impact to be small and that it is likely to be affected by too many other factors. recommendation MHCLG should, by the end of 2025, publish a formal assessment of the impact of its remediation policies (including the Building Safety Levy) on housebuilding projections in both the social and private sectors and what action needs to be taken to ensure the building of 1.5 million homes is not affected by these policies. 8 1 Accelerating remediation Introduction

From: Public Accounts Committee, 17th Report - The Remediation of Dangerous Cladding (HC 362), 21 March 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Seventeenth Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

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Treasury minutes: Government response to the Committee of Public Accounts on the Seventeenth report from Session 2024-25

Published 16 May 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government agrees with most of the Committee's recommendations on the remediation of dangerous cladding, with target dates between summer and December 2025, but disagrees with the recommendation on construction manufacturers paying a share of remediation costs.

  • On the Remediation Acceleration Plan, the government agrees to update the Committee in Autumn 2025. It says it "has not seen significant evidence that non-cladding defects are slowing down remediation" but is committed to removing blockers.
  • On construction manufacturers paying a share of remediation costs, the government disagrees. It says it is consulting on redress routes in the Construction Products Reform Green Paper and that leaseholders and tenants are protected from the cost of cladding remediation.
  • The government will publish latest building number estimates "by the summer", but the timing of cost and completion date estimates "will depend on the outcome of the forthcoming Spending Review".
  • On insurance, the government agrees and will share an update on progress by the end of 2025. It is gathering data on premiums and is considering whether government "might support industry to reduce fire related liabilities".

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