Source · Select Committees · Public Accounts Committee
Recommendation 37
37
Accepted in Part
Government plans to cap public remediation funds at £5.1 billion, recouping remainder via levy.
Recommendation
Based on its central estimate of £16.6 billion for total remediation costs, MHCLG anticipated that around £7.5 billion would be paid for directly by private building owners, developers and social housing providers, and the remaining £9.1 billion would be funded through MHCLG’s grant programmes. MHCLG planned to cap the amount of public money spent on remediation at £5.1 billion, and to recoup any spending over this amount from developers through a new Building Safety Levy (the Levy) on new developments. MHCLG told us it was keen to reduce the uncertainty around building numbers and how much will need to be paid out through government grant programmes but explained that the duration of the Levy could be changed as needed to ensure it covered the final bill.62
Government Response Summary
The government agrees and will publish the latest building number estimates by Summer 2025. However, the exact timing for publishing cost estimates and works completion dates is dependent on the 2025 Spending Review.
Government Response
Accepted in Part
HM Government
Accepted in Part
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 5.2 The government will publish latest building number estimates by the summer. The exact timing of publication of estimates of costs and works completion dates, however, will depend on the outcome of the forthcoming Spending Review. A firmer publication timeline can be provided once this is known. 5.3 The government welcomes the review by Paul Morrell OBE and Anneliese Day KC. Their review maps out the existing system, identifies weaknesses, and sets out recommendations for addressing these where they considered it appropriate. It makes clear this is a complex area in need of reform. The Construction Products Reform Green Paper, published on 26 February 2025, is the government’s direct response to the review and signals its commitment for comprehensive proposals for system wide reforms to the construction products regime to give consumers confidence and underpin supply chains and housing delivery.