Source · Select Committees · Public Accounts Committee
Recommendation 44
44
Accepted
MHCLG acknowledges remediation spending by social housing providers reduces new home building commitments.
Recommendation
We asked MHCLG about its understanding of the impact that £3.8 billion of self–remediation costs might have on social sector housebuilding, and whether it had undertaken any assessment of how many houses would not be built because money was being spent on remediation. MHCLG told us that it was “certainly the case” that social housing providers were having to balance a range of obligations. We therefore asked if it was reasonable to conclude that when local authorities were deciding whether and when to complete remediation works, they were having to cut back on their commitments on new homes. MHCLG accepted that where a social housing provider was spending money on one type of activity, it would not be able to spend money on another type of activity. It told us that this was one of the reasons why Ministers planned to take stock of the overall position of the sector ahead of a strategy in the spring.76 MHCLG wrote to us after our evidence session to tell us about its response to the Grenfell Tower Inquiry Phase 2 report, and that it was taking forward an “ambitious programme of social housing reform” to change how residents’ voices are heard and acted on, to “keep people at the heart of policy and practice.” 77 73 Qq 21,60, 62; C&AG’s Report, para 3.11 74 Qq 28, 64 75 Q 28; Letter from National Housing Federation to Committee of Public Accounts, 11 February 2025 76 Qq 62-64, 74 77 Letter from Ministry of Housing, Communities and Local Government to Committee of Public Accounts, 18 February 2025 26
Government Response Summary
The government agrees to write to the Committee before the end of 2025, providing an update on the interaction between remediation policies and housebuilding ambitions. It will also publish an impact assessment alongside draft Building Safety Levy regulations later this year.
Government Response
Accepted
HM Government
Accepted
7.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2025 7.2 The government will write to the Committee before the end of 2025 to provide an update on the interaction between remediation policies and housebuilding ambitions. Specifically on the Building Safety Levy, the government will publish an impact assessment alongside the draft levy regulations that will be put before Parliament later this year. The levy has been designed to minimise any detrimental impact on housing supply, whilst balancing the need to raise the revenue required to remediate buildings. It will come into effect in Autumn 2026.