Select committee: Public Accounts Committee

Conclusion 45

17th Report - The Remediation of Dangerous Cladding Published 21 Mar 2025 Addressed to HM Treasury
Conclusion (the committee's words)
In its written evidence to us, the Home Builders Federation (HBF), which represents the home building industry, told us of its concerns about the possible impact of the Building Safety Levy on new housing delivery. MHCLG currently expects to raise £3.4 billion over 10 years from the new levy. The HBF noted that, in the absence of detailed levy rates, which it did not expect to be published until later in 2025, it anticipated that there would be an impact on the supply of new homes, especially affordable housing and especially in the south–east of England. The HBF also told us that it was concerned that many smaller developers will go out of business as a result of the financial burden being placed on the home building industry.78

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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