Source · Select Committees · Public Accounts Committee
Recommendation 45
45
Accepted
Building Safety Levy raises concerns about impact on new housing delivery and smaller developers.
Conclusion
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
Government Response Summary
The government committed to publishing an impact assessment alongside draft levy regulations later this year and providing an update to the Committee before the end of 2025 on the interaction between remediation policies and housebuilding ambitions.
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.