Select committee: Public Accounts Committee

Conclusion 46

17th Report - The Remediation of Dangerous Cladding Published 21 Mar 2025 Addressed to HM Treasury
Conclusion (the committee's words)
We asked MHCLG about the potential impacts of the Building Safety Levy on housing provision. MHCLG said it had not published any impact assessment or produced specific numbers, but believed the impact would be relatively small. It told us that it had deliberately designed the Levy to take into account factors to protect housing supply. It explained that Levy design features, such as discounted rates for brownfield sites and exemptions for affordable housing, would protect viability and minimise the impact of the Levy on building supply.79 In a follow up letter, MHCLG told us that it thought that multiple factors will affect the number of houses developers are able to build including finance, land prices, labour and materials costs.80 78 Q 5; C&AG’s Report, para 3.11; RDC0006 Written evidence submitted by the Home Builders Federation 79 Qq 97–99 80 Letter from Ministry of Housing, Communities and Local Government to Committee of Public Accounts, 18 February 2025 27

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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