MHCLG has provided for cladding removal and remediation:

(a) 2023-24, £647m (Actuals)

(b) 2024-25, £438m (Actuals)

(c) 2025-26 £1003m (Current financial year budget allocation)

Following the Spending Review which agreed the overall funding envelope for MHCLG, the department will undertake a detailed budget allocation process t for 2026-27 onwards. MHCLG funding for 2026-27 onwards is therefore not currently delegated to a programme level.

We estimate that we will need to raise £3.4billion pounds from the Building Safety Levy. The levy is due to come into operation in October 2026 and is likely to be in operation for ten years. The levy will be reviewed every three years.

The Building Safety Levy (levy) is one of a package of measures to make sure that the burden of paying for fixing historical building safety defects does not fall on leaseholders or further burden taxpayers.

Developers will pay the levy on new residential development, subject to certain exemptions. It will come into effect in Autumn 2026. Anyone submitting an application for building control approval with full plans, a building control approval application (made to the Building Safety Regulator), or an initial notice for construction of, or works to, one or more dwellings or purpose built student accommodation (PBSA), after the levy has come into effect, will be liable to pay the levy, except where an exemption applies. The levy will not apply to applications for new dwellings that were submitted before the coming-into-force date.

The design of the levy maintains viability of new developments as far as possible through variable levy rates at local authority level and a 50% discount on developments on previously developed land, reflecting the additional costs of building on these sites. Affordable housing and community facilities are exempt from the levy.

The rates for each local authority can be found at Annex A: Levy Rates of the Building Safety Levy: Technical consultation response.

The Building Safety Levy (levy) is one of a package of measures to make sure that the burden of paying for fixing historical building safety defects does not fall on leaseholders or further burden taxpayers.

Developers will pay the levy on new residential development, subject to certain exemptions. It will come into effect in Autumn 2026. Anyone submitting an application for building control approval with full plans, a building control approval application (made to the Building Safety Regulator), or an initial notice for construction of, or works to, one or more dwellings or purpose built student accommodation (PBSA), after the levy has come into effect, will be liable to pay the levy, except where an exemption applies. The levy will not apply to applications for new dwellings that were submitted before the coming-into-force date.

The design of the levy maintains viability of new developments as far as possible through variable levy rates at local authority level and a 50% discount on developments on previously developed land, reflecting the additional costs of building on these sites. Affordable housing and community facilities are exempt from the levy.

The rates for each local authority can be found at Annex A: Levy Rates of the Building Safety Levy: Technical consultation response.

The Building Safety Levy (levy) is one of a package of measures to make sure that the burden of paying for fixing historical building safety defects does not fall on leaseholders or further burden taxpayers.

Developers will pay the levy on new residential development, subject to certain exemptions. It will come into effect in Autumn 2026. Anyone submitting an application for building control approval with full plans, a building control approval application (made to the Building Safety Regulator), or an initial notice for construction of, or works to, one or more dwellings or purpose built student accommodation (PBSA), after the levy has come into effect, will be liable to pay the levy, except where an exemption applies. The levy will not apply to applications for new dwellings that were submitted before the coming-into-force date.

The design of the levy maintains viability of new developments as far as possible through variable levy rates at local authority level and a 50% discount on developments on previously developed land, reflecting the additional costs of building on these sites. Affordable housing and community facilities are exempt from the levy.

The rates for each local authority can be found at Annex A: Levy Rates of the Building Safety Levy: Technical consultation response.