William Eichler 26 March 2025

Cladding safety tax delayed one year

Cladding safety tax delayed one year image
Image: Alex Danila / Shutterstock.com.

A tax to fund the removal of unsafe cladding from homes has been delayed one year over fears it might undermine the Government's housebuilding plans.

The Ministry for Housing, Communities and Local Government (MHCLG) has confirmed the Building Safety Levy will be introduced from autumn 2026 rather than this year as initially planned.

The decision followers a letter from developers to Deputy Prime Minister Angela Rayner warning the Government's plan to deliver 1.5 million houses was being ‘threatened by the imposition of new taxes.’

A MHCLG spokesperson said the Government was determined to improve housing safety but added the delay would ‘give developers more time to factor levy costs into their plans’.

Ministers have set aside £5.1bn to resolve the dangerous cladding crisis. However, a recent report by the Public Accounts Commission (PAC) criticised the Government’s approach to the crisis, warning it ‘appears complacent’.

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