The Government has launched a consultation into a new residential developer tax to help towards the cost of removing unsafe cladding.

The new tax, which was originally proposed in February, would raise at least £2bn over the next ten years and would apply to residential developers that make profits over £25m.

The money raised would contribute towards the cost of cladding remediation work and would apply to converting existing buildings as well as new construction.

Financial secretary to the Treasury, Jesse Norman, said: 'Ending the use of unsafe cladding is a priority for the government, as it builds back better from the pandemic. Given the significant costs associated with the removal of unsafe cladding, it is right to seek a fair contribution from the largest developers in the residential property development sector to help fund it.

'The Government wants to ensure this tax is proportionate and works as intended, which is why it is launching this consultation today.'