"Any further levy is not proportionate and poses a serious threat to businesses, jobs, investment in new sites, housing supply and affordable housing provision."
The new levy is expected to raise up to £3 billion to fix “orphan” buildings between 11m and 18m high where those responsible for the buildings cannot be identified. It will be chargeable on all new residential buildings in England and is additional to the Residential Property Developer Tax - a new 4% surcharge on corporation tax payable by large developers from April 1 this year.
The new levy is also in addition to the building safety pledge in which developers agree to fix all their buildings over 11m high built in the past 30 years.
HBF executive chairman, Stewart Baseley, said: “We fully support the principle that leaseholders should not pay to remediate their buildings. UK housebuilders have already committed to remediate all their own buildings, plus £3 billion (through RPDT) to pay for those built by foreign builders, local authorities and other parties. Any further levy is not proportionate and poses a serious threat to businesses, jobs, investment in new sites, housing supply and affordable housing provision. Government must act to make other responsible parties pay their share and not take the easy option of targeting UK builders again for a problem they did not create. Saying ‘it’s too hard’ to get contributions from other parties is unacceptable and is an affront to UK businesses who employ hundreds of thousands and pay billions in UK taxes.”
In a statement, the Department of Levelling Up, Housing and Communities (DLUHC) says that 35 housebuilders have now signed up to the building safety pledge which was devised following negotiations over the past few months with HBF and is set to raise £2 billion towards remediation.
It is understood that 53 housebuilders were asked to commit to the pledge. DLUHC said: “For the companies yet to make the pledge, the secretary of state has also confirmed there is little time left for them to sign up, and that those who continue to refuse will face consequences if they fail to do so.” It adds that under new powers those who refuse to sign will be blocked from building and selling new homes.
Gove said: “Today marks a significant step towards protecting innocent leaseholders and ensuring those responsible pay to solve the crisis they helped to cause. I welcome the move by many of the largest developers to do the right thing. But this is just the beginning. We will do whatever it takes to hold industry to account, and under our new measures there will be nowhere to hide.”
DLUHC, in its statement, added: “Cladding and insulation manufacturers are yet to accept their share of responsibility and come forward with a proposal. The secretary of state has also today written to the Construction Products Association and warned he will do whatever it takes to hold cladding and insulation manufacturers to account.”
