Budget 2021: Gov't commits £5bn to remove cladding from high risk buildings

It will be funded by a tax, which will have a rate of 4%, and hit developers who have an annual profit of £25m or more.

Budget 2021: Gov't commits £5bn to remove cladding from high risk buildings

Chancellor Rishi Sunak has pledged £5bn to remove cladding from the most high-risk buildings in a move that will be funded by a tax on property developers.

The tax, which will have a rate of 4%, will hit developers who have an annual profit of £25m or more.

The Chancellor said: "We are confirming £5bn in funding to remove cladding from the most high-risk buildings.

"This will be funded by the residential property developers tax which I can confirm will be levied on developers with profits over £25m at a rate of 4%."

Recent analysis of government figures found that cladding will not be removed from all at-risk buildings until seven and a half years after the Grenfell Tower tragedy if the work continues at its present rate.

The figures Department for Levelling Up, Housing and Communities shows that it will take another three and a half years to remove the cladding from high-rise buildings.

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