Budget 2021: The £5 billion fund for removing unsafe cladding, and how it will be funded through a residential property tax

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Budget 2021: The £5 billion fund for removing unsafe cladding, and how it will be funded through a residential property tax

The Chancellor confirmed that approximately £3 billion of the fund would be delivered over the course of the spending review, which runs until 2026.

A £5 billion grant, funded by a previously announced residential property developer tax (RPDT), will be set aside to pay for the removal of unsafe cladding from the country’s highest-risk buildings.

The Chancellor confirmed that around £3 billion would be delivered over the course of the spending review, which runs until 2026.

Rishi Sunak also confirmed that part of the funding would come from a 4% RPDT levied on property developers with annual profits of more than £25 million.

According to Treasury documents, the £5 billion cladding fund will be prioritized for “the highest risk buildings” so that “everyone can feel safe and secure in their home.”

In order to ‘turn Generation Rent into Generation Buy,’ the government has also confirmed funding for its housing-building program.

A further £1.8 billion will be invested as part of the government’s commitment to spend £10 billion between now and 2026 ‘unlocking’ over a million new homes.

The planned £11.5 billion investment in the Affordable Housing Programme was also confirmed by the Chancellor.

According to him, the £7.5 billion spent during the spending review period will be the largest cash investment in housing in a decade.

The RPDT and cladding fund, on the other hand, were announced by the government in February and are set to take effect in April of next year.

Campaigners have previously expressed concerns that the money set aside to repair flammable materials in apartment blocks is insufficient, estimating that between £10 billion and £15 billion will be required.

The Affordable Homes Programme, likewise, was first announced in August as part of a larger housing initiative.

According to figures released by the Department for Levelling Up, Housing and Communities, removing the cladding from high-rise buildings will take another three and a half years.

According to the most recent government figures, 94% of all identified high-rise residential and publicly owned buildings had completed or begun remediation work to remove or replace unsafe aluminum composite material by the end of September.

This equates to approximately 445 structures.

The plans, according to Mr Sunak, indicate that the government is “spending.”

UK news summary from Infosurhoy

Budget 2021: The £5 billion fund for removing dangerous cladding, and how it will be funded through a residential property tax

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Budget 2021: The £5bn fund for removing unsafe cladding, and how a residential property tax will fund it

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