Spending boost for dangerous cladding removal in Autumn Budget

The new Autumn budget announced on 30th of October includes provisions for the recladding acceleration scheme. The government has allocated £1 billion specifically for removing dangerous cladding from buildings. This funding is part of a broader investment in housing safety and aims to expedite the process of making buildings safer for residents.

The £1 billion allocated for the recladding acceleration scheme will be distributed with a focus on the highest-risk buildings.

Key points:

High-Risk Buildings: The primary focus will be on residential buildings over 18 metres that have unsafe cladding. These buildings will receive priority funding to ensure the removal of dangerous cladding as quickly as possible.

Lower-Risk Buildings: Buildings between 11 and 18 metres will also be eligible for funding. The government will offer a long-term, low-interest financing arrangement to cover the costs of cladding removal for these buildings. Leaseholders in these buildings will not pay more than £50 a month towards the removal costs.

Developer Contributions: To support the funding, a new levy and tax on developers will be introduced. This will ensure that the property development sector contributes to the remediation costs, reflecting the benefits they gain from a safer housing market.

Implementation and Oversight: The government will work closely with industry stakeholders to ensure the efficient and effective use of funds. This includes collaborating with lenders, surveyors, and building owners to streamline the process and ensure compliance with safety standards.

This should help speed up the necessary work on high-risk buildings, ensuring that they meet safety standards more quickly.

How else will the Autumn Budget effect the construction industry?

The new budget also has several implications for the construction industry:

Increased National Insurance Contributions: Employers will see a rise in National Insurance contributions from 13.8% to 15% starting April 2025. This increase will affect the overall cost of labour for construction companies.

Capital Gains Tax Changes: The lower rate of capital gains tax on the sale of assets will increase from 10% to 18%, and the higher rate from 18% to 24%. This could impact construction firms involved in property development and sales.

Business Rates Relief Reduction: The relief for retail, leisure, and hospitality businesses will drop from 75% to 45%. While this doesn’t directly target construction, it could affect the demand for new commercial projects in these sectors.

Investment in Housing: There is a significant investment of £5 billion in housing, which includes increasing the affordable homes programme to £3.1 billion and spending £1 billion on removing dangerous cladding. This could lead to more construction projects and opportunities in the housing sector.

Support for Social Care and NHS: Increased funding for social care and the NHS could lead to more construction and renovation projects for healthcare facilities.

Energy Efficiency and Green Initiatives: The budget includes measures to improve energy efficiency and support green construction practices, which could lead to new projects focused on sustainability.

Sources; gov.uk / news.sky.com