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The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Blake of Leeds) (Lab)

Speaking in the House of Lords on 2 September 2026

Debate

Building Safety Levy (Amendment) (England) Regulations 2026

Contribution

My Lords, the remediation of residential buildings with unsafe cladding in England is a priority for this Government. Nine years on from the Grenfell tragedy, there is no justification for any building to remain unsafe. Helping residents to feel safe in their homes and move on from this issue is crucial work. The Government are committing £5.2 billion of taxpayers’ money to the cost of remediation and the building safety levy is an essential part of the remediation funding package, which will protect leaseholders from costs and ensure that taxpayers are not further burdened. We estimate that the levy needs to raise £3.4 billion, likely over a 10-year period. The revenue target may be adjusted in accordance with the number of buildings requiring remediation and the costs of works. The levy regulations were made in November 2025 and will come into force on 1 October 2026. The draft amending regulations before the Committee today clarify how the levy will work and are intended to come into force on 1 October. The levy will be charged on certain building control applications for new residential floor space in England. It is important to note that developers have known about the levy since February 2021 and its rates since March 2025, providing a significant lead-in period to plan for and incorporate these costs into their projects. It will start being charged on new applications from 1 October 2026. The 2025 regulations allow for development on previously developed land, often referred to as brownfield land, to benefit from a 50% discount levy rate. This recognises the higher costs of building on this type of land and therefore protects the viability of development on these brownfield sites. My officials received feedback that the definition of previously developed land was not clear. In particular, stakeholders noted that it was not clear whether car parks and other areas of hard standing that would appear previously developed would actually qualify for the discount. Our intention has always been to support development of sites having these kinds of features, so these regulations amend the definition to make it clear where areas of hard standing can qualify. This will better reflect the original policy intention and, hopefully, make it easier for local authorities and developers to understand which sites qualify for the discount, reducing costly and time-consuming disputes. These regulations and the updated guidance provide more information about how this change works. We also have a small number of minor technical amendments and corrections included in the instrument, including setting clearer time periods for spot checks, clarifying levy information requirements, amending how levy update notices are constituted and clarifying processes for revised levy determinations, refunds, reviews and appeals. We will keep the rates and processes under review and we will report at least every three years. I beg to move.

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