38
Taxpayer exposure to building remediation costs could exceed the stated £5.1 billion cap.
Conclusion
HM Treasury has agreed to provide short–term funding that would allow remediation to progress in advance of the Levy recouping funds in later years. Based on MHCLG’s financial planning, the NAO highlighted that total taxpayer exposure could reach a maximum of £6.3 billion in 2030-31 before all Levy receipts are collected.63 When we asked MHCLG what impact its acceleration plans might have on the spending cap, MHCLG assured us that taxpayer contributions towards remediation costs would remain capped at 60 C&AG’s Report, para 1.11; Ministry of Housing, Communities and Local Government, Cladding remediation unit costs: analysis of high-rise non-ACM buildings - GOV.UK, December 2024 61 RDC0006 Written evidence submitted by the Home Builders Federation; RDC0145 Written evidence submitted by End Our Cladding Scandal 62 Qq 88, 91, 93–96; C&AG’s Report, figure 10, para 3.11 63 C&AG’s Report, paras 16, 3.12 23 £5.1 billion. We therefore asked MHCLG whether accelerating remediation might increase taxpayer exposure, but officials did not provide an update on the figure. In a letter following the evidence session, MHCLG advised that its figures were estimates based on several factors including the total number of buildings requiring remediation, remediation costs, how fast buildings are fixed, and the quantum of levy receipts (which itself depends on new houses built). It assured us it continued to examine these and would be updating forecasts later in the year.64 Managing risk of fraud
Government Response
A response document is linked to this report, dated 16 May 2025. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
17th Report - The Remediation of Dangerous Cladding
21 Mar 2025
HC 362
Addressee Bodies
HM Treasury
Timeline
Recommendation age
1.5 yrs
Report published
21 Mar 2025