Buildings: Cladding

Lord Newby Excerpts

Thursday 28th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, we have not made any further announcements about the details of the way we want to support leaseholders in medium-rise blocks. The new Secretary of State is looking very closely at how we can best protect leaseholders in these buildings from unaffordable costs. In the vast number of buildings, there is no need for wholesale, expensive remediation, as the recent expert committee, led by Dame Judith Hackitt, pointed out.

[Lord Newby (LD)]

My Lords, last week the Minister said that details of the residential property developer tax would be announced yesterday, and that the figure he had given—the receipt of £2 billion over 10 years—was the absolute minimum. Yesterday, the Chancellor announced a rate of tax, but I am unaware that he gave an estimate of how much money would be raised. Could the Minister say what the Government’s current estimate is of the amount that that tax will raise? Secondly, the Chancellor said yesterday that the tax will be used to fund the £5.1 billion of which the Minister is so proud. Is it really the case that this tax will not benefit a single additional leaseholder?

[Lord Greenhalgh (Con)]

My Lords, we recognise the need to get those who contributed greatly to the crisis that we find ourselves in to make a contribution. This is just one of the ways we are doing this. It was announced that the residential property developer tax would be levied on developers with profits over £25 million, at a rate of 4%. The estimates from the Treasury are that that will bring in at least £2 billion. That is the commitment over 10 years. We also have the gateway 2 levy, which will raise funding as well. This will also contribute towards the situation that leaseholders find themselves in.