Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Building Safety Levy: Guidance, updated 2 July 2026, what is the last estimate of the profile of the levy over the 10 year period, how much will be raised in each financial year from its commencement, and to what extent levy revenues are linked to the annual level of housebuilding.

The Building Safety Levy came into force on 1 October 2026. The Government expects the levy to raise around £3.4 billion over approximately 10 years to help fund the remediation of unsafe buildings and ensure that the housing sector makes a fair contribution towards addressing historical building safety defects.

The latest Office for Budget Responsibility economic and fiscal outlook estimates levy receipts of £55 million in 2027-28, £235 million in 2028-29, £340 million in 2029-30, £395 million in 2030-31 and £459 million in 2031-32. No revenue is expected in this financial year (2026-27). These forecasts were published in the October 2026 Economic and fiscal outlook, certified by the Office for Budget Responsibility.

The Building Safety Levy is charged on new residential development and revenues are therefore linked to levels of housebuilding. However, revenues are also influenced by a range of factors, including the mix of developments coming forward and the application of exemptions and discounts. The levy has been designed to minimise impacts on housing supply while ensuring the industry makes a fair contribution towards the cost of remediating unsafe buildings.