The consultation proposes rates
for ‘orphaned’ blocks fund will vary accross the country
The government is pressing ahead
with the controversial building safety levy designed to raise £3bn through a
planning charge on private development by issuing a consultation on how the
levy will operate.
The consultation issued by the
Department for Levelling Up, Housing and Communities (DLUHC) said levy rates
for the fund, which is expected to raise £3bn over 10 years, could be altered
depending on where in the country a building is.
Building owners or developers
could pay lower rates in areas where land and house prices are less expensive,
suggested the consultation. The housebuilding sector has called the levy “unacceptable”.
The money raised is to pay for
remediation works needed on ‘orphaned’ buildings in need of fire safety repairs
– ones where the owner cannot be traced or contacted – that are above 11 metres
in height.
The consultation said developers
of residential buildings will have to pay a contribution regardless of the
height of the planned homes. If they do not, they could be prevented from
proceeding with current building projects through the planning system, which
the department said could “impact future revenues”. It is expected the levy
will be paid when developers are seeking planning permission.
The consultation also suggested
local authorities were “best placed to act as the collection agents as they
have the necessary systems, data, knowledge, and relationships in place with
the developer sector”.
Affordable homes are likely to be
exempt from the levy charge to ensure supply, the government said. Community
buildings, including NHS facilities, children’s homes and refuges, including
those for victims of domestic abuse would also be exempt, it added.
Lee Rowley, minister for local
government and building safety, said: “We have been clear that developers
must pay to fix building safety issues and the building safety levy is an
important part of making that a reality.
“Today’s consultation will give industry
and local authorities an opportunity to work with us going forward.”
Views are sought from all
interested parties on how the levy will work, what the rates will be, who must
pay, sanctions and who is responsible for collecting the levy.
The department said it wanted
developers of all sizes, building control professionals and local authorities
to take part in the consultation.
The levy, first announced in February last year, will be
regularly reviewed and adjusted according to changing circumstances, such as
wider economic conditions. Plans to extend it to cover all residential buildings were confirmed in
April 2022 but the government aims to protect small and medium
sized enterprises by excluding smaller projects.
The levy is in addition to the pledges announced earlier
this year, under which homebuilders have committed to fix fire-safety defects
in buildings over 11 metres they have played a role in developing or
refurbishing over the last 30 years in England. This equates to a commitment of
at least £2 billion.
Taken from an article in Housing Toady by 22 November 2022