Written statement on Building Safety Levy

Statement made by Alex Norris, Parliamentary Under Secretary of State for Building Safety, Fire and Local Growth

The Government is committed to securing the swift remediation of buildings with historical building safety defects. The Building Safety Levy is a key part of the remediation funding package, which protects leaseholders from costs and ensures taxpayers are not further burdened. We currently estimate the levy will need to raise £3.4 billion over 10 years or more. Today we took an important step towards implementing the levy and will lay the draft Building Safety Levy (England) Regulations in Parliament as we committed to do in the statement I made to the House on 24 March. The draft Regulations are subject to the affirmative Parliamentary procedure. Subject to Parliamentary approval and the making of the Regulations, the Regulations provide for all aspects of the levy including how the levy will be calculated and administered and provide that the levy will start being charged on certain applications and notices from 1^st October 2026.

Alongside the Regulations, to help stakeholders prepare, we have also published operational guidance explaining how the levy is intended to be charged, collected and passed back to central government. The guidance is aimed at a broad range of users, including the housebuilding sector, local authorities, registered building control approvers (RBCAs) and the Building Safety Regulator to help users understand their roles and obligations. Stakeholders involved in the building safety levy now have the information they need to prepare in earnest for its launch on 1^st October 2026. My officials have a comprehensive engagement programme planned and will work with stakeholders to support them to be ready for levy launch next year. This includes regular meetings and webinars with local authorities, as well as targeted support for RBCAs and developers.

Local authorities with building control responsibilities will act as collecting agents for the levy. New burdens funding will be provided to local authorities for set-up costs. Collecting authority administrative costs will be recovered from levy revenues received, with the balance transferred to central government.

Subject to Parliamentary approval, and as previously announced, the levy will be charged on certain building control applications and notices. Applications and notices for the provision of new dwellings or student accommodation in England submitted on or after 1^st October 2026 will be subject to the levy regime. Exemptions from the levy charge include affordable housing, supported housing and developments of fewer than 10 dwellings. Any housing built by non-profit providers of social housing will be exempt. The levy rates vary by local authority area to take account of differences in housing development economics across different local authority areas and across previously and non-previously developed land. These rates were published on 24^th March this year and are set out in the regulations. A 50% discount rate will be charged for development on previously developed land, to reflect the often higher cost of such development. The levy will need to be paid before the earlier of first occupation and submission of the notice or application required at completion stage.

I will also publish an assessment of impact and rates methodology note for the levy. The assessment sets out the expected operational impacts on local authorities and house builders, amongst other things. The methodology note sets out the 5-step approach taken to calculate the levy rates that are set out in the regulations.