Chancellor announces £1bn Building Safety Fund for ‘all forms’ of cladding removal

However, with the total funding costs for removal work expected to easily top £10bn in the social housing sector alone, it is not yet clear how the government will direct and prioritise the work.

Budget documents made it clear that the £1bn is additional funding on top of the £600m already announced – taking the total pot to £1.6bn

Announcing the measure, Mr Sunak said: “Two-and-a-half years on, we’re still grappling with the tragic legacy of Grenfell. Last year we announced £600m to remove aluminium composite material, or ACM, from high rises.

“Today I go further. Expert advice is clear that new public funding must concentrate on removing unsafe materials from high-rise residential buildings. So today I am creating a new Building Safety Fund worth £1bn.

“That new fund will go beyond dealing with ACM to make sure that all unsafe combustible cladding will be removed from every private and social residential building above 18m.”

The MHCLG said it expects social housing providers which are funding removal work to continue to do so without accessing the fund “so we can prioritise this funding on those who cannot afford the cost, creating a barrier to remediation and safety”. It added that the £1.6bn “will be the limit to the government’s funding for remediation”.

Building owners will be required to pursue contractors and warranty providers for compensation, which will be repaid to government to cover the cost of the funding.

“If building owners continue to fail in their responsibility to remediate unsafe cladding systems, despite this additional funding, the government will not hesitate to encourage and support enforcement action through local authorities and fire and rescue services,” a statement said.

Inside Housing’s End Our Cladding Scandal campaign called on the government to create a building safety fund not limited to ACM – this announcement marks a major victory in that campaign, which has been run in partnership with resident groups from affected buildings.

Documents released alongside the Budget confirmed that the funding is additional.

It said: “Following the Grenfell tragedy, one of the government’s most important objectives is to ensure residents feel safe and secure in their home. Having taken expert advice, the Budget confirms an additional £1bn to remove unsafe cladding from residential buildings above 18m, to ensure people feel safe in their homes.”

Spending tables suggested £1.215bn would be spent through the new Building Safety Fund in 2020/21 – appearing to indicate the additional £1bn plus £215m which has not yet been spent through other funds.

A spokesperson for Grenfell United, the group representing the bereaved and survivors of the 2017 fire, said: “Today it seems like a big step has been taken. The government is finally waking up to the severity of the situation.

“We hope for the first time in many months, people’s anxiety might ease and residents can see an end in sight for the crisis. It’s thanks to residents up and down the country, in social and private housing, who raised their voices. We stood together and made sure we will not be ignored.

“This is just the start. The fund is for buildings over 18m only, not yet for buildings under that. Hard work is needed to make sure buildings are prioritised, the funds get out quickly and work starts immediately. Every building needs a timeline and residents must be listened to and supported throughout the process.”

A spokesperson for the UK Cladding Action Group added: “We welcome and thank the chancellor for factoring the cladding scandal into his Budget. [The scandal has been] a nightmare endured by over half a million British people for too long.

“This crisis was avoidable and has caused an insurmountable amount of stress and anguish for many people. The government always said the original ACM fund was created to quicken the pace of remediation works – but to date, only a handful of eligible buildings have been fully approved for funding... We can only hope the mistakes are not now replicated.”

The Manchester Cladiators group called the announcement “a hugely positive step” but added: “Today is a good day but we will continue to pressure government until every single property is safe.”