Cladding tax threatens Angela Rayner's housing development plan

Angela Rayner's plan to build 1.5 million new homes faces challenges due to a new £3.4 billion cladding tax set to start in autumn 2025. This tax will increase costs for developers, potentially making many housing projects unviable. Developers warn that the tax could add £3,000 to £5,000 per property, impacting smaller businesses the most. The Home Builders Federation has expressed concerns that this levy, combined with existing financial pressures, may reduce the number of new homes built. Despite government assurances that the tax won't hinder housing targets, developers are skeptical. They highlight that rising costs and planning delays are already straining the sector, with some companies, like Sigma Homes, halting operations due to financial pressures.