The ‘cladding tax’ could end up being a disastrous mistake

Since the first buildings with dangerous cladding were discovered in the aftermath of the Grenfell Tower fire, one question has hung continuously over all efforts to make them safe: who is going to pay?

Now, after three and a half years of stilted progress, the government appears to be on the verge of answering that question. The answer it is reaching for could prove to be the most controversial and politically damaging mistake since the building safety saga began.

The government’s current proposal began when Michael Wade, an insurance guru, was drafted by the Cabinet Office to help find a solution to the cladding problem. The idea he is reported to have thought up is as follows: loans will be provided to the companies which own the freeholds of the blocks requiring remediation. These loans will be backed by government to hold down the interest rate and will be spread over a period of at least 30 years.