During Treasury questions in the House of Commons, James Wild MP criticised the government for proposals that could dramatically increase the cost of building new homes by up to £28,000.
It is already predicted the government will fall around half a million homes short of its 1.5 million target for new homes in this Parliament and this would make it harder for families and young people to get on the housing ladder.
James warned that the proposed 3,000% increase in the “builders tax” - the portion of Landfill Tax reforms affecting the disposal of construction materials - could dramatically increase construction costs. The reforms which the government has proposed taking effect from Autumn 2026 would remove exemptions and reliefs, pushing the cost of disposing of inert materials, such as soil and chalk, from £4.05 per tonne to as much as £126.15 per tonne. In some cases, this Mineral Prodcuts Association estimates 3,000 per cent increase could add up to £28,000 per home, putting further pressure on housebuilding and those trying to buy a home.
Industry leaders, including the Home Builders Federation, have described the changes as “costly and burdensome,” warning that they could stall projects, reduce housing supply, and make homes less accessible for families.
James Wild MP said:
“The Government want to drive growth through house building but even before the departure of the Deputy Prime Minister, they were predicted to miss the 1.5 million new homes target by half a million.
How does the Chancellor and her team of tax raisers think a 3,000% hike in the builders tax, adding £28,000 to the cost of building a new home, will help to deliver the new homes that young people need? Rather than consult on it, why will she not rule out this damaging tax rise?”
In response, the Chancellor said:
“I think Opposition Members will recognise that building companies have strongly welcomed the reforms we have made to get the country building, and they are very much against the Conservatives, the Liberal Democrats and others in the House of Lords opposing the Planning and Infrastructure Bill, which could have been given Royal Assent by now without that opposition. Instead of scaremongering about something that is being consulted on, the Shadow Minister might want to get on and back the positive things that the Government are doing.”
