Staffordshire councillors speak out against new tax on housebuilders

Cannock Chase councillors have spoken out against a new tax on housebuilders – and fear the cost could be passed onto buyers.

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The Building Safety Levy, a financial charge on new residential developments, came into effect in England at the beginning of October.

Councils have been made responsible for collecting the levy in their local areas. And money has been given by the Government towards funding the collection of the levy.

Cannock Chase District Council has been given £51,300 while Stafford Borough Council received £69,000 from the “New Burdens” pot. On Thursday (November 12), the borough council’s cabinet also recommended that an additional £63,000 be added to its 2026/27 capital programme towards new staff costs, software and purchase of other equipment.

A report to the cabinet said: “The Building Safety Levy (BSL) is a financial charge on new residential developments in England, introduced in the Building Safety Act 2022. It aims to raise £3.4 billion to help pay for fixing building safety defects in residential buildings.

“The Government has designated local authorities as the collecting authority for the levy. The process for determining levy liability and payment is linked to the building control process.

“The administration for the BSL will sit within the council’s building control team. Additional capacity in the form of staff and new computer software is required in order to be able to fulfil this new duty.”

Cannock Chase District Council’s cabinet has recommended the authority add a further £60,500 to its 2026/27 capital programme alongside its Government funding. But members of the Reform UK administration raised concerns about the impact of the new charge.

Speaking at the latest district council cabinet meeting, deputy leader Richard Craddock said: “I see it as a tax on homebuyers. To add an additional £2,500 – £3,000 to the cost of a home seems simply bizarre when we see so many people struggling to buy – that straight away adds to the cost for buyers.”

Councillor Mandy Bell, resources and corporate services portfolio leader, said: “To me it’s an extra tax imposed by central Government which impacts the cost of new build properties. That cost will be passed onto homebuyers.

“We are at a time when central Government should be encouraging growth, not hampering it with extra taxes that aren’t applied to any other sector. The industry is struggling at the moment – this is going to be another tax that will make new build properties less competitive than second-hand houses.

“I do not agree with this. It is imposed by central Government, but we have to put it through because we have to protect the council.

“Unfortunately our hands are tied.”