NISTA says worries have increased because of capacity issues and rising construction costs
A Whitehall agency has lowered its delivery confidence assessment rating for the government’s cladding remediation programme to red because of worries over capacity and rising construction costs.
In its latest analysis of major government projects, the National Infrastructure and Service Transformation Authority (NISTA) took the measure despite saying delivery is set to accelerate.
A red rating means a project needs deeper, more targeted support to help it get back on track.
NISTA said: “This [decision] reflects risks to pace and affordability which are constraining delivery against planned timelines, including higher-than-anticipated social housing volumes, Building Safety Regulator constraints impacting progression of works, the need to accelerate delivery through developers and anticipated construction cost inflation.”
NISTA said delivery against the government’s remediation acceleration plan and within the 2025 full business case assumptions “remains challenging”.
As of 31 March this year, 4,322 buildings over 11m have been identified with unsafe cladding, representing an estimated 50%–76% of all buildings that will require remediation as part the programme.
For the 4,322 buildings identified with unsafe cladding, remediation has started on 2,399, including 1,531 that have been completed and 868 now on site. A further 1,923 buildings are in the programme but have not yet started on site.
It said: “Targeted action is underway, including increasing Gateway 2 throughput, strengthening delivery planning with social sector partners, and working with developers to improve pace. Developer cost recovery activity is progressing, alongside preparations for the Building Safety Levy launch (October 2026).”
The report also said HS2 Phase 1 remains red as it is being reset while government’s plans to set up a Warm Homes Agency is also given the same rating.
NISTA is a joint unit of the Treasury and Cabinet Office. It was formed as a merger of the National Infrastructure Commission and the Infrastructure and Projects Authority.
A spokesperson for the Ministry of Housing, Communities and Local Government, said: “We’re going further to speed up cladding removal to bring the building safety crisis misery to an end.
“To do this we’re introducing a new legal duty to remediate that will force those responsible to fix unsafe buildings or face criminal prosecution. This builds on £1 billion we’ve already committed to accelerate remediation of social housing.”
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