The End our Cladding Scandal campaign group has hit out at the chancellor’s Autumn Budget, saying it “marks the fourth time that ministers have recycled their announcement”.

Rishi Sunak said there would be a £5bn fund to “remove dangerous cladding”.

The fund is partly made up of the Residential Property Developer Tax for developers with profits over £25m, at a rate of 4%.

It was previously announced that housing associations would be exempt from the tax. However, if they are deemed to be making additional profits, the consultation document says: “The government has decided that this exemption should be complemented by an exit charge, which will apply where a corporate body benefitting from the exemption ceases to qualify for it”.

Going further, it adds: “Such an exemption is not justified on the grounds that the development of affordable housing with a view to making a profit from that activity, is clearly the development of residential property.”

Taking to social media to voice their disappointment, the group said: “Boris Johnson’s government seems to be operating in a time warp. The Chancellor has also now confirmed what we always knew — that the new developer tax, which is expected to raise £2bn, will repay current funding, rather than be additional help for innocent leaseholders.

“This £2bn developer tax spread over ten years may sound like a lot until you realise that the estimates to fix this crisis could be between £15bn-£50bn.

“This levy is a slap on the wrist for developers and they know it. Developers have received billions in government subsidies — £20.1bn alone via the Help to Buy loan scheme. Since the Grenfell Tower tragedy, just seven developers have recorded profits of more than £15bn and ten executives of these firms have been personally rewarded an astonishing £708m.

“This government knows full well that its faulty regulations, along with developers shoddy building practices and manufacturers malfeasance are the causes of the crisis. Yet it appears totally content for hard working, tax paying leaseholders to shoulder most of the burden.

“We have already witnessed the start of bankruptcy filings and repossessions, not to mention warnings from the Bank of England and the mental health crisis brought about by the stress of financial ruin and living in flammable flats. It’s time for government to end a scandal that is ruining so many lives.”