U.K. builders slump on government call for unsafe cladding fund

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UK builders said on Monday on behalf of the government that it is seeking £4bn from the industry to tackle unsafe cladding.

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Builders, including persimmon psn
-4.51%,
Berkeley Group BKG,
-2.94%
and Taylor Wimpy TW,
-2.57%
Each leveling up fell as Secretary of State for Housing and Communities Michael Gove began the march to get builders to agree a “fully funded action plan” including the removal of unsafe cladding on buildings 11 by 18 meters given time limit.

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Cladding concerns have weighed on the area since a fire at the Grenfell Towers in London in 2017 killed 72 people.

Analysts at UBS say the worst-case scenario would be a tax hike that would reduce the sector’s earnings per share by 11%, but a likely outcome is “some sort of burden sharing.”

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ftse 100 ukex,
-0.12%
The UK index fell 0.1%, outperforming European rivals, which have a higher technology load.

As Barclays BARC, hopes of rising bond yields lifted the UK financial sector,
+2.02%
and HSBC Holdings HSBA,
+1.91%
Rose 2% each.

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