Michael Gove expected to say he will push developers to pay £4bn for replacement in smaller buildings

Housing campaigners and MPs have cautiously welcomed plans to pressure developers to cover the cost of removing dangerous cladding from buildings taller than 11 metres, but warned they do not go far enough.

In an apparent climbdown, the housing secretary Michael Gove is expected to announce that leaseholders in buildings between 11 and 18 metres (36-60ft) tall will no longer have to take out loans to cover costs. Instead, Gove will try to make developers pay £4bn, according to a leaked Treasury letter reported by BBC Newsnight.

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