The tax, which will have a rate of 4%, will hit developers who have an annual profit of £25m or more.

The Chancellor said: “We are confirming £5bn in funding to remove cladding from the most high-risk buildings.

“This will be funded by the residential property developers tax which I can confirm will be levied on developers with profits over £25m at a rate of 4%.”

Recent analysis of government figures found that cladding will not be removed from all at-risk buildings until seven and a half years after the Grenfell Tower tragedy if the work continues at its present rate.

The figures Department for Levelling Up, Housing and Communities shows that it will take another three and a half years to remove the cladding from high-rise buildings.