Experts and campaigners have warned the government’s new £1bn fund to remove dangerous cladding “does not go far enough” and that up to £10bn may be required.

In his first Budget speech as chancellor yesterday, Rishi Sunak announced that funding would be extended to cover the removal of all types of unsafe cladding rather than just that made from Aluminium Composite Material.

But he said the funding would be restricted to high-rise buildings over 18 metres and did not say whether money would be made available to rectify other fire safety issues.

Campaigners welcomed the news, but urged the chancellor to go further in order to ensure all residents are safe.

Rebecca Fairclough from the Manchester Cladiators campaign group told BBC Radio 5 Live: “We are grateful but it’s not enough so we will continue with our campaign.

“Unfortunately it still doesn’t solve the issue for a lot of people. There are lots of areas that are not covered by it.

“It misses out all the other fire safety issues that buildings have and it also doesn’t include any dangerous cladding on buildings under 18m of which there are a lot across the country.”

Arnold & Baldwin surveyors managing director Joe Arnold is also encouraged by the new fund, but agrees it needs to go further.

But he says: “One of the unresolved issues was amongst homeowners living in high-rise blocks across the country with similar cladding to that used on Grenfell and there has been a huge amount of confusion and frustration about how this might impact the value of their property and numerous reports of zero valuations given on apartments in high-rise buildings.”

A process has been agreed by the industry to allow surveyors, lenders, building owners and fire safety experts to establish a value for high-rise properties with combustible materials.

“This will help identify where buildings are safe and, for those that are not, the Building Safety Fund will provide an important pot of money to improve the situation for many people living in high rise properties,” he says.

But he adds: “It may not be a big enough pot, however, and some commentators have speculated that to carry out works on all affected properties is likely to cost much closer to £10bn than £1bn.

“I would also like to see the offer extended to all buildings with combustible cladding, whether or not they are taller than 18m. 

“There are many thousands of people who live in low-rise properties with cladding whose property values have been similarly negatively impacted. 

“It will take time to understand exactly how the fund will work and how long it will take to complete the work – but it is certainly a step in the right direction.”