Shabana Mahmood Portrait Shabana Mahmood (Birmingham, Ladywood) (Lab) [V]
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Four years have passed since the Grenfell tragedy, and once again the House is debating whether or not to protect leaseholders from the costs of remedying fire safety defects caused by a failure of regulation and negligence, as well as by deceptive practices in the building industry. Meanwhile, the Government continue to dither and delay, and order their MPs to vote against amendments designed to protect leaseholders. Make no mistake, the funds that the Government have made available thus far have taken too much time to come on stream. The money will not ultimately be enough to meet the scale of the crisis and, crucially, interim costs are not covered.

On top of all those costs, today we have heard about the cost of insurance. I have lost count of the times that I have pleaded with the Government to do something about insurance costs. In my constituency there have been insurance increases of 1,000% in affected buildings. Those are shocking figures, and this shocking situation is falling on deaf ears as far as the Government are concerned. Long before any cladding is removed from these buildings, the people living in them will have been ruined by the costs of insurance and interim measures such as waking watches to keep their buildings open. There is simply nothing left to remedy the internal fire safety defects as well. Leaseholders need the protection that the Lords amendment would offer.

We should never forget that at any point, a further tragedy could—God forbid—occur. That is a terror that leaseholders in Brindley House in my constituency have had to face, because on 31 January this year there was a fire in a flat in their building. I have seen the burned-out husk of that flat for myself. The fire service said that the residents were only two minutes away from the fire engulfing the whole of their building. Two more minutes and the windows in that flat would have shattered, and the cladding wrapped around that building would have caught fire. When I heard that, my blood ran cold. Can the Minister imagine what it must be like for the people who live in Brindley House? That is the risk, that is the fear, and that is the scale of the financial ruination that people in my constituency and all over the country are trying to cope with.

One of my constituents recently said to me that he now thinks it will be less stressful to declare himself bankrupt and become homeless than to try to find a way to carry on as a leaseholder. At the very least, the Government could and should support the Lords amendment, or indicate a clear way through the crisis, so that we send a clear signal to all leaseholders that we will stand with them.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con) [V]
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I start from the principle that successive Secretaries of State and Ministers have said from the Dispatch Box that the leaseholders are the innocent parties in this scandal and that they should not have to pay a penny piece towards the costs of remediation. I applaud the Government for coming forward with £5.1 billion of public money to support the remediation of unsafe cladding, but our problem is that it is not enough. The estimate now is that £15 billion will be required and that the extra £10 billion will have to come from leaseholders as the last resort, because building owners will naturally pass that on to leaseholders wherever they possibly can. They are the ones in situ; they are the ones facing these huge bills.

The Government say that further proposals will come forward on the forced loan scheme. We were promised in the earlier statement in February that the loan scheme would be announced at the Budget. Now, I did make the assumption that that was the Budget in 2021, not the Budget in 2022 or 2023. The reality is that the evidence given to the Housing, Communities and Local Government Committee and other bodies suggests that the forced loan scheme is nowhere near being available. We as Members of Parliament are not even able to scrutinise the proposal, so those who are living in blocks of flats of six floors or less do not even know how that scheme will work. My estimate is that many people will end up with a bill that will last for 100 years, therefore factoring in, almost inevitably, a dramatic reduction in the value of their properties. Equally, we know that the fire safety remediation required in addition to the remediation of unsafe cladding almost dwarfs the costs of remediating the cladding. All those costs will once again be passed on to the innocent leaseholders.

I understand that my right hon. Friend on the Front Bench has to defend this position and clearly wants to get the Fire Safety Bill on the statute book. Let us be clear. I do not think any MP wishes to prevent the progress of the Fire Safety Bill. What we do need, however, is surety and assuredness, because the draft Building Safety Bill will almost certainly take 18 months to two years to bring to fruition. The leaseholders do not have that time to wait. My right hon. Friend the Minister has made it clear on a number of occasions that he finds the amendments defective. Well, there is still time. I agree with my right hon. Friend the Member for North Somerset (Dr Fox) that there is a solution. If the Government reject that solution, let them come forward with their own solution in the House of Lords. Let us agree that the leaseholders do not have to pay a penny and the Fire Safety Bill can go on the statute book, as we would all like to see.

Barry Gardiner Portrait Barry Gardiner (Brent North) (Lab) [V]
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The Minister should be very careful. The speeches in this debate today are an example of Parliament at its best and Government at their worst. The Minister has heard Members from across the House, and from his own party in particular, criticise what the Government are doing. He would be a very wise Minister to listen to Parliament. If he refuses to listen, I think he should think about his future.

In March this year, leaseholders in Wembley Central apartments in my constituency were told that in response to the publication by the Government of the Building (Amendment) Regulations 2018, a waking watch system would be implemented as soon as possible. The cost of the waking watch patrols would be recovered from leaseholders in the sum of £91,380 a month. The cost of the remedial works to the fire alarm system across Central Apartments, Ramsey House and Metro Apartments is estimated to be in the order of £250,000 to £300,000. The owners said that they were unable to say the total cost of all four recommendations and that they therefore could not advise the liability of each leaseholder.

I find it unacceptable that the Government are imposing billions of pounds of costs on leaseholders retrospectively to remedy misconduct by others, such as the developer, the builder or those producing the Government’s own advisory documents and in particular building regulations control. The fire survey for these particular buildings said:

“There is evidence that the junctions between compartment floors were inadequately fire stopped…as there were gaps at mineral wool fire barriers at steel framing. There were no visible fire barriers at vents or around windows/door frames and it could not be confirmed that the window/door frames themselves formed cavity barriers.”

That indicates that at the time of construction the building regulations then in force were not followed. That means that these people were sold a building that was not fit for habitation, yet the Government are not pursuing the people responsible; they are making sure that it is the innocent parties who will pay. Their lives are being ruined, as Members in all parts of this House have said. It is vital that the Government address this and accept the Lords amendment. In particular, they need to focus on addressing the very real issues in building control regulations that allowed this scandal to happen in the first place.