Building Safety

Lisa Nandy Excerpts

Monday 10th January 2022 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

May I thank you, Mr Speaker, for your kind words about Jack Dromey, who should have been with us here today? There is a space over there that I know Jack would have occupied. Back in the 1970s, horrified by the spectacle of a skyscraper in London that lay empty while people slept rough underneath it, Jack was one of those who occupied Centre Point tower in protest. He was never afraid to speak truth to power, and I hope that today marks the start of all of us across the House invoking his spirit.

Four and a half years after the appalling tragedy at Grenfell, and with a road paved with broken promises and false dawns, hundreds of thousands are still trapped in unsafe homes, millions are caught in the wider crisis, and the families of 72 people who lost their lives are waiting for justice. It is a relief that we finally have a consensus that the developers and manufacturers who profited from this appalling scandal should bear greater costs, not the victims, and that blameless leaseholders must not pay. After a year of hell of the prospect hanging over leaseholders, we welcome the decision to remove the threat of forced loans, but can the Secretary of State tell us what makes him think that he can force developers, who have refused to do the right thing for four years, to pay up? We have been told there is a March deadline and a roundtable, but there is not a plan. If he has one, can we hear it? He will find an open door on the Opposition side of the House, if he has a credible proposal to bring.

Today the Secretary of State warned developers that if negotiation fails,

“our backstop…what we can do…is increase taxation on those responsible”,

but that is not quite right, is it? I have in front of me the letter from the Chief Secretary to the Treasury. May I remind the Secretary of State what it says? He was told that

“you may use a high-level ‘threat’ of tax or legal solutions in discussions with developers”

but

“whether or not to impose or raise taxes remains a decision for me”

—the Chief Secretary—

“and is not a given at this point.”

If I have seen the letter, I am fairly sure that the developers have too. Furthermore, it appears that what the Secretary of State has told the public—that tax rises are the backstop—is not what he has told the Treasury. The letter says that

“you have confirmed separately that DLUHC budgets are a backstop for funding these proposals in full…should sufficient funds not be raised from industry.”

That is not what the Secretary of State told the House a moment ago, so can he clear this up? Has the Chancellor agreed to back a new tax measure if negotiations fail, or is the Secretary of State prepared to see his already allocated budgets—levelling-up funding, or moneys for social or affordable housing—raided? Or is his plan to go back to the Treasury, renegotiate and legislate, if he fails in March? If that is the case, it will take months, and there is nothing to stop freeholders passing on the costs to leaseholders in the meantime. Does he even have an assessment of how many leaseholders will be hit with whacking great bills if he delays?

If the Secretary of State is serious about going after the developers—I hope that he is—why is he not putting these powers into the Building Safety Bill now? The only trick that he has up his sleeve, as he just confirmed to the House, is to ban them from Help to Buy, and we know that the impact of that, though welcome, will be marginal. Can he see the problem? He will also know that there is a gaping hole in what he has proposed. A significant number of buildings have both cladding and non-cladding defects, and leaseholders in them face ruinous costs to fix things such as missing fire breaks and defective compartmentation. One cannot make a building half safe. Given that the Secretary of State recognises the injustice of all leaseholders caught up in the building safety crisis, why is he abandoning those who have been hit with bills for non-cladding defects, and why will he not amend his Bill so that all leaseholders are protected from historical defects in law?

The truth is that the pace of remediation has been painfully slow. The Secretary of State is now on track to miss the deadline to fix all Grenfell-style cladding by over half a decade, and there are huge delays when it comes to building safety fund applications, so will he get a grip on what is going on in his own Department and ensure that the progress of remediation is accelerated markedly? As he knows, this has been a living nightmare for affected leaseholders, and we owe it to them to bring it swiftly to an end.

What the Secretary of State has given us today is a welcome shift in tone and some new measures that the Opposition very much hope will succeed, but the harder I look at this, the less it stands up. We were promised justice and we were promised change, to finally do right by the victims of this scandal, and that takes more than more promises. It takes a plan.

[Michael Gove]

I am grateful to the shadow Secretary of State for her questions. First, I entirely agree with the generous and fitting words that she had for Jack Dromey. As I mentioned briefly in my statement, he was a relentless campaigner for social justice throughout his career. Indeed, the role he played in highlighting the plight of the homeless, and the need to act in order to ensure that they had a safe and decent place to live, is one of the many achievements that we will all recall as we think of his contribution. I also welcome the consensual approach that the shadow Secretary of State and her Front-Bench colleagues are taking in seeking to ensure that we place responsibility where it truly lies, and she had a number of appropriate questions to follow up in order to ensure that we deliver effectively.

The shadow Secretary of State made the point that the allocations from the building safety fund so far have been slow and are behindhand, and that is true. I think it is always better to be honest about those areas where the Government have not performed as well as they should, and one of the first things I did as Secretary of State was to ask for all necessary steps to be taken to ensure that that money was spent effectively. Of course, one of the problems we have had is that it is a demand-led system, so we have relied on many of those who have been responsible as the individual owners of buildings to come forward. However, what we are also hoping to do is ensure that, working with the National Fire Chiefs Council, we have the most extensive analysis of all the buildings that need our support and that we accelerate work on the BSF. So her concerns are not misplaced, and it is certainly my intention to ensure that we accelerate and make comprehensive that work.

The shadow Secretary of State also made the point that non-cladding costs do need to be met, and I agree. She specifically requested that we provide amendments to the Building Safety Bill to ensure that there is statutory protection for leaseholders. That is our intention—we intend to bring forward those amendments—and I look forward to working with her and colleagues across the House to provide the most robust legal protection.

The shadow Secretary of State doubted—again, I can understand the basis of her scepticism—whether developers and others in industry, given their past behaviour, would necessarily come sweetly to the table, and that is why it is so important that we have a range of tools available. I think it is important to recognise that there are some developers and some in the industry who have done the right thing, and it is also important to recognise that a spokesman for the Home Builders Federation, Stewart Baseley, today struck a very a constructive and open tone.

However, we do need to have additional backstops, and it is clear that taxes can, if necessary, play a part. I do not want to move there, but we do have the absolute assurance that we can use the prospect of taxation to bring people to the table. All taxation decisions are made by the Chancellor, and no Chancellor or Chief Secretary would ever say anything other than that, but the fact that the Chief Secretary and the Chancellor have authorised me to use the prospect of taxation, and the fact that we already have taxation through the residential property developer tax, shows that we are prepared to take every step necessary.

The final point that was implicit—perhaps explicit—in everything the shadow Secretary of State said is that we will be judged on our actions, and I think that is entirely fair. I recognise, given the scale of the frustration that so many have felt in the past, that ultimately there can only really be satisfaction when we bring this matter to a conclusion. I believe that today marks a significant step forward, but there is more work to do, and I hope that we can conclude that work on a cross-party basis in order to bring justice to those who deserve it.