Building Safety

Margaret Hodge Excerpts

Wednesday 10th February 2021 Commons Chamber

[Robert Jenrick]

The levy and the tax that I have announced today and that my right hon Friend the Chancellor and I will be setting out more details on ensure that the industry pays its fair share, in addition to it stepping up and paying for the remediation of buildings for which it has responsibility. It has to be said that there is no simple solution to this. Many of the builders and developers who constructed these buildings are long gone—they have gone into administration or they are shell companies offshore. This is not a simple challenge to fix, as some have suggested, but I hope the measures that we have taken today will go a long way.

[Dame Margaret Hodge (Barking) (Lab) [V]]

A number of Members have said that getting any money out of Government has proved painfully slow, so leaseholders today are facing extra costs for insurance while their buildings remain unsafe. Building insurance at the Ropeworks in Barking rocketed from £70,000 to £650,000 —a 900% hike in just two years. The Association of British Insurers has told me that Ministers have refused to engage to find an urgent, practical way forward now. Will the Minister assure us today that the Government will immediately engage with all insurers, take on some of that short-term risk, so that leaseholders can buy affordable cover until their buildings are made safe?

[Robert Jenrick]

I pay tribute to the right hon. Lady for the work that she has done. She and I have worked together since the terrible fire that her constituents suffered in Barking. She is right to raise the issue of insurance, as other Members of the House have done already. There is a challenge here, because, as with the lenders, the insurers are faced with assessing a new and heightened level of risk. None the less the Association of British Insurers now needs to step up and take a proportionate risk-based approach. As I have said repeatedly, the risk to life in buildings is, mercifully, very low, with the tragic exception of the events of 2017. Insurers should be pricing that risk correctly and not passing on those costs or even profiteering on the backs of the leaseholders. Both myself and my hon. Friend Lord Greenhalgh who leads on building safety have engaged repeatedly with insurers and we will do so again.