Fire Safety Bill

Nigel Evans Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Wednesday 24th February 2021 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab) [V]]

First, may I send my best wishes to the right hon. Member for Old Bexley and Sidcup (James Brokenshire)? When he was Secretary of State, he and I discussed our respective illnesses, and I really feel for him and his family at this very difficult time.

The Housing, Communities and Local Government Committee has discussed the issue of cladding remediation and fire safety works on many occasions. In June, we made it clear that

“residents are in no way to blame”

for defects from cladding

“and it is our view that they should bear none of the cost of remediation.”

We repeated those sentiments in our prelegislative scrutiny of the Building Safety Bill. Again, we said:

“The Government must recommit to the principle that leaseholders should not pay anything towards the cost of remediating historical building safety defects…for which they were not responsible.”

That is very clear.

The question is who should pay: the initial developer—the Government could help to co-ordinate action against them—the taxpayer, of course, or the industry as a whole? Unfortunately, the amendments tabled by the hon. Member for Stevenage (Stephen McPartland)—I very much agreed with the sentiments of his comments—and by the Labour Front Benchers seek to place responsibility on the freeholder.

For reasons that the Minister gave, those amendments cut across the contractual relationship between freeholder and leaseholder. The hon. Member for Thirsk and Malton (Kevin Hollinrake), who raised this issue a number of times in the Select Committee when he was a member, showed that freeholders are often quite small companies that, where they were not responsible for the initial development, simply collect ground rent. If faced with the cost of remediation, they would simply walk away. Those amendments will not get the work done. That is the fundamental issue. We want to see it done without leaseholders having to pay for it.

Turning to who should pay, certainly, the Government have put on the table £3.5 billion in addition to the £1.6 billion, but that does not include anything other than cladding remediation. All the other works, which for many leaseholders are as substantial in cost as cladding remediation, are not covered, and of course that funding does not cover buildings below 18 metres.

The Government have come up with a loan scheme for buildings below 18 metres, but that places the loan charge on the freeholder. Surely, we are back to the same problems: if we cannot interfere with the contractual relationship between the freeholder and the leaseholder—according to the Minister, with respect to the amendments before us from the Opposition and the hon. Member for Stevenage, we cannot—then surely that is a problem for the Government’s loan scheme too, and if freeholders are going to walk away from a direct charge on properties, as the hon. Member for Thirsk and Malton said, they will walk away from a loan too. That is a real problem that the Government have to address.

I welcome that the Government are going to introduce a levy and a financial contribution from the industry, but we appear to be in a position where they cannot tell us whether the money raised from the levy will be in addition to the £3.5 billion or whether it will be taken from the £3.5 billion—in other words, that the Treasury will get some of that money back. That, to my view, would be wrong. The Minister is going to come to the Select Committee on 8 March; hopefully, we will be a bit wiser after that visit.

Finally, we have talked a lot about leaseholders, but what about social housing tenants? The National Housing Federation says that there is £10 billion of remedial work to be done in the social housing sector, and more for council housing properties, yet the only automatic right that social housing landlords have to any funding is for help with the removal of ACM cladding; everything else they are likely to have to pay for. Tenants are going to have to pay through rent increases, cuts to future maintenance or cuts to the house building programme, none of which is acceptable. So we have a perverse situation where the social housing landlord, as a freeholder, could be ensuring that tenants have to pay for the remediation of properties next door that have been subject to the right to buy. That cannot be right.

All these matters need resolving. We hope that the Minister does so on his visit to the Select Committee.

[Mr Deputy Speaker (Mr Nigel Evans)]

We now move to a three-minute limit. I call Royston Smith.

[Royston Smith]

I draw Members’ attention to my entry in the Register of Members’ Financial Interests. I have no axe to grind with the Government. They are my friends and colleagues. I like them and I get on with them, but I am not going to blindly follow them when I can see that the treatment of leaseholders is wrong.

First, in tabling our amendment, we have never said that we would ask for taxpayers’ money. We made that fundamentally clear right at the beginning, and it is worth repeating that. I know that many of my colleagues would have supported our amendment, but they were told that it would be an open cheque book and therefore they chose not to. Secondly, our amendment will not wreck the Bill. It will make it fair for the innocent lease- holders caught up in this crisis.

There are three parts to this, in my opinion. There is the moral issue. Who, in good conscience, could leave these people to pay huge insurance premiums, sometimes increased by over 1,000%, huge waking watch charges and crippling costs of remediation if we could do something to help? Who would do that?

Then there is the economic issue. When someone owns just 10% of their home, but they are responsible for 100% of the remediation cost, what do we think people are going to do? They will be saddled with tens of thousands of pounds-worth of debt while their home is valued at nothing. This part of the housing market is heading for collapse and thousands of leaseholders are heading for bankruptcy. The Government could and should prevent this from happening.

Finally, there is a political dimension. Successive Governments have put home ownership at the centre of Government policy. They have encouraged people to get on the property ladder. We have incentivised them through schemes such as Help to Buy and shared ownership. Imagine the howls of derision when the first Government Minister stands up and claims that we are the party of home ownership.

The recent Government announcement is very welcome, and I know that many people are grateful, but what sort of solution says, “We concede that it is not your fault, but we are only going to help half of you?” For those buildings over 18 metres, cladding will be removed for free, but not in buildings below that height. Worse than that, those people living in buildings below 18 metres will be saddled with unaffordable debt to pay for cladding remediation. Even worse, they will know that their taxes will be paying for their neighbours’ remediation.

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[Bob Blackman (Harrow East) (Con) [V]]

It is a pleasure to follow the hon. Member for Hammersmith (Andy Slaughter). This is a horrendously complicated issue involving cladding—ACM, high-pressure laminate and other forms of inflammable cladding—fire safety measures and the height of buildings. I warmly welcome the fact that the Government have come up with the money to remedy the most unsafe buildings—tall buildings—and the cladding that was put on them, which fails to provide safe accommodation to residents.

The reality is that the £5.1 billion will remediate only the unsafe cladding and will not do the comprehensive work. The issue then becomes one of the fire safety work that has to be carried out as well. There is no funding to provide for that, so it has to be paid for by someone.

I have a series of suggested tests that could apply. The first is that, emerging from the Grenfell inquiry, it is quite clear that the ACM cladding was illegal, so those responsible for developing the cladding and putting it on the building must pay for the remediation in all other buildings where that is the case. Similarly, for other forms of unsafe cladding, if those people fail to accord with the building regulations that exist at the time, they should pay the cost of removing and correcting it.

Leaseholders could not reasonably have been expected to foresee the fire safety issues when they bought the leases on their flats, so the fundamental issue is that they should not have to pay the cost of remediation, either of cladding or of fire safety defects. My hon. Friend the Minister said that he finds the amendments defective. My challenge to him, when he responds to this debate, is to make it clear from the Dispatch Box that the Government will bring forward proposals in the Lords to amend the Bill to make sure leaseholders do not pay.

The defence seems to be that the Building Safety Bill will eventually come through and be implemented. The problem is that we have sat through the pre-legislative scrutiny of that Bill and recommended at least 40 changes to it. It will take probably 18 months for it to reach the statute book, and then we have the secondary legislation. Leaseholders do not have the time: this work needs to be carried out now. The industry estimates that it will take some four years to implement all the safety works required. It must be made clear that the leaseholders are not the ones to pay.

Currently, leaseholders cannot insure or sell their properties and no one wants to buy them. We are in danger of freezing the housing market because of this problem. I urge the Minister, when he responds, to—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. We will have to leave it there.

[John McDonnell (Hayes and Harlington) (Lab) [V]]

I, too, send my best wishes to the right hon. Member for Old Bexley and Sidcup (James Brokenshire) and wish him a speedy recovery.

I have been listening to the debate and the various interventions. A question asked consistently in interventions from Conservative Members has been whether it is not best to put things right rather than act quickly. I remind those Members, as others have, that it is now four years on from Grenfell. Four years is a timescale in which we should have been able to address this issue and given people security and some form of confidence.

Confidence has been shattered by the failure to include in the legislation the recommendations from the first phase of the Grenfell inquiry. I share the view of the Fire Brigades Union that the Government seem to be doing the bare minimum to fend off bad headlines. I have not the eloquence to speak on behalf of my constituents and portray just how strongly they feel about this matter. They are really very angry—and, I have to say, distressed. They feel not only at risk but that their lives have been put on hold by their inability to sell their properties and move from them.

We have heard today about the £5 billion that the Government have allocated; my constituents, like those of other Members, are asking what happens if the money runs out—the costs so far have been estimated to be nearer £15 billion. In addition to that, just as the hon. Member for Harrow East (Bob Blackman) said, the money will not cover many of the defects that have now been found and the additional measures that have been demanded and required. My constituents are now being hit with potential bills from the developers—including the worst, Ballymore—for things such as rectifying wooden balconies and other defects that were not of their making. The idea of waiting for the Building Safety Bill is like “Waiting for Godot”, what with the time it takes to get the right type of Bill and then get the legislation through and implemented.

My constituents in lower-rise blocks do not see why they are being discriminated against. My constituents were blameless. They were failed by developers, regulators, suppliers of materials, inspectors—all of them. Many of those developers made fortunes out of developments in my constituency; it is they who should pay the cost of their own failures. I urge urgency, which is why I will support all the amendments that would protect leaseholders from being burdened with the debt caused by others who have failed us all.

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[Stephen Doughty]

May I add my warm words to those of other Members in wishing the Minister for Security, the right hon. Member for Old Bexley and Sidcup (James Brokenshire), a full and swift recovery?

I think that many constituents, from constituencies across the country, will struggle to understand some of the arguments and excuses that the Government have put forward today. I support the amendments tabled by hon. Friends on the Opposition side, and also those tabled by the hon. Members for Stevenage (Stephen McPartland) and for Southampton, Itchen (Royston Smith), who made powerful speeches. To emphasise that, I have received an email during the course of the debate, from a leaseholder from a Conservative English constituency, in support of those amendments. He says, “I am a Conservative, and the Housing Department is a disaster in this regard.” That is the message that I am getting from people. Regardless of their political affiliation or where they live in the country, they want this resolved. They are living in anguish and uncertainty, and it is affecting their mental health. It is affecting key workers in our covid response. It is affecting people who are trying to support young families. It is just a completely untenable situation for them to find themselves in. I think they will find some of the excuses we have heard today very difficult to hear.

This is a national scandal that has been brewing for decades, and it needs urgent action to resolve it. It needs action across the United Kingdom, so it needs the UK Government to work constructively with the Welsh Government. They have worked constructively in preparing this Fire Safety Bill, so it was really disappointing the other day when the Secretary of State for Housing, Communities and Local Government brushed off any questions about Wales, saying, “I don’t know what’s going on there”—or something to that effect—at the end of the debate. He simply has not answered any of the questions, or responded to a very reasonable letter from our Housing Minister in Wales, Julie James.

I have submitted a series of parliamentary questions over the past few weeks to try to get some clarity on the gateway 2 builder levy, the proposed new tax, and on related matters, and I have received completely opaque answers. That is simply not good enough for leaseholders who want those answers and want to know what support is coming from the UK Government to ensure that their concerns are dealt with, not least because many of these pre-date devolution. I hope that the Minister will be able to look constructively on my request for those meetings, and will be able to arrange urgent briefings on these matters between officials in the Welsh Government and the UK Government.

I must go back to one of the biggest problems, which is the developers. I have called them out before and will do it again. Companies such as Redrow, Laing O’Rourke and Taylor Whimpey need to be held accountable for this. They have been raking in billions in profits while building shoddy buildings, in relation to fire safety and building safety, and it is simply unacceptable that leaseholders might then be expected to pick up part of the cost. I am very pleased that the Welsh Government have confirmed unequivocally that they should not have to do that, but that requires working together across the UK—across the Union that the Minister and I support—to ensure that we deliver for them.

Lastly, we urgently need clarity on the EWSI issue, because it is still affecting lots of people and it is not getting through to the ground, and on insurance, working with the Association of British Insurers and others.

[Mr Deputy Speaker (Mr Nigel Evans)]

The comms with Tom Randall are a bit unstable, and we want to be absolutely certain that they are perfect, so we will go to Meg Hillier next.

--- Later in debate ---

[Mr Deputy Speaker]

The video link appears to be working. I call Tom Randall.

[Tom Randall (Gedling) (Con) [V]]

The Fire Safety Bill is a short Bill of seven clauses that amends the Regulatory Reform (Fire Safety) Order 2005. That order consolidated different pieces of fire safety legislation, and this Bill clarifies that the order applies to a building’s structure, external walls and any common parts. I am sympathetic to the aims of Lords amendment 4, but I am concerned that the fire safety order, or any Bill concerned with amendments to it, is not the appropriate legislative device to resolve the problem of remediation costs. The fire safety order is designed to place duties on the person who has some level of control in a premises to ensure that they identify the fire safety risks for the building for which they are responsible and, if necessary, put the relevant precautions in place.

I understand the Government are looking to the building safety Bill to address the issues raised in this amendment, and I agree that that would be a more relevant place to consider them. I also understand that the clauses, as drafted, would stop all remediation costs being passed on to leaseholders, including those that one might expect to be covered by service and maintenance charges, such as safety work required as a result of routine wear and tear. There is a further concern that the amendment, as drafted, could delay the implementation of the Bill itself and crucial measures to improve the fire safety regulatory system, including delaying recommendations from the first phase of the Grenfell inquiry.

I am, however, pleased that the Government are paying for the removal of unsafe cladding for leaseholders in all residential buildings of over 18 metres in England. As Dame Judith Hackitt, the independent adviser to the Government on building safety, has said:

“Statistics show…that buildings above 18 metres have a four times greater risk of fatality in the event of a serious fire than lower rise buildings”,

and these buildings are rightly being prioritised for funding. For lower-rise buildings of between four to six storeys, there is a lower risk to safety, and leaseholders will gain the new protection of having cladding removed with a generous scheme to pay for it through a long-term, low-interest, Government-backed finance arrangement, where leaseholders never pay more than £50 a month for cladding removal.

I appreciate that nothing can compensate for the horror of the prospect of being liable for the costs of remedial work following the joy of moving into one’s home, bought on the entirely reasonable assumption that the block it is in would have been built correctly. However, given the complexity of this issue and the fact that leaseholders face paralysis, this does offer a route forward. I believe that these measures will help provide some certainty and confidence in this part of the housing market so that the affected flats can be bought and sold again, which would be a significant step forward from where we are at the moment.

For these reasons, I hope that the Fire Safety Bill can reach the statute book quickly, together with the building safety Bill, so that we will have a comprehensive set of measures in place to correct past wrongs and also to move forward safely.

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[Marco Longhi (Dudley North) (Con) [V]]

One of the lessons from the Grenfell tragedy was that a number of companies in the construction sector had been recklessly gaming the system, resulting in unsafe materials being used. But crucially, construction and post-occupancy inspections did not pick up those risks.

As someone who worked in oil and gas and then in construction over several years, I can see the very different approach taken by the two sectors. Many of our constituents who live in leasehold flats face significant costs, such as waking watch costs and several other fire risk liabilities not related to cladding. The new £30 million waking watch relief fund, the £1.6 billion remediation funding and the commitment to recruit hundreds of specialist risk assessors and specialist workers show that this Government are committed to resolving the problem and to supporting people stranded in their property through no fault of their own.

I wish to raise issues brought to me by a constituent. At present, buildings over 18 metres will have all cladding remedial work paid for by the Government. Those in buildings between 11 metres and 18 metres will be offered a loan, with residents in buildings lower than 11 metres receiving no financial support at all, the latter being the situation my constituent’s daughter finds herself in. Although it is right to target remediation first at highest-risk buildings, there is a question of fairness as to who pays if a person happens to have purchased a building that is not as tall.

In addition to the removal of cladding, inspections have highlighted further building faults, such as missing firebreaks, wooden balconies and combustible insulation. The repair costs alone could be in excess of £25,000 per flat. There is no provision for support with these repairs, which will be required before a fire safety certificate can be issued, allowing the resident to eventually sell their home. They would not have been privy to these liabilities as the conveyancing process would not have highlighted the possibility of these risks existing at point of purchase. Risk awareness at the conveyancing stage is something that I raised in my ten-minute rule Bill.

Fire safety officers should not only be competent by the certifications that they hold; they should be present and responsible for sign-off on site at all key stages. While the amendments before us were tabled with good intentions, we cannot delay the Bill any longer. I hope that Ministers will consider a post-construction and occupancy model for fire safety, much as gas and electrical checks are carried out, to pick up on changes to the fabric of a building that could be made over time.

[Mr Deputy Speaker (Mr Nigel Evans)]

Thank you, Marco. We lost your video early on, but we could hear you perfectly.

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

I welcome the Bill but, nearly four years after the Grenfell disaster and despite assurances by the Government, hundreds of thousands of people are still living with the fear that they could be next. It is a scandal that this is the first and only piece of primary legislation on fire safety that this Tory Government have brought forward to prevent such a disaster from ever happening again.

In Liverpool, 10% of buildings are still covered in highly flammable cladding, with a further 5% covered in fire-retardant cladding. Merseyside Fire and Rescue Service has suffered a 35% cut to its funding and lost one third of its firefighters since 2010. Austerity has combined with roll-backs and safety regulations to make a perfect storm.

Time and again, we have heard promise after promise that the recommendations of the first phase of the Grenfell Tower inquiry will be fully implemented, yet the Bill does not include a single recommendation from the inquiry’s first phase. Does the Minister agree that his Government have fundamentally failed to take the necessary steps to keep people safe in their own homes?

Today, and for months now, we have heard from Members across the House about the nightmare situations faced by many leaseholders across the country who have been left physically, mentally and financially trapped in dangerous housing. Many of my constituents have contacted me for support. They are worried sick about being trapped in unsafe housing, crippled by costs they did not incur and with no end in sight.

One pensioner wrote to tell me that he had just been sent a bill for £20,000. He has no savings and no possibility of paying the bill. Two young NHS doctors want to sell up and take positions in hospitals in the north-east, but they cannot; they are trapped in a flat they cannot sell, faced with the possibility of mounting debts due to flammable cladding that they did not install.

I ask the Minister how he sleeps at night, knowing that his Government’s move to cut red tape has left hundreds of thousands at risk in their own homes, and how he can justify asking the leaseholders of those unsafe homes to foot the bill. It is the responsibility of this Government to identify the buildings covered in dangerous cladding and make them safe before another disaster occurs, and to bring the companies that profited from cutting corners and compromising the safety of residents to justice.

Enough is enough. We are now at a crisis point. Instead of further delays and prevarication, I call on Members across the House to do the right thing today and back Lords amendments 2 and 4 so that we can get a grip of this crisis before it is too late.