Building Safety Bill

Baroness Winterton of Doncaster Excerpts

Consideration of Lords amendments
Wednesday 20th April 2022 Commons Chamber

Queen’s and Prince of Wales’s consent signified.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I must draw the House’s attention to the fact that financial privilege is engaged by Lords amendments 6, 17, 22 to 30, 103, 104, 111 to 113, 116, 120 to 127, 137 and 138. If they are agreed to, I will cause the customary entry waiving Commons financial privilege to be entered in the Journal.

Before Clause 117

Remediation of certain defects

[The Minister for Housing (Stuart Andrew)]

I beg to move amendment (a) to Lords amendment 93.

[Madam Deputy Speaker]

With this it will be convenient to discuss the following:

Government amendment (b) to Lords amendment 93.

Lords amendment 94, and Government amendment (a) thereto.

Lords amendment 98, and Government amendments (a) to (c) thereto.

Lords amendment 107, and Government amendment (a) thereto.

Lords amendment 108, and Government amendment (a) thereto.

Lords amendment 109, and Government amendments (a) and (b) thereto.

Lords amendment 145, and Government amendment (a) thereto.

Lords amendment 184, Government amendments (a) and (b), amendment (e), Government amendments (c) and (d), and amendment (f) thereto.

Lords amendment 6, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendments 1 to 5 and 7 to 25.

Lords amendment 26, and amendment (a) thereto.

Lords amendments 27 to 77.

Lords amendment 27, and Government consequential amendment (a).

Lords amendments 79 to 92, 95 to 97, 99 to 106 and 110.

Lords amendment 111, and amendment (a) thereto.

Lords amendments 112 to 144, 146 to 183 and 185 to 191.

[Stuart Andrew]

I must start with a reminder of where this journey started: 72 people lost their lives in the Grenfell Tower tragedy, which was the largest loss of life in a residential fire since the second world war. All our thoughts are with those families who have lost loved ones. The Government are determined to ensure that such a tragedy never happens again.

I thank the Members of this House, noble Lords, cladding groups and industry stakeholders who have worked tirelessly on this landmark legislation. I remind Members that the Bill not only creates an improved building safety regulatory system but protects leaseholders, who have become victims in the building safety crisis. We have stuck to my right hon. Friend the Secretary of State’s principles on building safety, which are that we must make industry pay to fix the problems for which it is responsible; protect leaseholders; and restore common sense to the assessment of building safety risks, thereby speeding up the fixing of the highest-risk buildings and stopping buildings being declared unsafe unnecessarily .

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[Stuart Andrew]

The hon. Gentleman is right that it would not be appropriate for me to speak on behalf of the Welsh Government, and I do not think they would like that either. What is important is that all buildings across the United Kingdom are safe. I hope that we will all learn from each other to ensure that we achieve that objective, because the safety of the residents is paramount in this instance.

I hope that hon. Members will welcome all the changes that the Government have made, which I firmly believe address the key concerns that have been raised in Parliament. It is in all our interests to see this crucial Bill become law as quickly as possible. I hope that all hon. Members across the House will support the Government amendments, and look forward to seeing the Bill implemented so that we can get these buildings into a safe position and give the residents the reassurance that they need.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call shadow Minister Matthew Pennycook.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

This Bill has been a long time in gestation. First published in July 2020, it was subject to extensive pre-legislative scrutiny and was examined in exhaustive detail over five long weeks in Committee in the autumn of last year. Then, in January this year, the Government accepted that the approach they had taken to the building safety crisis over a period of more than four years following the Grenfell fire had not worked, and they announced that it would change. We raised a series of questions and concerns about what that change of approach would mean in practice, but we welcomed the fact that it had finally happened. It is of course right that we seek to ensure that those who profited from the sale of unsafe buildings and construction products pay their fair share when it comes to putting things right, that every developer and freeholder who can shoulders the financial burden of fixing their own buildings, that we restore common sense and proportionality to the assessment of building safety in general, and that leaseholders are properly protected from the costs of remediating all historical cladding and non-cladding defects. Labour has urged the Government to act on all these fronts, and more, for years, and we are pleased that we are now finally making progress toward some semblance of a comprehensive solution to the building safety crisis.

However, the manner and the pace at which this already complex and technical Bill has been overhauled to reflect the Government’s belated change of heart has been deeply problematic. Large sections of the Bill have been completely rewritten on the basis of hundreds of Government amendments tabled in the other place that the noble Lords had relatively little time to consider carefully or properly scrutinise. We welcome many of those amendments, particularly the removal of the building safety charge and the abolition of building safety managers, and we also welcome the important concessions the Government made in the other place in response to Labour amendments—for example, to exempt social housing providers from the levy. But that does not detract from the fact that this is no way to make good law, and I want to put on record the Opposition’s serious misgivings about the way the Government have gone about revising the Bill. As a result of the way it has been modified, it is now, by all accounts, something of a mess, and the five pages of complex Government amendments tabled yesterday afternoon, which again provided hon. and right hon. Members in all parts of the House with little time to properly consider them, do little to remedy that fact.

Nevertheless, the Opposition have always maintained that we want to see a version of the Bill on the statute book as soon as possible. As such, our focus is now on ensuring that its most glaring remaining defects are addressed so that it can be passed in what remains of this Session. To that end, there are five specific issues to be considered today: the duties placed on the Building Safety Regulator with regard to reviewing safety and standards, protection for leaseholders in buildings below 11 metres in height, protection for leaseholders in enfranchised buildings, the issue of buildings held in trust, and the proposed leaseholder cap.

The first can be dealt with very quickly. As well as having the resource and capacity to perform all the complex tasks assigned to it, it is critically important that the new Building Safety Regulator within the Health and Safety Executive be clearly tasked in the early years of its operation with assessing the benefits and costs of a range of measures in relation to safety and standards. Lords amendment 6 specified four—fire suppression systems, the safety of stairways and ramps, the certification of electrical equipment, and provision for people with disabilities—and we supported it. Having maintained in the other place that the amendment was entirely unnecessary, the Government yesterday tabled an amendment in lieu of Lords amendment 6 that almost entirely mirrors its provisions. On that basis, we will support that Government amendment.

The second issue is protection for leaseholders in buildings below 11 metres in height. As I argued on Report on 19 January, 18 metres was always a crude and arbitrary threshold that not only failed to adequately reflect the complexity of fire risk but was an entirely unsound basis for determining which blameless leaseholders were and were not protected by the state from the costs of remediation. The same argument applies to the 11-metre threshold. The blameless leaseholders who are trapped living in unsafe smaller buildings deserve the same protection as those in mid and high-rise unsafe buildings. As the Earl of Lytton argued in the other place:

“There seems no good reason for height exclusion on any moral, economic, safety or practical ground.”—[Official Report, House of Lords, 29 March 2022; Vol. 820, c. 1508.]

The Government maintain—the Minister said as much again in his remarks—that there are no systemic building safety issues with buildings under 11 metres, yet we know from the devastating incident at Richmond House in Worcester Park in 2019 just how dangerous to life defective buildings under this height threshold can be. The Government further maintain that buildings under 11 metres in height that are dangerous are few in number. I suspect that is almost certainly the case, but all the more reason, then, to provide financial support to those blameless leaseholders who find themselves living in them rather than leaving them without protection. I noted what the Minister said when he gave a commitment that the Government would review such buildings on a case-by-case basis, but it begs the question: why will the Government not act by amending the Bill to cater for the exceptional circumstances that he spoke about?

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[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

I pay tribute to Members from right across the House for their support as this Bill has passed its various stages. I have spoken on this Bill a number of times, and it is fair to say that it is a very different piece of legislation from what was initially proposed. My constituents in Vauxhall, like others in constituencies around the country, have a basic right to live in a building that is safe, and it is a shame that it has taken nearly five years after the Grenfell tragedy for Ministers to implement this new regime. I welcome the establishment of the building regulator and the other measures in the Bill to protect lives, particularly the overdue safeguards for disabled occupants of high-rise flats; that is an issue that is not referenced enough.

Sadly, this is not just about safety; it is about who should pay for the mistakes that led to these buildings being unsafe in the first place. For too long, that has been left to innocent victims, with leaseholders and social housing providers having to pay while the developers and builders who are responsible have had their profits protected. I pay tribute to the many leaseholder campaigns and groups caught up in this, including many of my constituents in Vauxhall who have worked tirelessly on this issue for many years. Without them, we would not have reached this point.

The simple fact is that this crisis will not end until leaseholders in buildings of all heights are exempt from all fire safety costs, but that is still not the situation. Leaseholders can still have to pay up to £15,000 if funds cannot be recovered from the developer or freeholder, and leaseholders in buildings under 11 metres are entirely excluded. I place on record my support for retaining the two amendments, referenced by many Members, that were passed in the other place and that would solve these problems. Sadly, they have not been accepted by the Government. It is neither right nor fair that some leaseholders should pay while others are protected, and I hope the Minister will address that when he responds.

Lords amendment 155, tabled by my noble Friend Baroness Hayman, would abolish the unfair cap and legally protect leaseholders from all remediation costs. The Government claim that it is unnecessary to protect buildings under 11 metres, but fire does not discriminate. It does not care if a building is 11, 15 or 18 metres. I have heard from constituents in low-rise buildings in Vauxhall whose mortgage lenders still require a fire safety inspection. If that inspection finds problems, guess what? Those leaseholders in low-rise buildings will have to pay.

We must not allow the technical details of this debate to obscure the fundamental moral principle at the heart of it. Either the leaseholders are responsible for this crisis or they are not. The Government have said for many years that they are not, and I agree with that. I hope that Members will vote today for the amendments that will deliver our responsibility to fully protect leaseholders from all of the costs of the problems they did not cause. In the name of fairness and transparency, I urge all Members in this House to do that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Minister, Stuart Andrew.

[Stuart Andrew]

Once again, I thank all hon. Members for their contributions. They have raised lots of very serious points and questions and have clearly demonstrated a long-standing commitment not only to their constituents, but to this wider issue. I am grateful to right hon. and hon. Members for acknowledging that this piece of legislation is vastly different from what it was, and I apologise to the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), for the necessity, I suppose, of the late amendments that we tabled. I hope that he agrees, however, that it is important for us to get the Bill on the statute book, and to start the process of making sure that people feel safe in their home. I was particularly struck by some of the contributions from my hon. Friends who mentioned that. I also thank all those who have been involved in campaigns; they have shown how hard-working campaigners can make a considerable contribution on a very serious issue such as this.

I will start by responding to some of the amendments that the hon. Member for Sheffield South East (Mr Betts) tabled. I thank him and the Levelling Up, Housing and Communities Committee for their prelegislative scrutiny of the Bill and their tireless scrutiny of the Government’s response since the fire at Grenfell Tower.

Amendment (e) to Lords amendment 184 states that no

“service charge is payable under a qualifying lease”

where the landlord is either a private registered provider of social housing or a local authority. It provides that funding to meet the costs concerned would come from the levy set out in clause 57. I reiterate the Government’s commitment to protecting leaseholders, but we will not be able to support the amendment. We are clear that those responsible for creating historical building safety defects need to pay to put them right. That principle should apply equally where the party responsible is a social housing provider or local authority. Social housing providers will not be subject to provisions that stipulate that building owners and landlords with a net worth of more than £2 million per in-scope building must pay all in-scope remediation costs. They will be required to pay in full only where they were involved in developing the building.

We are also introducing an ambitious toolkit of measures to allow those directly responsible for defective work to be pursued. Those measures include an extension to the limitation period under the Defective Premises Act 1972 to 30 years; a new course of action relating to product manufacturers; and provisions removing the protections afforded by special purpose vehicles and shell companies. We have been working closely with social housing providers to help them to understand the impact of these changes.

Amendment (f) to Lords amendment 184 provides that where

“the freeholder of a building is a local authority”,

remediation costs will be paid “in the first instance” by the developer of the building and otherwise through the levy set out in clause 57. Again, the Government will not be able to accept the amendment because developers are already expected to remediate their buildings, and as we have announced, developers have signed our pledge to commit to do that. We are also introducing the ambitious toolkit that I mentioned.