Unsafe Cladding: Protecting Tenants and Leaseholders

Shabana Mahmood Excerpts

Monday 1st February 2021 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab) [V]]

The cladding scandal has wrought emotional and financial devastation upon my constituents who live in affected buildings. The human impact of this crisis on leaseholders is horrendous. One constituent recently told me:

“It is pretty much all I talk and think about. I have thought about killing myself and have started counselling to try to manage the thoughts and my anxiety.”

The Government have not yet offered the scale and range of measures necessary to meet the full impact of this crisis. I hope this debate changes the dial on their approach. I wish in particular to address the issue of insurance costs, which I have raised in this House for the past year. The Islington Gates development in my constituency saw a hike in insurance prices from £36,000 to £321,000. The Brindley House development in my constituency has the horrible honour of being the first building—in May last year—to find itself uninsured as a result of the cladding scandal. It was eventually able to secure cover, but it was being quoted prices of half a million pounds.

I have been writing to Ministers and officials at MHCLG and the Treasury, as well as the Financial Conduct Authority, ever since these issues came to light in my constituency, but to no avail. It is clear to me that the Government need to step in to sort out the insurance costs issue, because there seems to be little relationship between the interim measures that leaseholders are paying for, such as very expensive, state-of-the-art alarm systems, and the cost of the insurance premiums that they are being quoted. That has to be called out, and it is clear to me that some form of guarantee eventually needs to be offered by the Government that reflects a balance of all the risks and affordability for our constituents.

In terms of the way forward, I associate myself with the remarks made from the Labour Front Bench, but I also believe that the businesses, developers and construction companies responsible for putting these buildings up should face some consequences if they do not step up to remedy the defects that they are responsible for. Such businesses should not be able to bid for and receive public sector contracts. I think of developers such as Galliford Try in my constituency, which is failing to engage with leaseholders over Islington Gates. It is eligible to bid for projects that are part of the West Midlands Combined Authority area framework. I do not believe that anyone who fails to live up to their responsibilities and does not pay their due liabilities to wider society should get our money. It is unconscionable that ordinary people who are wholly innocent and have done nothing wrong are losing everything that they have ever worked for, and that those responsible are getting off scot-free. This House should act as one tonight, call time on this behaviour and stand with leaseholders.