Fire Safety Bill

Stephen Timms Excerpts

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

[Ben Everitt]

I welcome my hon. Friend’s intervention. He is right. We are operating within a financial envelope, and one of the most pleasing things about the intervention from the Treasury announced last week is that it is what we would probably call an “elegant” financial solution. The transfer of risk away from the leaseholder to the building, combined with capping repayments at £50 a month, is possibly the most generous and neatest way that the Treasury could do that, and in effect it has gone a long way to protecting leaseholders from those unaffordable costs.

We have all been working towards a comprehensive solution for redressing those defects and reforming safety practices in the industry, in order to ensure that the heart-breaking events of Grenfell never happen again. The Bill is a key part of that, and significant progress has been made across the board, with ACM cladding either removed or in the process of being removed from every building in the social sector, and work on private sector buildings taking place at pace.

I also welcome the agreement on EWS1 forms, which will provide much-needed reassurance to leaseholders. We need such reassurance so that leaseholders face fewer burdens when they are trying to get on with their lives. We sometimes forget that we are here for people who have lives and worries, and we need to get out of their way and let them get on with their lives. These measures go a long way to addressing leaseholders’ largest concerns. This Bill and the draft Building Safety Bill are big bits of government, and more bits of government will be added. However, it is all necessary. Reference has already been made to the pre-legislative scrutiny carried out by the Select Committee, of which I was part. It was a big bit of government, but it is all necessary.

This scandal has highlighted the security of everyone living in buildings, and that must be the principal concern of this Bill and the draft Building Safety Bill. We must protect people’s lives where they are most at risk. There are some well-meaning amendments to the Bill but, as my hon. Friend the Member for Grantham and Stamford (Gareth Davies) noted, they would slow down the pace of the Bill’s implementation. I do not want to see the Bill frustrated. It is crucial to building safety that we get it up and running. We have heard in this debate about the difference between pace and speed, and about getting it right. We need to get this right.

[Stephen Timms (East Ham) (Lab) [V]]

I support Lords amendment 2, and I hope we will be able to vote on the amendments that Members have tabled. I also hope the Government will finally honour the promises to leaseholders that they have been making for the past three years, and this Bill is an opportunity to do that.

I want to draw the attention of the House to a problem facing hundreds of my constituents living in flats recently built by Barratt at Waterside Park alongside the Thames and Upton Gardens on the site of the Boleyn Ground, where West Ham used to play. Freeholds have since been bought from Barratt by Aviva. The landlord agent is Mainstay, and the property manager is FirstPort. The buildings in both developments have a B1 EWS1 certificate. There is combustible material in the walling, but the risk is not sufficient to warrant requiring its replacement. The combustible material is in a vapour layer within the structure. That material is still being used in buildings being built now, and there has been no suggestion that builders should stop using it. Leaseholders in the development have had no problems in obtaining a mortgage, given the B1 certification.

These buildings clearly do not meet the criteria for the Government’s cladding fund. Nevertheless, the property managers made an application for funding to replace this combustible vapour layer. In the case of Upton Gardens, the application has been refused. In the case of Waterside Park, the decision is still awaited, but presumably that will be refused as well. However, the property managers appear poised to embark on replacing this combustible material at an estimated cost of £30,000 per flat, which they will charge to the leaseholders. They have appointed contractors and paid for preliminary work already, although work has not yet begun in earnest. The material to be replaced is being used in buildings being built at the moment. There is no requirement to replace it, and the residents do not want to fund its replacement, so why is replacement poised to go ahead? The only motivation the leaseholders have been able to identify is to provide fee income for the managers.

Will the Minister state clearly today that buildings with B1 certification should not be remediated without agreement of the leaseholders? At the start of the debate, he said that 95% of high-rise buildings with unsafe ACM cladding have either been remediated or have workers on site doing the job. Can he tell us the actual figures? How many buildings have been remediated? How many buildings have workers on site? My constituents would be very interested to hear those numbers.

[Brendan Clarke-Smith (Bassetlaw) (Con) [V]]

This is a short but critical Bill. The Lords amendments, while well-intended, are inappropriate for the Bill and would require the drafting of primary legislation to make them legally workable. To make things worse, if these amendments were added to the Bill, both the Government and the taxpayer could be exposed to action by the owners of these buildings. That must be avoided, and therefore the Bill must be watertight. It would be quite wrong if we had to withdraw the Bill because of this.

Those undertaking inspections and assessments need clarity, and the key to that is to keep the Bill short. It would also be wrong to delay the implementation of the judge’s recommendations from the first phase of the Grenfell inquiry, which the amendments would potentially cause. Legal advice must be accepted and forms the basis for making good on our promises, as does the input of independent experts.

Decisive action must be taken. The extra £3.5 billion committed by the Government, bringing total funding to £5 billion, is to be welcomed. This has culminated in a commitment to fully fund the replacement of unsafe cladding for all leaseholders in residential buildings of 18 metres and higher. While that is not the case for buildings between 11 and 18 metres, the new scheme will protect against unaffordable costs and limit them to £50 per month towards remediations. That also gives reassurance to banks and mortgage lenders. The new developer levy will ensure that developers make a contribution, and Gateway 2 should raise an extra £2 billion towards this.

As has been stated before, the Building Safety Bill will provide a new era of accountability for managing risk with the construction of these buildings. There will be tougher sanctions for those who fail to meet their obligations and a guarantee that it is they, not the taxpayer or leaseholders, who will remedy that. The Bill will also ensure that there is more transparency about the cost of maintaining a safe building, such as in the annual service charge. It is right that reasonable limits are placed on those charges and that leaseholders are protected from large-scale remediation costs. The Association of British Insurers has also backed the Government’s stance, as has Dame Judith Hackitt, the Government’s independent adviser on building safety.

The replacement of unsafe cladding and other remedial works must be taken seriously. The Fire Safety Bill alone cannot remedy that. Therefore, although these well-intentioned amendments are not appropriate, the wider approach must be considered and, indeed, welcomed.

Fire Safety Bill

Stephen Timms Excerpts

Consideration of Lords message
Tuesday 27th April 2021 Commons Chamber

[Christopher Pincher]

I want first of all to thank all hon. Members for joining in this crucial debate, because all of us in this House agree that residents deserve to be safe, and to feel safe, in their homes. I want to reiterate in the strongest terms the importance of the Bill as a step along the way to delivering that objective, and the risk that we would create if we were to continue to allow these remediation amendments, however well-intentioned, to delay legislation.

The Bill was introduced over a year ago. We are almost at the point of getting it on the statute book, and it is vital that we remind ourselves of the fundamental purpose of what we are seeking to achieve—to provide much-needed legal clarification of the Regulatory Reform (Fire Safety) Order 2005 and direct the update of the fire risk assessments to ensure that they apply to structure, external walls and flat entrance doors. I will give way briefly to the right hon. Member for East Ham (Stephen Timms), but I want as many hon. Members to speak as possible.

[Stephen Timms (East Ham) (Lab)]

I am grateful to the right hon. Gentleman for giving way. Ministers have repeatedly said that leaseholders should not bear the costs of the fire cladding scandal. Why is he insisting today that they should?

[Christopher Pincher]

The right hon. Gentleman knows of the very significant amount of public money that we have set aside to remediate those buildings that are the most at risk of fire, where serious injury might take place, and the financial provisions that we have set aside also to help other leaseholders. If we do not resolve the Bill this week, fire assessments will not cover those critical elements of which I spoke, and they may continue to be ignored by less responsible building owners. Moreover, the fire and rescue services will be without the legal certainty that they need to take enforcement action. Ultimately, that will compromise the safety of many people living in multi-occupied residential buildings. Without the clarification provided by the Bill, it will mean delaying implementation, possibly by a year, of a number of measures that will deliver the Grenfell inquiry recommendations.

As I said, I want as many Members as possible to have the opportunity to speak, so I will say no more for the moment until I wind up the debate, save for reiterating two points. First, these remaining amendments, although laudable in their intentions, would be unworkable and an inappropriate means to resolve a problem as highly complex as this. Secondly, the Government share the concerns of leaseholders on remediation costs, and have responded, as the House knows, with unprecedented levels of financial support to the tune of over £5 billion, with further funds from the developer tax, which the Treasury will begin to consult upon imminently, as well as the tall buildings levy. Developers themselves have begun to announce more significant remediation funds.

It is in everyone’s interests to ensure that we do not put at risk the progress that has been made by failing to get the Bill on the statute book by the end of this Session.

--- Later in debate ---

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

I am extremely grateful for the opportunity to speak so early in this important debate. It is a pleasure to follow the hon. Member for Stevenage (Stephen McPartland). I thank their lordships for the tenacity and perseverance they have shown over many months in standing up for all the blameless leaseholders affected by the cladding crisis, including the many thousands who live in one of the more than 70 affected buildings in my constituency.

In seeking last week to persuade their lordships to cease insisting on amendments designed to protect all leaseholders from remediation costs, the Minister for Building Safety argued once again that such provision is unnecessary and that to continue to seek to amend the Bill in such a way would risk its passage in this Session, could increase fire safety risks and might “ultimately cost lives”. Yet it is the very fact that this crisis is already ruining countless lives that led their lordships to insist once again that this place reconsider, and they were entirely right to do so.

[Stephen Timms]

I agree with what my hon. Friend says. I wonder whether he has visited claddingscandalmap.co.uk, which maps 450 buildings with 60,000 homes affected by this scandal. It also shows the Members of this House who are voting to force leaseholders to pay towards the costs.

[Matthew Pennycook]

I thank my right hon. Friend for that intervention. I have seen the site in question, and it brings home—I know he shares my feelings, as his constituency is so close to mine—the fact that certain parts of the country with high numbers of new build properties, including constituencies such as ours, are particularly badly affected. I have tens of thousands of constituents affected.

As welcome as they were, the five-point plan and the additional grant funding that the Government announced on 10 February are still only a partial solution to the cladding crisis, and they consciously and deliberately leave a significant proportion of leaseholders exposed to costs they cannot possibly hope to bear. For significant numbers of leaseholders, that exposure is not some theoretical future risk, but a reality that they are already confronting.

To take just one example, I had a lengthy exchange yesterday with the right-to- manage directors of a small 24-unit building in east Greenwich, Blenheim Court, which requires urgent remediation and is under 18 metres in height. As things stand, not only are the leaseholders in question living with the punishing uncertainty of not knowing if or when their building might be issued with a forced loan of the kind the Government propose, but because they do not have the funds to commence remediation works, they are struggling with myriad secondary costs, including a soaring building insurance premium, which has led their service charges to increase from about £2,500 a year per flat to more than £130,000—I have seen the invoice, and the figure is correct—and there is a very real risk of mass defaults as a result.

Every week that this House fails to act, more leaseholders are placed in similar situations and put at risk of negative equity and bankruptcy. I have absolutely no doubt that the Government will ultimately be forced to bring forward a more comprehensive solution that protects all affected leaseholders from the costs of fixing both cladding and non-cladding building safety defects. Seeking to pass the costs on to even a proportion of them will almost certainly mean that the works simply do not get done. Unless this House is content to follow that path and see many more lives needlessly destroyed in the interim, it must act today and take decisive steps towards resolving this crisis.

I urge Ministers, even at this late stage, to honour their commitments previously given from the Dispatch Box and come forward with a sensible concession. If they do not, I urge MPs from across the House to protect blameless leaseholders and support the amendment in the name of the Lord Bishop of St Albans in the Division Lobby shortly.