Gove threatens ban on cladding suppliers failing to pay for retrofits

Aaron Morby 2 years ago
Share

Levelling Up and Housing Secretary Michael Gove has threatened a trade ban on suppliers of cladding and insulation that refuse to play their part in funding the billions of pounds needed for building fire safety retrofits.

Government is now demanding manufacturers make their contribution to £9bn remediation bill
Government is now demanding manufacturers make their contribution to £9bn remediation bill

Opening a second front on raising cash from the industry to meet huge remediation costs, Gove has written to the Construction Products Association saying it is not right that developers alone shoulder the burden of paying for retrofitting unsafe buildings.

He says that three manufacturers associated with the Grenfell building alone have banked total profits of £700m in the four years since the Grenfell disaster.

In a letter demanding a meeting with the major suppliers body, he says: “A new deal must include a clear commitment from the sector that they agree to make financial contributions in this year and in subsequent years as we have already asked developers to do.

“The total contribution from the cladding and insulation sector must represent a significant portion of the total remediation costs, caused by the dangerous products sold by some of your members.”

Gove highlights the cost estimate to remediate unsafe cladding on 11-18m and over 18m buildings stands at £4bn and £5.1bn respectively.

Like developers, Gove is giving suppliers until March to put together a funding plan. If they fail to act he warns he will pursue individuals and firms liable for building defects and could even institute a ban on trading.

Gove said: “There is no future for those companies and directors who are not fully committed to upholding the safety of residents and fixing past wrongs.”

In the letter, he adds: “I note that from publicly available sources profits made in the four years after the Grenfell Tower tragedy by just the UK arms of the three cladding and insulation firms most closely associated with the refurbishment of the Grenfell Tower total over £700m.

“The cladding and insulation sector has an unquestionable responsibility for contributing to the remediation of their unsafe cladding products and must now come forwards with proposals to account for this.

“I expect a public funding commitment from your sector by early March, which would be made available to the public and to affected leaseholders.

“I am sure you are as committed as I am to fixing this broken system, and I hope we can work together to do that.

“But I must be clear, I am prepared to do whatever it takes to deliver our objective including using our regulatory framework to limit any culpable company from operating and selling products in this country in the future; and I will pursue those individuals and firms liable for building defects who are unwilling to do the right thing now.”

 

 

Latest news

Family confirm death of Des O’Rourke

Deputy chair and co-founder of Laing O'Rourke dies aged 75
4 hours ago

Striking new-look for Canary Wharf HSBC tower

Large chunks of upper floorplate to be removed in major overhaul
10 hours ago

Kier halves debt to £115m after strong trading year

Order book up 7% to £10.8bn with 85% of work secured for year ahead
11 hours ago

Developer blasts “unfair” power charges on huge Liverpool site

Romal Capital unhappy about site power hook-up costs
11 hours ago

Regal London to start Wembley 1000-bed student scheme

Backer found to deliver £400m twin tower student scheme
10 hours ago

Breyer Group bags £163m housing repair deal

Major repair and maintenance win from Kingston Council
11 hours ago

VolkerFitzpatrick lands Piccadilly Line upgrade deal

Contractor to work on Cockfosters depot
11 hours ago

26 face fight to renew spots on £1bn NEPO civils deal

Next generation framework to start in March 2025
1 day ago

Go-ahead for £170m King’s Cross life sciences office project

Innovative arched design to carry landmark building over railway tunnels
1 day ago

Mitie buys power contractor ESM for £8.5m

Building FM firm strengthens high voltage contracting offer
1 day ago

New vision unveiled for £5bn Liverpool Waters

More housing included in central docks area after Labour £55m funding boost
2 days ago

String of contract wins sees turnover surge 25% at Mace

Construction division sees revenue leap to £1.73bn
1 day ago

Morgan Sindall wins £32m Walsall waste centre

Contract will transform former metal factory site
1 day ago

Kier wins £30m Greenwich teaching block

London South East Colleges plans to spend £47m on Greenwich Campus redevelopment
2 days ago

Blenheim House Construction applies for administration

Surrey contractor employs around 80 staff generating £87m turnover
2 days ago

GMI chief jumps to Henry Boot Construction

Lee Powell will replace Tony Shaw as MD when he leaves at the end of 2024
2 days ago

Avant Homes makes £109m loss

House builder reveals huge loss just days after entering Crest Nicholson bid race
3 days ago

Greggs unveils plans for giant distribution centre

Bakery giant to build 311,551 sq ft logistics centre in Kettering
2 days ago

£330m south east London 1,250 homes scheme approved

Outline planning for New Belvedere development near the Thames
2 days ago

Green light for Birmingham 1,200-bed student scheme

Cambrian Wharf project will rise to 14 and 35 storeys
2 days ago

Welsh fit-out specialist files administration notice

£30m turnover employee-owned Paramount D&B lodges court notice
3 days ago

Skanska signs £105m London Millbank office rebuild

Original 1915 building facade will be dismantled and rebuilt
3 days ago

Historic facade contractor goes into administration

Administrator seeking buyer for Charles Henshaw & Sons
6 days ago

Three-year HS2 station box excavation completed

Enough clay to fill 300 Olympic sized swimming pools removed from Old Oak Common site
3 days ago

BAM starts £88m Fife passivhaus school job

1,800-pupil school will be built near Rosyth Docks
3 days ago

Torsion appoints new Chief Operating Officer

David Worsley promoted as leadership team shuffled at Leeds based firm
3 days ago

Tilbury Douglas site manager saves schoolboy’s life

Site manager carries collapsed schoolboy to resuscitation unit he helped build
6 days ago

Extra HS2 payment sees SCS contract jump to £4.24bn

Skanska Costain Strabag JV additional payments rise to £650m after third handout
3 days ago

Plans lodged for 3,300-home Salford tower cluster

£1bn Regent Park scheme includes UK's third tallest building at 70 storeys
7 days ago

Domis founder Lee McCarren steps down

Fellow director Kingsley Thornton takes helm as co-founder retires
7 days ago

Contractor services