Government to take ‘every step necessary’ to force building industry to pay to remove dangerous cladding, says Gove
The government will take "every step necessary" to ensure the building industry fixes the problem of dangerous cladding blighting thousands of leaseholders in medium rise blocks, Michael Gove has said.
Four and half years after the Grenfell fire exposed the dangers of cladding, the Housing Secretary said that no leaseholder living in a block above 11 metres would have to pay for fixing dangerous problems.
He confirmed that he had "an absolute assurance" from Chancellor Rishi Sunak that he was ready to impose taxes on the sector if they were not prepared to come forward with a solution.
"We will take action to end this scandal and protect leaseholders," he said.
"We will make industry pay to fix all the remaining problems and help to cover range of costs facing leaseholders.
"Those who manufactured combustible cl adding and insulation–many of whom have made vast profits, even at the height of the pandemic – they must pay now instead of leaseholders."
Mr Gove said while he was seeking to convene a meeting with industry to find an agreed way, he was ready if necessary to "impose a solution on them in law" to cover the estimated £4 billion costs to deal with the issue.
"The fact that the (Treasury) Chief Secretary (Simon Clarke) and the chancellor have authorised me to use the prospect of taxation, shows that we are prepared to take every step necessary," he said.
However, shadow housing secretary, Lisa Nandy, said that a leaked letter from Mr Clarke showed he had warned that a decision to impose new taxes was "not a given at this point".
"It appears what he's told the public – that tax rises are the backstop – is not what he's told the Treasury," she said.
In a significant U-turn, Mr Gove confirmed that lease holders in buildings between 11 m to 18m would no longer have to take out loans to pay for removing cladding, bringing them in line those in high-rise blocks.
"Leaseholders are shouldering a desperately unfair burden. They are blameless and it is morally wrong that they are the ones who should be asked to pay the price," he said.
Mr Gove said he had established a dedicated team to expose and pursue the firms responsible.