Barratt veteran to quit amid Gove row with homebuilders

BARRATT has kicked off a search for a new chairman as City veteran John Allan prepares to “time out” next year.

The FTSE 100 housebuilder has brought in headhunters to help with the hiring process, with Mr Allan expected to step down at next year’s annual general meeting.

His planned departure comes at a time when relations between the construction industry and the Government have become particularly rocky.

Industry leaders have voiced frustrations over the way Michael Gove, the Housing Secretary, has threatened to lock them out of the planning system unless they cough up more cash to fix buildings with fire safety issues.

David Thomas, Barratt’s chief executive, last month accused Mr Gove of unfairly targeting housebuilders while letting other parts of the construction industry escape mostly unscathed.

He warned the move would damage investment and “leave no incentive for companies to base themselves in the UK or be listed on the FTSE”.

Mr Allan’s departure is unrelated to the row and more to do with him approaching the maximum tenure recommended by City rules, a source said.

It follows a year of battles between developers and the Government over building safety issues, in which Mr Gove labelled major housebuilders a “cartel” in comments to Tory activists.

Since taking on his department, Mr Gove has demanded that house builders stump up an extra £4bn towards fixing all remaining fire safety issues.

But the Home Builders Federation, which represents the industry, says independent research suggested the number was closer to £2bn.

Mr Allan joined Barratt in 2014 and is set to reach the maximum nine years recommended by the UK Corporate Governance Code in 2023.

Mr Allan, who is also chairman of Tesco, has served previously as president of the CBI lobbying group and chairman of Dixons and Worldpay.

Russell Reynolds Associates, a headhunting firm, has been brought in to assist the search for Mr Allan’s replacement, Sky News reported.