Housing committee chair Clive Betts says 鈥渁ll relevant parties鈥 must contribute to fixing unsafe buildings

The chair of an influential parliamentary committee has called on the government to set out what steps are being taken to make sure more of the construction industry pays out for cladding remediation costs.

Clive Betts, chair of the cross-party Levelling Up, Housing and Communities committee, said that 鈥渁ll relevant parties鈥 to the building safety crisis should be required to make financial contributions.

In a letter to housing secretary Michael Gove, Betts asked what measures will be taken to ensure sectors which are yet to make a public funding commitment pay up for the work.

Clive-Betts-5

Clive Betts wants more of the industry to shell out on the cost of repairing defective cladding

A group of 35 housebuilders have so far pledged to pay 拢2bn to fix fire safety issues on blocks which they have had a role in developing, on top of a 拢3bn levy for blocks where those responsible for the defects cannot be identified or compelled to rectify them.

But no agreement on funding has been reached with the products sector after talks between the government and industry group the Construction Products Association (CPA) broke down last week.

Betts told Gove: 鈥淭he Committee is disappointed to learn from your announcement that the Construction Products Association has not made a public funding commitment.鈥 And in a separate statement, the veteran Labour MP accused the CPA of 鈥渄ragging its feet鈥 on the issue.

His comments add to growing calls for the costs to be shared more widely across the construction industry and not just housing developers and product manufacturers, the two sectors which have so far been targeted by the government.

Materials giant Kingspan has said that the costs should be 鈥渟pread across the construction industry鈥.

A statement posted on the firm鈥檚 website said that resolving building safety issues was a 鈥渕ulti-faceted challenge covering a wide range of design, installation and product issues鈥.

The firm, which reported a pre-tax profit of 鈧689m (拢573m) last year 鈥 a 50% increase on 2020鈥檚 figure 鈥 added that it would contribute to a 鈥減roportionate and equitable鈥 funding mechanism that is 鈥渁pplied across the entire construction industry鈥.

Kingspan also said it stands by a commitment it made in February last year to pay its share of remediation costs 鈥渨here [it has] responsibility鈥 for the inappropriate use of combustile insulation in high-rise residential buildings and 鈥渋ts safe retention cannot be supported by testing鈥.

CPA chief executive Peter Caplehorn said yesterday a settlement should include 鈥渆verybody involved鈥ho had authority in how these buildings were put together鈥.

He added that there are concerns among product manufacturers about the role that 鈥渋ncorrectly specified or substituted products鈥 have played in the building safety crisis.

A report by the Levelling Up, Housing and Communities select committee last month on approaches to funding remediation works said that the 鈥渨hole industry must take collective responsibility鈥.

While it said that 鈥渟ome organisations may feel that they are more innocent than others鈥, the government should identify all who bear responsibility including product suppliers, installers, contractors, and subcontractors and legally require them to pay up.

The report also said that the government shares responsibility for the crisis on account of its 鈥渞egulatory failings鈥.

Last week, the executive chair of the Home Builders Federation Stewart Basely argued that other parts of the construction industry aside from the housebuilders should share the costs for fixing unsafe buildings.

Housebuilders to have signed Michael Gove鈥檚 cladding costs pledge

  • Avant
  • Ballymore
  • Barratt
  • Bellway
  • Berkeley
  • Bewley
  • Bloor
  • Cala
  • Churchill Retirement
  • CG Fry
  • Countryside
  • Crest Nicholson*
  • Croudace
  • Davidsons
  • Fairview
  • Gleeson
  • Hill Group
  • Jelson
  • Keepmoat Homes
  • Tilia
  • Lioncourt Homes
  • London Square
  • Lovell
  • Mactaggart & Mickel
  • McCarthy & Stone
  • Miller Homes
  • Morris Homes
  • Persimmon
  • Redrow
  • Rowland Homes
  • Strata
  • St Modwen
  • Taylor Wimpey
  • Vistry Partnership
  • Wainhomes
  • William Davis

*Signalled intent

He said: 鈥淭he candid truth is the government sees us as a relatively soft target because we鈥檙e larger UK taxpaying companies and we would like to see Mr Gove use the same energy to go after some of the other actors.鈥

DLUHC has also confirmed that the funds raised will be used to fix 鈥榥on-cladding鈥 safety issues such as missing fire breaks.

Betts has previously raised concerns that leaseholders may still be hit with some of these costs, which will account for an estimated 55% of the 拢3.6bn the G15 group of housing associations is planning to spend on building safety by 2036.