‘To make buildings safe!’ is the obvious answer, but …
Why is Michael Wade, the insurance businessman and former Conservative Party treasurer advising government, rushing his proposal to dump long-term loans on cladding leaseholders, which will be part of the Budget on March 3?
One consequence will be that liability will be established before the really damaging details of the Grenfell Inquiry emerge later in the year concerning government and industry failings.
LKP’s alternative proposal is demanding levies from those responsible for the cladding disaster – housebuilders, cladding manufacturers etc, who rigged the build safety system to their advantage.
It is quite possible that the inquiry will result in corporate manslaughter charges, and the revelations to date of firms such as Kinspan rigging safety tests AFTER the Grenfell tragedy are shocking.
So the LKP argument for levies from housebuilders and cladding manufacturers may be much stronger by autumn than it is now.
All leaseholders want their buildings to be safe, but cladding remediation is not moving that fast.
Here is an MHCLG data release acknowledging that 58% of private blocks have not had their ACM (Grenfell) cladding removed 3 1/2 years after Grenfell fire.
So what is to be gained by establishing near limitless liability by leaseholders?
Earlier this week the government declared – in the Daily Mail – that it was going to levy £2 billion off the housebuilders – which is certainly owing to push-back on the Wade loans proposal. But it is not enough.
Who gains if we now establish that all – or the vast majority of the cost – is dumped on leaseholders now. Quickly.
Cladding remediation is going to take years.
One could also ask what are the consequences for the housing market generally by indenturing leaseholders to ill-considered, decades long loans.
Chancellor pressed for rescue package for families hit by building safety scandal Asked for a multi-billion-pound deal to repair homes with dangerous cladding Sources told of ‘intensive efforts’ to persuade Treasury to add a substantial sum to the ‘developers levy’ Pressure is mounting on the Chancellor to sanction a £10billion rescue package for families hit by the building safety scandal.
Big building firms face multi-billion-pound levy to help families pay to repair homes with dangerous cladding The levy could raise up to £200million a year – a total of £2billion over ten years It could mean a levy on all high rise flats and separate charge on major builds Big building firms face a multi-billion-pound levy to help families pay to repair homes with dangerous cladding in the wake of the Grenfell fire.
Since the first buildings with dangerous cladding were discovered in the aftermath of the Grenfell Tower fire, one question has hung continuously over all efforts to make them safe: who is going to pay? Now, after three and a half years of stilted progress, the government appears to be on the verge…