Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 14
14
The Government rightly proposes to take strong action against UK firms, however its options against...
Recommendation
The Government rightly proposes to take strong action against UK firms, however its options against overseas firms who have also contributed to the building safety crisis are more limited. The Secretary of State told us that to reveal its options would be showing too much of the Government’s hand. The Government must take steps to hold overseas developers and other relevant foreign firms to account. When it is appropriate to do so, the Government should set out the actions it has taken. (Paragraph 33) Costs already paid out
Government Response
Acknowledged
HM Government
Acknowledged
Where they are responsible for the development of in scope buildings, the Government has engaged with overseas developers and firms as part of its negotiations with industry to provide a funded solution for the remediation of unsafe cladding in England. Non-UK firms such as Ballymore have been engaged with this process for buildings that they are responsible for in the UK and have made the commitments expected. The measures set out in the Building Safety Act 2022 provide the Secretary of State with the powers to establish a scheme will be used to identify responsible actors who have committed to rectifying building safety defects and improving wider building safety. For those who have not committed to this, the Secretary of State also now has powers to prohibit developers from commencing new development where planning permission has been granted and to block developers from obtaining building control sign-off. Those powers can be exercised where a firm operates in England, regardless of ownership structures. In terms of construction product companies, firms that have any element of overseas ownership, or sources products from overseas, cannot be treated any less favourably than UK domiciled firms or products, in accordance with the UK’s international trade agreements. The Building Safety Act 2022 also confers on the High Court the power to extend relevant liabilities, including liabilities under the Defective Premises Act 1972, from the original company which incurred the liability to companies associated with it, though a Building Liability Order. The High Court may choose to apply a Building Liability Order to a company based overseas if it is an associated company, which would be enforced in the normal manner.