Watchdog warns government likely to miss cladding removal deadline

The United Kingdom’s spending watchdog has indicated that the government risks failing to meet its self-imposed deadline for completing cladding removal unless the pace of work accelerates. A recent report from the National Audit Office (NAO) revealed that as much as 60% of structures containing hazardous cladding remain unidentified by the government. The NAO further stated that, based on the current rate of advancement, the government is projected to miss its self-determined completion target of 2035 for these remediation efforts. Additionally, the NAO cautioned that a single payment to an applicant might have resulted in over £500,000 being lost due to fraud, prompting an examination of existing counter-fraud frameworks. Building Safety Minister Alex Norris commented that the speed of the works has been “unacceptably slow” and announced that the government intends to soon present its Remediation Acceleration Plan. This report comes after the Grenfell Inquiry concluded in September, which determined that risks were disregarded and identified “systematic dishonesty” among those responsible for manufacturing and selling the cladding implicated in the 2017 fire in west London, where 72 individuals perished. The assessment evaluated the speed at which the Ministry of Housing, Communities and Local Government (MHCLG) was progressing with the replacement of hazardous cladding on tower blocks across England, serving as an update to a prior NAO report from 2020. It noted “a substantial increase in remediation activity” since that time, with 4,771 buildings exceeding 11 metres in height having been included in the government’s remedial works scheme by August. Nevertheless, an estimated 7,200 additional buildings in England containing this type of cladding remained unidentified, and some “may never” be, the NAO further stated. The report also identified slow progress in the actual replacement of the cladding. Despite the MHCLG allocating £2.3 billion to undertake work on identified buildings, the report indicated that remediation had been finalized on approximately one-third of these structures, while work had not yet commenced on half. The government’s proposed completion date for cladding works on these buildings is 2035; however, the report asserted that this deadline is unlikely to be met, citing “significant challenges to overcome.” The NAO additionally cautioned that the government’s selected funding strategies, while prioritizing speed, “increased the risks of poor value for money and fraud.” The report noted that the department had identified potential fraud-related losses exceeding £500,000 during the 2023-24 period. This discovery prompted a review of counter-fraud mechanisms and the formulation of plans to enhance fraud management in 2024. Gemma Lindfield, a resident of an east London apartment block affected by dangerous cladding, expressed a lack of surprise but voiced hope that the report would prompt governmental action. She stated that numerous problems, such as issues with fire doors and a panel block system, were discovered in her building and remain unaddressed, cladding included. Ms Lindfield elaborated, “I had to pay for the waking watch and our building insurance since 2020 has more than doubled.” She added, “It’s all very well doing the cladding but until they fix the wider issues, we will remain in a building that isn’t safe.” She further mentioned that her developer is acting “very rigid in terms of what they will remediate.” “Because it’s not possible to sell the property, the price of it has effectively fallen by about 25%,” she stated, concluding that “people cannot move on” until a solution is identified. The NAO put forth a recommendation that if the identification of buildings with dangerous cladding does not show improvement by the close of 2024, the government ought to explore alternative actions. These proposed measures encompass mandatory registration for medium-rise buildings, along with more stringent enforcement activities and initiatives to assist in resolving disputes between residents and building owners, mirroring provisions for high-rise buildings under the Building Safety Act 2022. The report observed, “Many people still do not know when their buildings will be made safe, contributing to residents suffering significant financial and emotional distress.” Building Safety Minister Alex Norris commented: “The pace of remediation to make homes safe has been unacceptably slow. “This government is taking action – meeting our commitment to invest £5.1bn to remove dangerous cladding and making sure those responsible pay for the rest.” He continued: “Since coming into office, we have ramped up work with local authorities and regulators to speed up remediation and we will set out a Remediation Acceleration Plan soon.” The watchdog additionally pointed out challenges in maintaining the £5.1 billion cap on taxpayers’ contributions towards the works. The MHCLG’s total cost estimate for all the works reached £16.6 billion. The NAO noted that while the government intended to recover approximately £3.4 billion through a new Building Safety Levy, its introduction is not anticipated before autumn 2025 at the earliest. Over the last six years, London has seen more than £1 billion disbursed for the removal of dangerous cladding from its tower blocks. The Greater London Authority, responsible for administering these schemes on behalf of the government, reported that 58% of the works are either fully remediated or currently in progress. The findings of this report emerge following Chancellor Rachel Reeves’ Budget announcement that the government plans to allocate over £1 billion for repairs to buildings with dangerous cladding in 2025-26, encompassing fresh investment aimed at accelerating the remediation of social housing. Gareth Davies, the head of the NAO, stated: “There is a long way to go before all affected buildings are made safe, and risks MHCLG must address if its approach is to succeed.” He added: “To stick to its £5.1bn cap in the long run, MHCLG needs to ensure that it can recoup funds through successful implementation of the proposed Building Safety Levy.” Sir Geoffrey Clifton-Brown, chair of the Commons’ Public Accounts Committee, who had previously met with Grenfell fire survivors, remarked that “the programme is falling behind schedule and MHCLG needs to pick up the pace to get it back on track,” further asserting that “the government must take steps to better protect the taxpayer.” He emphasized: “It urgently needs to ensure its fraud controls are working and that developers contribute their fair share to the costs.”