Firms that refuse to fund cladding repairs could face trading ban
Developers that are refusing to contribute to the fund set up to fix dangerous cladding will be warned this week they could be blocked from selling new homes.
The levelling up secretary, Michael Gove, will explicitly threaten retaliation, citing powers in the building safety bill that would stop uncooperative developers getting planning permission.
It is understood that Galliard Homes will be one of the major developers singled out as a potential target for the punitive measures, although other companies are also expected to be named by Gove.
Earlier this month Gove, who was tasked by No 10 with addressing the cladding scandal – which has involved thousands of leaseholders facing crippling bills for the removal of dangerous cladding – signed an agreement with 35 developers, which collectively agreed to contribute £2bn towards fixing buildings they had a role in constructing.
But some developers did not sign up to this supposedly voluntary agreement, and Gove will this week ratchet up the pressure by reminding them that if they continue to refuse, they risk harsh sanctions under legislation about to become law.
The building safety bill was introduced to create a new regulatory framework for building safety after the Grenfell Tower fire. But as it was going through its final stages in the House of Lords Gove introduced amendments that would give him the power to stop firms that have failed to sign his cladding pledge from selling homes.
Under the bill, which is back in the Commons this week and expected to become law very soon, these firms could be blocked from obtaining planning permission, or prevented from getting building control signoff.
Ministers believe that even the threat of these sanctions could be enough to deter
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