By Giles Tagg & Mark Roach

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Published 03 March 2025

Overview

On 26 February 2025, the government published its long-awaited response to the Grenfell Tower Inquiry Phase 2 Report (published on 4 September 2024). The Phase 2 Report examined the underlying causes of the Grenfell Tower fire to identify where mistakes were made and also investigated the response of the authorities to the emergency. Although acknowledging that some steps had been taken by the government, Sir Martin Moore-Bick put forward in that report a total of 58 recommendations (37 of which were directed at the government and 21 at other bodies and institutions) which were considered necessary to bring about the fundamental changes needed to ensure that in future buildings are safe for those who live and work in them. Our article dated 10 September 2024 provides some commentary on those recommendations which may be of particular interest to construction professionals and their professional indemnity insurers.

The response addresses each of the 58 recommendations and also provides details of the action taken to date and the government's long-term vision for reform.

Introducing the government's response, the deputy prime minister Angela Rayner, has stated that it "lays the foundations for long-term reform that will create better, safer buildings" and which will "reset the relationship between the government, the public, the housing sector, our fire and rescue authorities and their services". She acknowledged that this will require a "profound change in culture and behaviour from those who develop, procure, design, build and manage buildings across the built environment, as well as the government, its bodies and wider institutions".

The government has accepted all of the findings of the Inquiry and has committed to act on all 58 recommendations. However, this will not happen particularly swiftly. The reforms will be delivered in three phases. Phase one (running from 2025 to 2026) is to focus on delivering the government’s current programme of regulatory reform and change. Phase two (2026 to 2028) will consist of developing proposals to deliver the Inquiry’s recommendations and wider reform (including further legislation when parliamentary time permits) and from 2028 onwards, the government will focus on implementing the reforms which have been introduced. Critics say this punts implementation into the long grass.

 

Proposed reforms

The proposed reforms in the government's response include:

  • A single regulator for all functions relating to the construction industry is proposed, as recommended in the Phase 2 Report, but subject to two exceptions. The government does not consider it appropriate for the single regulator to undertake testing and certification of construction products, or issue certificates of compliance. The concern is that this would create a conflict of interest within the regulator. As a consequence, testing and certification of construction products will continue to be carried out by private companies.

It has already been announced that all fire-related functions will move from the Home Office to the Ministry of Housing, Communities and Local Government (MHCLG) where it will be co-located with building safety and emergency response functions under one Secretary of State. 

Although it is said that implementation will start immediately, a single regulator is not expected before 2028. There are already concerns about the delays that have arisen for high rise schemes following the introduction of the Building Safety Regulator and therefore it will be vital that any new regulator is properly resourced.

  • A Chief Construction Adviser is to be appointed to advise the Secretary of State on all matters affecting the construction industry. The post was previously abolished in 2015.
  • The government agrees that statutory guidance in the form of Approved Documents needs to kept under review. Interim findings of the current review by the Building Safety Regulator (BSR) will be published by summer 2025 and a full list of recommendations will be published in 2026. A consultation on further changes to Approved Document B will be carried out by the BSR in autumn 2025.
  • The importance of fire engineers in ensuring life safety is recognised by the government which has said it will consider how to most effectively protect and regulate the profession. This will not of course end the shortage of fire engineering expertise in the short term. No details are provided as to how the government will both increase the number, and take up, of places on 'high-quality Masters level courses' in fire engineering. Regulation by an independent body is likely to bring with it a requirement for minimum insurance terms.
  • Tough new rules on construction product safety are proposed, backed by a strengthened regulator to stamp out bad practice and drive higher standards.
  • Stronger, clearer, and enforceable legal rights are promised for residents, making landlords responsible for acting on safety concerns.
  • Social housing residents will be empowered to challenge landlords and demand safe, high-quality housing, by expanding the Four Million Homes resident training programme which offers training and information to residents about their rights and how best to engage with their landlords.
  • A publicly accessible record of all recommendations made by public inquiries since 2024 will be created. This is said to be part of the wider consideration of reforms to the frameworks around inquiries which is currently underway. This government has said that it is taking further steps to put integrity and candour at the heart of public life and the Prime Minister has already committed to implementing a ‘Hillsborough Law’ to place a legal duty of candour on public servants and authorities to ensure that the truth is disclosed and prevent any cover ups.
  • With reference to the government's recently announced Remediation Acceleration Plan, the government has indicated that there will be further changes in the law to create certainty on which buildings need remediating and who is responsible for remediating them, and to make obligations for assessing, completing and regulating remediation clearer, with severe consequences for non-compliance. An update on the government's plans to increase the pace of remediation is promised in summer 2025.
  • Quarterly reports on the progress of implementing the reforms are to be produced.

The above list is of course only a selection of the reforms proposed and does not in any way suggest that the reforms not mentioned are any less important. Full details of the recommendations and responses can be found in Chapter 1 of the response.

 

Construction Products Reform Green Paper

At the same time as publishing its response to the Inquiry's report, the government has published a new Construction Products Reform Green Paper. This sets out a range of proposals for construction products reform, including proposals that address the Inquiry‘s recommendations. It also acts as the government's long overdue response to the Independent Review of the Construction Products Testing Regime carried out by Paul Morrell and Anneliese Day KC and published in April 2023. The government acknowledges that "critical gaps persist in the construction products regulatory framework" and proposes "far-reaching reforms" aimed at enhancing safety and ensuring accountability. 

A key concern raised in the Morrell-Day review was the limited scope of current regulation which was estimated to leave two-thirds of construction products unregulated. To address this, the government plans to implement "a proportionate, risk-based general safety requirement that applies to all currently unregulated construction products". Under this requirement, all manufacturers will be responsible for assessing the safety risks associated with their products before they are marketed. 

For products that do fall under designated standards, there will be stronger sanctions for failing to comply with those standards. Manufacturers that engage in misleading practices or neglect their responsibilities regarding product safety can expect to face both civil and criminal penalties.

Improved enforcement mechanisms for the national regulator are proposed including both the ability to impose sanctions and to carry out proactive market inspections. It is recognised that all stakeholders need to be able to access clear and credible product information and reforms are suggested to achieve this. The use of advanced technologies, such as Digital Product Passports, are seen as a way to improve transparency and traceability in the construction products sector.

With confidence in product testing and certification at a low, the government acknowledges that there is a pressing need for reform in this area. Other reforms include enhanced coordination among regulatory bodies and a strengthened accountability framework.

The consultation will last for 12 weeks and will end on 21 May 2025. Further details of the consultation and how to respond can be found here.

 

Comment

The government's response to the Inquiry's Phase 2 Report should be welcomed as it shows a commitment to improve all aspects of building safety to help to prevent a tragedy such as the Grenfell Tower fire ever happening again. However, the devil will of course be in the detail when it comes to implementation. For example, the government plans to review the definition of a higher-risk building; a small tweak to that definition could have a significant impact for the industry.

The construction industry has been operating in a period of upheaval since the Grenfell Tower fire and is still adjusting to the radical changes implemented by the Building Safety Act 2022 (and a myriad of secondary legislation). Care must be taken to ensure that the further reforms proposed over the next three years are implemented in a way that does not stifle productivity and growth in the construction sector. One thing is for sure – the construction industry can expect further changes – and lots of them.

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