Cladding firms ‘are hiking prices for fire safety work’ after Grenfell tragedy

Companies were accused today of cashing in on the rush to make tower blocks safe as it emerged they are hiking charges for materials and work.

Local authorities may face bills totalling hundreds of millions of pounds more than expected for safety work commissioned following the Grenfell fire tragedy. In one case, the estimate for recladding a residential block in south-west London has almost doubled in three months.

The work on the council block in Southfields was estimated at £5.5 million when it was commissioned in October, but an update to Wandsworth councillors yesterday warned that “highly volatile market forces” were pushing it closer to £9.9 million. “These works are now well under way with the erection of scaffolding almost complete and removal of cladding having commenced,” said a report to councillors.

“However, recent and highly volatile market forces affecting the provision of materials and labour associated with such recladding works subsequent to the Grenfell fire have resulted in costs substantially increasing.”

A second Wandsworth council block was expected to cost “substantially in excess of the initial estimates” despite being put to tender only last month, leaving the borough facing a bill for both buildings £12 million higher than expected.

London Councils, the umbrella for the capital’s local authorities, said it was “very concerned” that price surges such as those in Wandsworth went higher than the extra costs resulting from Dame Judith Hackitt’s review of building regulations and fire safety.

“In the light of increasing costs in the marketplace, and the initial findings of Dame Judith’s review, we are carrying out further work to create an accurate picture of the costs which boroughs are facing,” it told the Standard. In September, its capital-wide survey found councils faced bills totalling £402 million.

Tooting MP Rosena Allin-Khan, who is also a Wandsworth councillor, accused companies of making “excessive profits” after the Grenfell tragedy. She said: “It is horrific that firms are doubling the price to reclad blocks covered in flammable cladding. They are holding councils to ransom.

“Dozens of people lost their lives in an horrific event because profits were put before people — and now some companies seek to profiteer further. They should honestly be ashamed of themselves.”

The Ministry of Housing said: “Owners are responsible for ensuring properties are safe... we expect them to fund fire safety measures.” Meanwhile, expert Ian Makgill warned public sector bodies also face huge extra bills after the collapse of Carillion.