Overview

This Fire Safety Bill amendment focuses on preventing building owners from passing on the costs of fire safety remediation work to leaseholders and tenants. The amendment's final form mandates the government to publish draft legislation within 90 days to address this issue and a progress statement within 120 days, rather than immediately prohibiting the cost transfer.

Description

The bill initially proposed a complete ban on passing remediation costs to leaseholders and tenants, except for those who also own part or all of the freehold. However, the Commons repeatedly disagreed with this approach, citing complexity. The Lords eventually conceded and agreed to an amended version which requires the Secretary of State to publish draft legislation within 90 days of the act's passing to address the issue of leaseholders and tenants having to pay for remedial work. A further progress statement is required within 120 days. This temporary measure aims to prevent cost shifting until a permanent statutory scheme is put in place.

Government Spending

The bill itself does not directly allocate funding. However, the implied future legislation to create a statutory scheme to cover remediation costs will likely have significant implications for government spending, the exact amount of which remains undefined at this stage.

Groups Affected

• Leaseholders: Potentially affected by having to bear remediation costs before a permanent solution is found, this is now mitigated as a solution is being put in place.
• Tenants: Potentially affected by having to bear remediation costs before a permanent solution is found. This is now mitigated as a solution is being put in place.
• Building Owners: Potentially impacted by bearing the full cost of remediation until a permanent legislative scheme is established.
• Government: Will likely face significant financial implications when they implement a permanent solution.

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