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Michael Gove, the levelling up secretary, is closing in on a multibillion pound deal with Britain’s biggest housebuilders to help resolve the national cladding crisis exposed by the 2017 Grenfell Tower disaster.

Sky News has learnt that major companies including Barratt Developments and Persimmon are preparing for the imminent signing of a legally binding contract with the government that could ultimately cost the industry £5bn or more.

One executive said they expected the final contract to be signed and unveiled as soon as next week, although they cautioned that the timing remained fluid.

Last year, dozens of developers signed a pledge to fix buildings constructed since the early 1990s, with revisions to the deal with government in recent weeks having focused on the scope of companies’ exposure.

The City watchdog is thought to have been involved in discussions with the industry about whether signing the contract would require the approval of shareholders in listed companies such as Barratt, Persimmon and Taylor Wimpey.

Sources have estimated the cost of the new Residential Property Developers Tax at up to £3bn and the bill for self-remediation at around £2bn.

A further tax on the industry could raise £3bn, industry executives have concluded, leading some companies and investors to warn that the sector risks seeing a flight of capital.

More on Grenfell Tower

Earlier this month, the Department for Levelling Up, Housing and Communities said it was “finalising the legally binding contracts that developers will sign to fix their unsafe buildings, and expect them to do so very soon.

“We will not accept any backsliding on their commitments.

“It is building owners’ legal responsibility to make sure that all buildings are safe.”

Albert House, Woolwich, London, which has cladding that since the Grenfell disaster has been deemed un-safe
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Many buildings across the UK have been deemed to have unsafe cladding since the Grenfell Tower disaster in 2017

FTSE-100 housebuilders have already taken significant financial provisions in their accounts to prepare for the signing of the final government contract.

Some have flagged during recent earnings calls with analysts that they expected an imminent settlement.

“In signing the pledge, we’re saying that we essentially had a commitment that we wanted to sign up to the legal agreement,” David Thomas, Barratt’s chief executive, told analysts this month.

” There’s been a process of discussion regarding the legal agreement that has been ongoing since June last year, so we think we’re getting close to the government publishing the legal agreement, and we would expect in due course that we would sign up to that.”

Read more:
Grenfell inquiry finds shoddy workmanship and unsafe cladding

Homebuilders pledge to pay £5bn towards fire safety costs

Hanan says she still thinks of the tower as home
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The cladding on Grenfell Tower was found to have caused the fire to spread so quickly

A spokesman for the Home Builders Federation (HBF) said: “The pledge [signed last year] demonstrated the industry’s commitment to play its part in ensuring leaseholders don’t pay for work needed to make buildings safe.

“We have been working constructively with government to ensure the detailed contract reflects the commitments of the pledge and we await a final version.

“UK housebuilders are taking responsibility and are well progressed with remediating their own buildings and are already paying another £3bn to fund work on buildings built by foreign companies and others.

“Government now needs to deliver on commitments to secure contributions from foreign builders and the material providers at the heart of this issue and avoid targeting UK housebuilders further for buildings built by others”.

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Online pricing crackdown targets over 100 firms operating in the UK

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Online pricing crackdown targets over 100 firms operating in the UK

A crackdown on online pricing has seen investigations opened into eight companies, with a further 100 facing warnings over their conduct.

The competition watchdog said it was formally examining practices at StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct and Marks Electrical.

The Competition and Markets Authority (CMA) said the 100 other companies, which it did not identify, were getting letters outlining concerns about additional fees and sales tactics.

Money latest: Nationwide ‘lost my £70k’

The action against StubHub and viagogo – part of the same company after a 2021 merger – was revealed as the government reportedly prepares to separately confirm a ban on the resale of tickets for live events above their face value.

It is part of a long-threatened crackdown on touts to shield consumers from rip-off prices.

The regulator’s separate action falls under the new Digital Markets, Competition and Consumers Act which gives it additional powers to protect consumers.

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The CMA said StubHub and viagogo were under review “regarding the mandatory additional charges applied when consumers buy tickets – and whether or not these fees are included upfront”.

The AA Driving School and BSM Driving School were being investigated over their “presentation of mandatory fees on these sites”, the CMA said, “specifically, whether these fees are included in the total price the consumer sees at the beginning of the purchase process.”

Gold’s Gym is under investigation over its presentation of a one-off joining fee for its annual membership, and whether the way it presents this fee breaks the law.

It explained that the examination of homeware retailers Wayfair, Appliances Direct, and Marks Electrical was related to whether their time-limited sales “ended when they said they would, or whether customers are being automatically opted in to purchasing additional services”.

Commenting on the CMA’s action an AA Driving School spokesperson said: “We are comfortable that the £3 booking fee for lessons is already transparent and in line with the CMA’s rules and are more than happy to additionally notify customers earlier in the journey as well, which we have already done.”

The other companies were yet to comment.

The CMA’s first major act under the new digital market rules was to give itself special oversight over Apple and Google.

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‘Organised crime’ behind ticket fraud

The CMA’s so-called “strategic market status” rulings mean both companies will face specific obligations to limit their dominance in smartphone and tablet operating systems (iOS and Android respectively), app distribution and browsers.

Commenting on its latest inquiry, CMA chief executive Sarah Cardell said: “At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine.

“Whether you’re spending your hard-earned cash on concert tickets or driving lessons, joining a gym or buying furniture and appliances for your home, you deserve a fair deal.

“It’s our job to protect consumers from misleading prices and illegal pressure selling and today marks an important milestone as we take action across the economy to make sure businesses do the right thing by their customers.”

“Since the launch of the new regime, we’ve been working hard to help businesses understand the law. But alongside supporting businesses to comply, we’ve always been clear that we will take swift action where we suspect potentially serious breaches of the law.

“This is just the start of our work. Any businesses who break consumer law should be in no doubt we will stamp out illegal conduct and protect the interests of consumers and fair-dealing businesses.”

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Birmingham bin strikes to continue for months, union warns, as industrial dispute deepens

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Birmingham bin strikes to continue for months, union warns, as industrial dispute deepens

Rubbish will continue rotting in the streets of Birmingham for months, union chiefs have warned, after more workers voted to join industrial action.

Agency workers employed by Job&Talent are now joining the dispute for the first time, with the Unite union blaming “an epidemic of bullying, harassment and intimidation”.

And with workers voting to extend the already months-long strike, the union says bins could go uncollected beyond next year’s local elections in May.

Former Labour leader Jeremy Corbyn (centre left) on the picket line in Tyseley, Birmingham, to support striking bin workers. Pic: PA
Image:
Former Labour leader Jeremy Corbyn (centre left) on the picket line in Tyseley, Birmingham, to support striking bin workers. Pic: PA

It comes after footage obtained by Sky News captured a manager from Job&Talent warning agency staff that those who join the strike would be blacklisted by the council.

In the clip, he says: “Those people that do decide to join the picket line, then the council have confirmed to us that they are not going to get a permanent job.”

Unite general secretary Sharon Graham added: “This is a real escalation in the dispute with agency workers now joining picket lines due to the terrible way they have been treated by Job&Talent and Birmingham council.

“The council is spending a fortune it doesn’t have on a dispute that could easily be resolved by agreeing a fair deal for workers.

More on Birmingham

“Unite does what it says on the trade union tin; we are totally committed to fighting for the jobs, pay and conditions of all members.

“Agency and directly-employed workers alike in Birmingham council’s refuse service have the union’s complete and utter support.”

Striking refuse workers outside Perry Barr depot in Birmingham. Pic: PA
Image:
Striking refuse workers outside Perry Barr depot in Birmingham. Pic: PA

A spokesperson for Birmingham City Council said: “While we are disappointed the dispute has not been resolved as Unite has rejected all our offers, we are continuing to make regular waste collections and our contingency plan is working.

“We have been collecting an average of approximately 1,330 tonnes of kerbside waste every day, more than we did prior to industrial action, and over the last six months we have collected over 100,000 tonnes of kerbside waste.

“There has been a 22 per cent increase in tonnage of waste collected per employee and a 52 per cent improvement regarding missed collections.

“A small number of agency staff are in a separate dispute with Job&Talent. The city council has contingency plans and will continue to look to maintain residents with a minimum of one collection a week.

“Meanwhile we continue to move forward with the service improvements that are long overdue and that our residents need.”

Uncollected refuse bags in the Aston area of Birmingham. Pic: PA
Image:
Uncollected refuse bags in the Aston area of Birmingham. Pic: PA

The council also said it would not tolerate blacklisting, and had investigated the matter, but concluded no blacklisting had taken place.

In a statement last week, Job&Talent responded to the leaked footage.

Read more:
No end in sight for bin strike after six months
Birmingham bin strikes: How residents are taking action

The statement read: “Job&Talent is aware of a short video clip circulating online which shows a Job&Talent manager speaking to agency workers at one of the city’s refuse depots.

“The comments made in the recording were part of a longer discussion and do not reflect the position of Job&Talent.

“We do not engage in or condone any form of blacklisting, and no worker is or would be denied employment opportunities on the basis of lawful participation in industrial action.”

Unite said Job&Talent workers would be able to join the picket line from 1 December.

Bin workers have been locked in a standoff with the council over proposed pay cuts for most of the year.

Union bosses say council plans will leave 171 workers £8,000 worse off a year.

Collections have been disrupted since January, but the row descended into an all-out strike in March.

Uncollected refuse bags in the Sparkhill area of Birmingham. Pic: PA
Image:
Uncollected refuse bags in the Sparkhill area of Birmingham. Pic: PA

The council soon declared a major incident and rubbish has continued to pile up across the city as the dispute continues.

Unite claims there have been no formal negotiations over ending the dispute since May.

The union’s lead officer, Onay Kasab, said: “Residents of Birmingham will be rightly concerned to see that the misery of bin strikes can continue through Christmas, New Year and beyond May’s local elections but the council is solely responsible for the ongoing dispute.

“Unite remains fully committed to return to meaningful negotiations to secure a fair deal for affected workers while also ensuring the endemic bullying culture and threats of blacklisting are stamped out.”

In a statement, Job&Talent said: “We acknowledge the ballot outcome and will continue working closely with our workers to address any concerns.

“The result reflects only a small portion of our overall workforce.

“As addressed previously, Job&Talent remains firmly committed to operating with transparency, integrity, and full compliance with employment laws.”

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New homes earmarked near train stations to get ‘default yes’ from planners

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New homes earmarked near train stations to get 'default yes' from planners

The government has announced plans to make it almost impossible for new housing developments near train stations to be opposed.

Changes to planning rules being announced by the government today will make it easier to build on sites within 15 minutes’ walk of “well-connected” stations, including on green belt land.

It will amount to developments near stations getting a “default yes”.

Housing Secretary Steve Reed – who will appear on Sky News’ Mornings With Ridge And Frost at 7.15am – will also get “stronger powers” to deal with councils that “drag their feet” on approving new homes.

“I promised we’d get Britain building and that’s exactly what we are doing,” he said ahead of the announcements.

“But it has to be the right homes in the right places and nearby transport links are a vital part of that.”

Housing Secretary Steve Reed, who took the job over from Angela Rayner. Pic: PA
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Housing Secretary Steve Reed, who took the job over from Angela Rayner. Pic: PA

Under Mr Reed’s proposals, councils that intend to refuse planning permission to developments with more than 150 homes will have to inform the government, giving ministers the final say.

Some organisations that are legally required to be consulted on planning applications could also be removed from the list, including Sport England and The Gardens Trust.

Read more from Sky News:
Planning reforms to ‘rewire the system’
Is this Labour’s most important piece of legislation?

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Sadiq Khan challenged on housebuilding crisis

The changes involve amending the National Planning Policy Framework.

The Conservatives accused the government of trying to “railroad through unpopular developments”, as it tries to hit its ambitious target of building 1.5 million homes by the next election.

According to the most recent figures, only 231,000 were built between last year’s election and September 2025.

Watch and follow Mr Reed’s interview on Mornings With Ridge And Frost across Sky News and in the Politics Hub.

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