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The government was “well aware” of the deadly risks posed by combustible cladding and insulation a year before the Grenfell Tower fire, but “failed to act on what it knew”, a landmark report has found.

The report also said “systemic dishonesty” from cladding and insulation companies and a “toxic” relationship between the tower’s residents and the Tenant Management Organisation (TMO), which was responsible for running services, were contributing factors.

More than seven years on from the fire that claimed 72 lives, Grenfell Inquiry chair Sir Martin Moore-Bick has published his final findings into how the building in west London came to be in such a deadly state.

Pic: PA
Image:
Pic: PA

Sir Martin also concluded:

• Government officials were “complacent, defensive and dismissive” on fire safety, while cutting red tape was prioritised

• There was an “inappropriate relationship” between approved inspectors and those they were inspecting

• Grenfell residents who raised safety concerns were dismissed as “militant troublemakers”

A huge fire engulfs the 24 story Grenfell Tower in Latimer Road, West London
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Flames engulfed the 24-storey tower block in Latimer Road, west London, on 14 June 2017

The report details what it calls a “path to disaster” and “decades of failure”.

It asked: “How was it possible in 21st century London for a reinforced concrete building, itself structurally impervious to fire, to be turned into a death trap?”

“There is no simple answer to that question.”

Sir Martin’s report runs to nearly 1,700 pages, and encompasses years of work and the testimony of hundreds of witnesses.

It contains 58 recommendations to ensure a similar disaster never happens again.

Firefighters continue to dampen down the tower block following the deadly blaze
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Hundreds of firefighters tackled the blaze. Pic: PA

Firefighters rest as they take a break in battling a massive fire that raged in a 27-floor high-rise apartment building in London, Wednesday, June 14, 2017. Fire swept through a high-rise apartment building in west London early Wednesday, killing an unknown number of people and sending more than 50 people to area hospitals. (AP Photo/Matt Dunham)
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Crews tackled the fire in shifts – resting at the scene. Pic: AP

Complacency in government

The first phase of the inquiry’s report found in 2019 that combustible cladding was the primary cause of the rapid spread of the fire.

The inquiry has now concluded that the tragedy was the culmination of those in charge failing for decades to properly consider the risks of combustible materials on high-rise buildings, while ignoring the mounting evidence before them.

Grenfell tower
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The building was covered in combustible products. Pic: Reuters

Read more:
The Grenfell children who survived the blaze
Grenfell victims likely to wait over a decade for justice

Successive governments missed opportunities to prevent the tragedy.

The deadly risks of combustible cladding panels and insulation had been identified as early as 1991, when a fire engulfed the Knowsley Heights tower block in Huyton, Merseyside.

The block had recently been covered in “rainscreen” cladding.

Six people were killed at Lakanal House in Camberwell, south London, in 2009 after a fire spread to combustible cladding.

“By 2016 the department [for communities and local government] was well aware of those risks, but failed to act on what it knew,” the report states.

It adds that by the time Grenfell Tower was being renovated in the 2010s, a “seriously defective” system was in place to regulate the construction and refurbishment of high-rise buildings.

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‘We want changes and justice’

Unsafe products kept on market and dangers ‘deliberately concealed’

The report condemns cladding and insulation firms involved in this work, saying they engaged in “deliberate and sustained strategies to manipulate the testing processes, misrepresent test data and mislead the market”.

It said that “systemic dishonesty” from the companies resulted in hazardous materials being applied to the block.

Arconic, the company that made cladding for Grenfell Tower, “deliberately concealed” the danger of the panels used on the tower, while Celotex, which supplied most of the insulation, similarly “embarked on a dishonest scheme to mislead customers”.

Kingspan knew its insulation product failed fire safety tests “disastrously” but continued to sell it to high-rise buildings, the report found.

The firms got away with this because the various bodies designed to oversee and certify their products repeatedly failed to monitor and supervise them.

Grenfell residents dismissed as ‘troublemakers’

There was also harsh criticism of the Tenant Management Organisation (TMO), which was responsible for running services at Grenfell Tower.

Residents who raised concerns about safety were dismissed as “militant troublemakers”, while there was “a toxic atmosphere” with the TMO “fuelled by mistrust of both sides”.

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Relations “were increasingly characterised by distrust, dislike, personal antagonism and anger” and “some, perhaps many, occupants of the tower regarded the TMO as an uncaring and bullying overlord that belittled and marginalised them”.

The TMO and the Royal Borough of Kensington and Chelsea were jointly responsible for managing fire safety at Grenfell Tower – but the years between 2009 and 2017 were marked by a “persistent indifference to fire safety”, the report said.

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‘I realised the burning building was my own home’

Next steps

The Counsel for the inquiry has accused parties involved in the disaster of a “merry-go-round of buck-passing” – largely blaming each other for the disaster.

The inquiry can’t make findings of civil and criminal liability.

Now its work is complete, the police investigation into the disaster will continue.

The UK Tonight With Sarah-Jane Mee will have a special programme on the Grenfell Tower report at 8pm on Sky News

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Lloyds Banking Group in talks to buy digital wallet provider Curve

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Lloyds Banking Group in talks to buy digital wallet provider Curve

Britain’s biggest high street bank is in talks to buy Curve, the digital wallet provider, amid growing regulatory pressure on Apple to open its payment services to rivals.

Sky News has learnt that Lloyds Banking Group is in advanced discussions to acquire Curve for a price believed to be up to £120m.

City sources said this weekend that if the negotiations were successfully concluded, a deal could be announced by the end of September.

Curve was founded by Shachar Bialick, a former Israeli special forces soldier, in 2016.

Three years later, he told an interviewer: “In 10 years time we are going to be IPOed [listed on the public equity markets]… and hopefully worth around $50bn to $60bn.”

One insider said this weekend that Curve was being advised by KBW, part of the investment bank Stifel, on the discussions with Lloyds.

If a mooted price range of £100m-£120m turns out to be accurate, that would represent a lower valuation than the £133m Curve raised in its Series C funding round, which concluded in 2023.

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That round included backing from Britannia, IDC Ventures, Cercano Management – the venture arm of Microsoft co-founder Paul Allen’s estate – and Outward VC.

It was also reported to have raised more than £40m last year, while reducing employee numbers and suspending its US expansion.

In total, the company has raised more than £200m in equity since it was founded.

Curve has been positioned as a rival to Apple Pay in recent years, having initially launched as an app enabling consumers to combine their debit and credit cards in a single wallet.

One source close to the prospective deal said that Lloyds had identified Curve as a strategically attractive bid target as it pushes deeper into payments infrastructure under chief executive Charlie Nunn.

Lloyds is also said to believe that Curve would be a financially rational asset to own because of the fees Apple charges consumers to use its Apple Pay service.

In March, the Financial Conduct Authority and Payment Systems Regulator began working with the Competition and Markets Authority to examine the implications of the growth of digital wallets owned by Apple and Google.

Lloyds owns stakes in a number of fintechs, including the banking-as-a-service platform ThoughtMachine, but has set expanding its tech capabilities as a key strategic objective.

The group employs more than 70,000 people and operates more than 750 branches across Britain.

Curve is chaired by Lord Fink, the former Man Group chief executive who has become a prolific investor in British technology start-ups.

When he was appointed to the role in January, he said: “Working alongside Curve as an investor, I have had a ringside seat to the company’s unassailable and well-earned rise.

“Beginning as a card which combines all your cards into one, to the all-encompassing digital wallet it has evolved into, Curve offers a transformative financial management experience to its users.

“I am proud to have been part of the journey so far, and welcome the chance to support the company through its next, very significant period of growth.”

IDC Ventures, one of the investors in Curve’s Series C funding round, said at the time of its last major fundraising: “Thanks to their unique technology…they have the capability to intercept the transaction and supercharge the customer experience, with its Double Dip Rewards, [and] eliminating nasty hidden fees.

“And they do it seamlessly, without any need for the customer to change the cards they pay with.”

News of the talks between Lloyds and Curve comes days before Rachel Reeves, the chancellor, is expected to outline plans to bolster Britain’s fintech sector by endorsing a concierge service to match start-ups with investors.

Lord Fink declined to comment when contacted by Sky News on Saturday morning, while Curve did not respond to an enquiry sent by email.

Lloyds also declined to comment, while Stifel KBW could not be reached for comment.

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UK economy figures not as bad as they look despite GDP fall, analysts say

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UK economy figures not as bad as they look despite GDP fall, analysts say

The UK economy unexpectedly shrank in May, even after the worst of Donald Trump’s tariffs were paused, official figures showed.

A standard measure of economic growth, gross domestic product (GDP), contracted 0.1% in May, according to the Office for National Statistics (ONS).

Rather than a fall being anticipated, growth of 0.1% was forecast by economists polled by Reuters as big falls in production and construction were seen.

It followed a 0.3% contraction in April, when Mr Trump announced his country-specific tariffs and sparked a global trade war.

A 90-day pause on these import taxes, which has been extended, allowed more normality to resume.

This was borne out by other figures released by the ONS on Friday.

Exports to the United States rose £300m but “remained relatively low” following a “substantial decrease” in April, the data said.

More on Inflation

Overall, there was a “large rise in goods imports and a fall in goods exports”.

A ‘disappointing’ but mixed picture

It’s “disappointing” news, Chancellor Rachel Reeves said. She and the government as a whole have repeatedly said growing the economy was their number one priority.

“I am determined to kickstart economic growth and deliver on that promise”, she added.

But the picture was not all bad.

Growth recorded in March was revised upwards, further indicating that companies invested to prepare for tariffs. Rather than GDP of 0.2%, the ONS said on Friday the figure was actually 0.4%.

It showed businesses moved forward activity to be ready for the extra taxes. Businesses were hit with higher employer national insurance contributions in April.

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The expansion in March means the economy still grew when the three months are looked at together.

While an interest rate cut in August had already been expected, investors upped their bets of a 0.25 percentage point fall in the Bank of England’s base interest rate.

Such a cut would bring down the rate to 4% and make borrowing cheaper.

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Is Britain going bankrupt?

Analysts from economic research firm Pantheon Macro said the data was not as bad as it looked.

“The size of the manufacturing drop looks erratic to us and should partly unwind… There are signs that GDP growth can rebound in June”, said Pantheon’s chief UK economist, Rob Wood.

Why did the economy shrink?

The drops in manufacturing came mostly due to slowed car-making, less oil and gas extraction and the pharmaceutical industry.

The fall was not larger because the services industry – the largest part of the economy – expanded, with law firms and computer programmers having a good month.

It made up for a “very weak” month for retailers, the ONS said.

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UK economy remains fragile – and there are risks and traps lurking around the corner

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UK economy remains fragile - and there are risks and traps lurking around the corner

Monthly Gross Domestic Product (GDP) figures are volatile and, on their own, don’t tell us much.

However, the picture emerging a year since the election of the Labour government is not hugely comforting.

This is a government that promised to turbocharge economic growth, the key to improving livelihoods and the public finances. Instead, the economy is mainly flatlining.

Output shrank in May by 0.1%. That followed a 0.3% drop in April.

Ministers were celebrating a few months ago as data showed the economy grew by 0.7% in the first quarter.

Hangover from artificial growth

However, the subsequent data has shown us that much of that growth was artificial, with businesses racing to get orders out of the door to beat the possible introduction of tariffs. Property transactions were also brought forward to beat stamp duty changes.

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In April, we experienced the hangover as orders and industrial output dropped. Services also struggled as demand for legal and conveyancing services dropped after the stamp duty changes.

Many of those distortions have now been smoothed out, but the manufacturing sector still struggled in May.

Signs of recovery

Manufacturing output fell by 1% in May, but more up-to-date data suggests the sector is recovering.

“We expect both cars and pharma output to improve as the UK-US trade deal comes into force and the volatility unwinds,” economists at Pantheon Macroeconomics said.

Meanwhile, the services sector eked out growth of 0.1%.

A 2.7% month-to-month fall in retail sales suppressed growth in the sector, but that should improve with hot weather likely to boost demand at restaurants and pubs.

Struggles ahead

It is unlikely, however, to massively shift the dial for the economy, the kind of shift the Labour government has promised and needs in order to give it some breathing room against its fiscal rules.

The economy remains fragile, and there are risks and traps lurking around the corner.

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Is Britain going bankrupt?

Concerns that the chancellor, Rachel Reeves, is considering tax hikes could weigh on consumer confidence, at a time when businesses are already scaling back hiring because of national insurance tax hikes.

Inflation is also expected to climb in the second half of the year, further weighing on consumers and businesses.

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