Grenfell firms still receiving multimillion-pound public contracts, analysis finds | Grenfell Tower fire

Survivors of the Grenfell Tower fire have called on the government to stop companies involved in the disaster from receiving public tenders after it was revealed some were still receiving multimillion-pound contracts.

New analysis has found that at least 87 contracts across the public sector in the government’s own database involve companies criticized in the phase 2 report into the Grenfell fire published in September 2024, although some contracts may have expired since then.

Labor MP Joe Powell, who produced the analysis, said: “Grenfell is bereaved, survivors and our community are still fighting for justice eight and a half years after this entirely preventable tragedy, and it is extraordinary that public money continues to be spent on companies named in the public inquiry.”

He said the government should urgently audit the remaining public contracts with companies and at least provide guidance under the 2023 Procurement Act that suppliers should not be used due to past abuses.

On 14 June 2017, 72 people died and more than 70 were injured in a fire at a skyscraper in west London. This was the worst house fire in Britain since the Blitz of the Second World War.

At the time the report was being prepared, Keir Starmer said he would bar the companies involved from any public tenders. However, the government later reversed plans for blanket exclusion, citing advice from the Crown Prosecution Service that this action could harm criminal investigations.

Powell said: “I would urge all public bodies to fully audit their contracts, including subcontractors and supply chains, and publish their findings in full. It is good news that the government has introduced new powers to exclude companies on grounds such as professional misconduct, and now is the time for procurement offices to start using them.”

The main survivors’ group, Grenfell United, said it would be deeply unfair to see some companies censured in the report still receiving public funds. “While a criminal investigation limits official sanctions, nothing prevents the government from taking a clear moral stance,” the group said in a statement.

“The Procurement Act already allows authorities to take integrity and risk into account, so there is no excuse for inaction. At the very least, guidance should ensure that companies criticized for serious misconduct face the highest scrutiny before more public money is spent.”

“Seeing the same companies carrying on as if nothing happened is a painful reminder of the lack of consequences. Justice has been delayed; it should not be denied. Public institutions must protect people and ensure there is no repeat of Grenfell.”

Two major companies linked to the disaster – Saint-Gobain and Rydon Maintenance – appear in the public tenders database with contracts worth millions in the public sector.

Rydon, the main contractor for the refurbishment, was heavily criticized. The investigation concluded that the company “did not pay sufficient attention to fire safety” and failed to ensure subcontractors and consultants fully understood their responsibilities.

It turns out that Rydon’s team was inexperienced and relied on subcontractors to highlight mistakes.

But the company is also involved in numerous public contracts, including facilities management services for NHS trusts worth millions. Approved contracts include £6.6 million with Oxleas NHS foundation trust and £4.3 million with Avon and Wiltshire mental health partnerships NHS trust. The trusts did not respond to requests for comment.

In total, the database showed 14 contracts with Rydon worth more than £5.5 billion with no end date specified; However, some of the contracts may have expired. Rydon did not respond to requests for comment.

Powell wrote to relevant NHS trusts and Scottish Water asking them to review their contracts. In a letter to NHS North West London chief executive Penny Dash, Powell said the trust should review its contract with Rydon.

“While we await the conclusion of the criminal justice process, it is of great importance that the companies named in the investigation do not benefit from any public funds,” he wrote.

It was revealed that Celotex, another company then owned by Saint-Gobain, marketed its RS5000 insulation as safe for use in high-rise buildings, despite knowing it was flammable, and was used in 95% of the insulation in the tower. The company said it was designed to be used with fireproof coating.

During the investigation, a former Celotex employee testified that they were “lied to for commercial gain” and described the company’s actions as “completely unethical”.

Procurement data shows Saint-Gobain continues to maintain a £17.6 million contract with Scottish Water that runs until 2029. It is no longer the parent company of Celotex, but was at the time of the fire. Scottish Water declined to comment.

A spokesperson for Saint-Gobain Building Products UK said it “covers a wide range of businesses, including Saint-Gobain PAM, a manufacturer of high-performance ductile iron pipes for infrastructure and water projects”.

“These businesses had no connection with the regeneration of Grenfell Tower or Celotex Limited, which has not traded since December 2015. They were not referenced during the investigation or subsequent government announcements, and their integrity was not questioned.

“Saint-Gobain businesses have been manufacturing in the UK since 1846. They are a critical supply chain partner on numerous construction and infrastructure projects in the UK, valued employers and contributors to the economic areas and local communities in which they operate.”

The Procurement Act 2023 gives local authorities, NHS bodies and other public bodies the power to exclude suppliers because of poor past performance, including health and safety, labor or environmental law breaches or professional misconduct.

Powell said the powers should be used more proactively to protect public safety and public funds, rather than relying on voluntary warnings from contracting authorities.

The Cabinet Office is understood to believe there is no legal basis for using the law to issue guidance to suppliers. A government spokesman said: “We will never forget the 72 lives lost at Grenfell. “While the public sector is responsible for its own procurement decisions, the government has written to all organizations named in Sir Martin Moore-Bick’s report and launched an investigation into seven people.

“These have been discontinued to prevent inadvertent harm to criminal proceedings, but this does not prevent us from restarting them or initiating new investigations where appropriate in the future.”