DMFD259 Legal costs related to matters arising out of the Grenfell Tower fire Inquiry

1.1.    The Chair of the Grenfell Tower Inquiry, Sir Martin Moore-Bick, published his final report in September 2024. This related to Phase 2 of the Inquiry, which examined the circumstances leading up to and surrounding the fire. 
1.2.    There has been subsequent work arising out of the Inquiry’s findings and recommendations. There also remains ancillary litigation related to the Grenfell Tower fire. Some of those claims have been settled, and others are ongoing. 
External legal resource
1.3.    It has been necessary for the London Fire Commissioner (LFC) to engage external legal resource to assist the General Counsel’s department in relation to work arising out of the Inquiry’s findings and recommendations, as well as the ancillary litigation. 
1.4.    The nature of the work, and the ancillary litigation, means that it is extremely difficult to accurately predict the cost for legal resource and when that resource will be needed. 
1.5.    This decision is the latest in a series of decisions, published over the past five years, seeking authority to incur costs in respect of legal costs arising from the Grenfell Tower fire. 
1.6.    The commitment of expenditure on legal costs related to the Grenfell Tower fire has previously been approved through Deputy Mayor for Fire and Resilience Decisions DMFD89, DMFD103, DMFD190 and DMFD219.
 

2.1.    The objective of this decision form is to seek authority to incur expenditure in 2025-26. 
2.2.    The expected outcome is that the LFC can properly resource the work arising out of the Grenfell Tower Inquiry’s findings and recommendations, as well as the ancillary litigation. 
 

3.1.    The LFC and the Deputy Mayor for Planning, Regeneration and the Fire Service (Deputy Mayor) are required to comply with the Public Sector Equality Duty (section 149 of the Equality Act 2010) when taking decisions. This, in broad terms, involves understanding the potential impact of policy and decisions on different people; taking this into account; and then evidencing how decisions were reached.
3.2.    It is important to note that consideration of the Public Sector Equality Duty is not a one-off task. The duty must be fulfilled before taking a decision; at the time of taking a decision; and after the decision has been taken.
3.3.    The protected characteristics are: age, disability, gender reassignment, pregnancy and maternity, marriage and civil partnership (but only in respect of the requirements to have due regard to the need to eliminate discrimination), race (ethnic or national origins, colour or nationality), religion or belief (including lack of belief), sex, and sexual orientation.
3.4.    The Public Sector Equality Duty requires decision-takers in the exercise of all their functions, to have due regard to the need to:
•     eliminate discrimination, harassment and victimisation and other conduct prohibited by or under the Equality Act 2010
•    advance equality of opportunity between people who share a relevant protected characteristic and persons who do not share it
•    foster good relations between people who share a relevant protected characteristic and persons who do not share it.
3.5.    Having due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:
•    remove or minimise disadvantages suffered by persons who share a relevant protected characteristic where those disadvantages are connected to that characteristic
•    take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share it
•    encourage persons who share a relevant protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.
3.6.    The steps involved in meeting the needs of disabled persons that are different from the needs of persons who are not disabled include, in particular, steps to take account of disabled persons’ disabilities.
3.7.    Having due regard to the need to foster good relations between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to:
•    tackle prejudice 
•    promote understanding.
3.8.    An Equality Impact Assessment (EIA) was undertaken on 27 July 2020 in relation to the legal costs related to the Grenfell Tower fire  The EIA found that there is likely to be negligible impact on those with protected characteristics in relation to decisions about legal costs. The EIA has been reviewed and the position is unchanged for the purposes of this decision form. This is on the basis that the decision form does not propose anything that will impact on either the public or service users; but seeks authority to incur additional expenditure in respect of legal costs in relation to the LFC’s response to the Inquiry and ancillary litigation.
 

    Workforce comments
4.1.    The Fire Brigades Union was a core participant in the Grenfell Tower Inquiry and had its own legal representation. 
Sustainability comments
4.2.    There are no sustainability implications arising from this report.
Procurement comments
4.3.    There are no procurement implications arising from this report.
Conflicts of interest
4.4.    There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision.
 

5.1.    This report recommends that revenue expenditure of £1,487,956 is agreed for 2025-26, plus a 15 per cent margin, making a total of £1,711,150. This is to secure legal advice and representation for the LFC and appropriate individuals in relation to the Grenfell Tower fire.
5.2.    If this decision is agreed the legal costs incurred, and anticipated, to date are as follows: 
    Table 1 – Grenfell legal costs 2021-26

5.3.    LFC’s annual budget includes an amount of £693,581 for legal costs associated with the Grenfell Tower Inquiry. It is anticipated that the majority of any additional costs incurred over and above the budgeted sum of these costs will be recovered from the insurers. Part 2 of this report provides further information on anticipated expenditure.
5.4.    If it is found that the costs recovered from insurers does not cover all future liabilities, LFC will be required to reduce its expenditure and/or find compensatory savings to meet any funding gap. 
 

6.1.    Section 327A of the Greater London Authority Act 1999 (GLA Act) established the LFC as a corporation sole with the Mayor appointing the occupant of that office. Under section 327D of the GLA Act the Mayor may issue to the LFC specific or general directions as to the manner in which the holder of that office is to exercise his or her functions.
6.2.    By direction dated 1 April 2018, the Mayor set out those matters, for which the LFC would require the prior approval of either the Mayor or the Deputy Mayor.
6.3.    Paragraph (b) of Part 2 of that direction requires the LFC to seek the prior approval of the Deputy Mayor before “[a] commitment to expenditure (capital or revenue) of £150,000 or above as identified in accordance with normal accounting practices”. 
6.4.    The LFC may, under s222 Local Government Act 1972, where it is considered “expedient for the promotion or protection of the interests of the inhabitants of their area … prosecute or defend or appear in any legal proceedings and, in the case of civil proceedings, may institute them in their own name, and … they may, in their own name, make representations in the interests of the inhabitants at any public inquiry held by or on behalf of any Minister or public body under any enactment.”
6.5.    The powers granted by Section 222 of the 1972 Act constitute a function of the LFC and Section 5A (1) of the Fire Rescue and Services Act 2004 (2004 Act) states a relevant fire and rescue authority may do anything it considers appropriate for the carrying out of any of its functions, or anything that it considers appropriate for purposes incidental, whether directly or not, in relation to its functional purposes. This includes incurring spending in furtherance of the powers under Section 222 of the 1972 Act. 
 

Appendix 1: LFC-24-115 – Legal Costs Related to Grenfell Tower Fire – Part One