DMFD285 Legal costs related to the Grenfell Tower fire

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.    The legal work relating to representation at the Grenfell Tower Inquiry is complete. There 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 ancillary litigation. 

1.4.    The nature of the ancillary litigation means it is extremely difficult to accurately predict the totals for each legal resource, and when that resource will be needed. 

1.5.    This decision is the latest in a series of Deputy Mayor for Fire and Resilience Decisions (DMFDs): published over the past six years, concerning authority to commit expenditure on legal costs related to the Grenfell Tower fire:

•    DMFD259 Legal costs related to matters arising out of the Grenfell Tower fire Inquiry
•    DMFD219 Grenfell Legal Costs 
•    DMFD190 Legal Costs Related to the Grenfell Tower Fire
•    DMFD103 Legal Costs Related to the Grenfell Tower Fire 
•    DMFD89 Legal Costs Related to the Grenfell Tower Fire
 

2.1.    The objective of this decision is to seek authority to incur expenditure in 2026-27. 

2.2.    The expected outcome is that the LFC can properly resource the work related to the Grenfell Tower fire ancillary litigation. 
 

3.1.    The LFC, and the Deputy Mayor for Planning, Regeneration and the Fire Service, are required to have due regard to the Public Sector Equality Duty (section 149 of the Equality Act 2010) when taking decisions. The Public Sector Equality Duty requires the identification and evaluation of the likely potential impacts, both positive and negative, of the decision on those with protected characteristics (see paragraph 3.4). 

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 prohibited conduct
•    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.    LFB completed an Equality Impact Assessment (EIA) in 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. The EIA has been reviewed, and the position is unchanged in this report. This is on the basis that this report does not propose any change that will impact on either the public or service users; but simply seeks authority to incur additional spend in respect of legal costs in relation to the LFC’s response to the Inquiry and ancillary litigation. This EIA is attached at Appendix 2.
 

4.1.    LFC-25-096 does not record any workforce, sustainability, procurement or communications considerations arising from the report. 

Conflicts of interest

4.2.    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 £219,650 is agreed for 2026-27, comprising gross expenditure of £191,000 plus a 15 per cent margin. 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 are, to date, as follows: 

5.3.    London Fire Brigade (LFB) reports that various elements of the requested expenditure can be recovered from their insurers. LFB considers that £28,750 out of £219,650 should be recoverable, leaving a net cost, chargeable to the LFC, of £190,900.

5.4.    LFB reports that, of the net cost of £190,900:

•    £80,500 of eligible costs will be funded by the LFC’s annual Grenfell legal costs revenue base budget
•    £110,400 will be funded from the Fire Safety Improvement reserve, an earmarked reserve for limited Grenfell Tower fire-related activity. 

6.1.    Under section 9 of the Policing and Crime Act 2017, the LFC is established as a corporation sole with the Mayor appointing the occupant of that office. Under section 327D of the GLA Act 1999, as amended by the Policing and Crime Act 2017, the Mayor may issue to the Commissioner 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”. Although a number of the individual items in the table attached to the Part 2 decision do not fall within the category of matters for which prior approval must be sought (because they are contracts and arrangements already entered into, or individually fall below the £150,000 threshold), it is considered prudent to provide details of the costs, insurance reimbursement and an overall financial picture, in addition to the reporting through the ordinary budget mechanisms, to seek prior approval of the Deputy Mayor for the avoidance of doubt. 

6.4.    The LFC may, under section 222 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.    It is implicit in the above that the LFC may authorise spending and the instruction of outside experts. Notwithstanding this, 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. 

6.6.    The participation by, and representation of, the LFC in the Grenfell Tower Inquiry, and associated inquiries and subsequent legal matters, falls within Section 222 of the 1972 Act and Section 5A(1) of the 2004 Act.