The housing secretary Robert Jenrick has told contractor Rydon not to bid for any more public work until the outcome of the Grenfell Tower Inquiry is known.
Rydon was the main contractor responsible for the refurbishment of Grenfell Tower, which was undertaken between 2014 and 2016.
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Rydon is among several firms involved in the Grenfell Tower Inquiry and its role in the refurbishment of the building is expected to come under particular scrutiny in the second phase of the process, set to start in January next year.
The government was under fire from survivors of the disaster after the Sussex-based firm was named among 12 firms on framework for works on high-rise residential buildings in the south of England.
Initially the Cabinet Office said only companies convicted of an offence could be excluded from bidding on work and that it could not exclude Rydon from the framework under European Union regulations.
But Jenrick has announced that he was reversing that position.
In a tweet, he said: “I understand why survivors and bereaved do not want to see public contracts awarded to the main contractor for the Grenfell Tower refurb until we have the full results of the inquiry.
“The contractor should not bid for further work until we know the truth.”
Rydon has been contacted for comment.