The Government should have the power to seize control of flat blocks where owners are failing to make them safe following the Grenfell Tower tragedy, MPs have heard.

Such a scheme would enable remedial works to take place and for the Government to seek to recover the costs, according to Labour’s Barry Gardiner.

The MP for Brent West added the Government would then be able to acquire and sell the building should it be unable to recover the costs from the owner.

Prime Minister Sir Keir Starmer said the Government would look at what “further powers may be necessary” in response to the near-1,700 page final report of the inquiry into the 2017 Grenfell Tower fire, which killed 72 people.

The report found the fire at the west London tower block was the result of “decades of failure” by government and the construction industry to act on the dangers of flammable materials on high-rise buildings.

The Government last month said 4,630 buildings have been identified with flammable cladding, and remediation has started on more than 50% of them.

Speaking in the House of Commons, Liberal Democrat deputy leader Daisy Cooper said in some cases the “waterfall” system established to identify who is responsible for remediation works is “simply not working and is taking far too long”.

Ms Cooper said: “One idea that was on the table in the last parliament was that in some cases the government could put the money up to pay for the remediation to take away the risk and then use the power of the state and its lawyers to go after those responsible with penalties so that the taxpayer would not lose out.”

Ms Cooper asked Sir Keir to “review this idea” and see if it could be used in “some limited cases where there has been no action”.

Sir Keir highlighted a case in his Holborn and St Pancras constituency where a contract “went through seven sub-contractors” before the responsible person was found.

He added: “That’s a real problem and we do have to get to the bottom of that, we can’t allow that to happen.

“Of course we’ll consider any proposals that are put forward in response to this report but this is a very real problem of contracts simply being sub-contracted over and over again and trying to find accountability in that is very, very difficult.”

Mr Gardiner followed up the concerns by saying: “Many of the owners of these blocks have sold on to further owners and further owners beyond that. The Prime Minister referred to the sub-contracting but there’s also been on-selling.

“Some of those owners are now living in tax havens, the British Virgin Islands and others, and they are simply not complying, they’re not even applying for the Building Safety Fund to get this remediation work done.

“So will he consider very carefully what powers the Government can take in order to take control of these buildings, get the work done and then recover the costs, if necessary, by acquiring and selling the building themselves?”

Sir Keir, in his reply, said: “One of the things we need to do is look at what further powers may be necessary.

“I don’t think that we can suggest for a minute that the existing legislation, guidance and policy is already there and sufficient – we need more powers and we will be looking at that and bringing proposals back to the House.”

Labour MP Joe Powell earlier said deaths at Grenfell Tower in his Kensington and Bayswater constituency were the result of individuals and organisations that were “systematically dishonest and put profit before people’s lives”.

He said: “Can (the Prime Minister) commit to ensuring that companies identified in this report will be excluded from public contracts, held account to the full extent of the law and pay their full weight of financial remediation for the building safety remedial work that is needed?”

Sir Keir replied: “I can confirm that we will do everything to make sure there is full accountability, including criminal accountability where appropriate.”

Conservative former housing secretary Robert Jenrick said Grenfell was a “comprehensive failure by the British state”, adding: “In many respects that comprehensive failure persists today.”

He said he “fully supports” the Prime Minister’s work to assess whether further regulatory changes are required, adding: “They need to be done in a proportionate and effective way.”

Dawn Butler, Labour MP for Brent East, said: “Everybody there at Grenfell wants people to be held responsible – those in boots, but also those in suits.

“There’s a lot of money that has also gone missing and some have called for the use of joint enterprise to ensure everybody is held responsible.”

Labour MP Florence Eshalomi (Vauxhall and Camberwell Green) said: “Grenfell laid bare the sad truth around the stigma attached to social housing.”

Sir Keir said there has to be a “change in culture and behaviour”, adding: “Turning a corner needs to mean something more than passing a new law or putting in place new guidance, much needed though that is.”