A housing minister has lost her building safety brief after Grenfell survivors complained about her attendance at a conference sponsored by a firm criticised by an inquiry into the deadly fire.

Rushanara Ali said she understands that “perception matters” and trusted relationships between the government and the Grenfell community are “essential”.

The Grenfell Inquiry’s Phase 2 report, external heavily criticised Celotex for launching a “dishonest scheme to mislead its customers” over the suitability of its insulation for use on high-rise buildings.

In a statement, the Minister for Homelessness and rough sleeping said: “Trusted relationships between ministers and the Grenfell community are essential for this department.

“Before I became a minister, I called for the French delegation of the Franco-British Colloque to cut ties with Saint Gobain. But I understand that perception matters and I have therefore concluded that the building safety portfolio would be best transferred to another minister.

“Our goals of making buildings safe and preventing another tragedy continue to be very important issues for me, and the deputy prime minister and the rest of the ministerial team have my full support in delivering on this work.”