The type of cladding used on London's Grenfell Tower is banned in the UK, the US and Europe, a top-ranking British official admitted on Sunday, questioning whether the panels played a major role in a fatal high-rise fire.

Speaking on BBC television, Chancellor Phillip Hammond said multiple formal inquiries were underway following the June 14 fire at the 24-story residential building, which killed at least 58 people and left dozens more missing.

Video taken by witnesses during the fire shows flames racing up the outside of the building, where the insulating panels were. Investigators say the burning panels may have acted like a chimney, making the fire more intense.

Mr Hammond said investigations would determine why the supposedly banned panels were installed on a residential building, and who was responsible for the decision.