Cladding used on Grenfell Tower which has been blamed for spreading the blaze is banned in Britain, Philip Hammond has said.
The Chancellor said a criminal investigation would examine whether building regulations had been breached when the block was overhauled just last year.
Mr Hammond said the public inquiry set up by the Government following the tragedy would also examine if rules had been broken.
He told BBC One's Andrew Marr Show: "My understanding is the cladding in question, this flammable cladding which is banned in Europe and the US, is also banned here.
"So there are two separate questions. One, are our regulations correct, do they permit the right kind of materials and ban the wrong kind of materials? The second question is were they correctly complied with?
"That will be a subject that the inquiry will look at. It will also be a subject that the criminal investigation will be looking at."
Grenfell Tower, in North Kensington, was refurbished in 2016 costing £10 million by Rydon Construction, for Kensington and Chelsea Tenant Management Organisation (KCTMO) on behalf of Kensington and Chelsea Council.
The exterior of the 1973-built tower was modernised with cladding and replacement windows, while additional homes were added using vacant space in the building.
Experts have now spoken of the potential dangers of tower block cladding, claiming it can create an additional fire risk.
One Grenfell resident who escaped the fire said the “real issue was when it caught fire to the cladding outside”, spreading across it.
Since the fire, there have been protests across London after "the poor were ignored". The Grenfell Action Group said its repeated warnings over the safety of the tower "fell on deaf ears".
Police said that 59 people are dead, or missing presumed dead, including the 30 already confirmed.
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