STORY
A government-commissioned interim report has revealed that UK taxpayers lost £1.4 billion on defective or undelivered pandemic-era PPE contracts. Chancellor Rachel Reeves commissioned the Covid Counter Fraud Commissioner’s report, which highlights widespread procurement failures under the previous administration. According to the interim findings, £762 million of that total is unlikely to be recovered because substandard gowns, masks and visors were not inspected until two years after delivery—well beyond warranty periods. As a result, many suppliers cannot now be held contractually liable.
Reeves has pledged to pursue the remaining £468 million still recoverable. To date, £182 million has been returned to the public purse. Suspected fraudulent suppliers have been referred to the National Crime Agency. The Chancellor said Treasury officials are “determined to ensure that every penny spent during the pandemic is fully accounted for.”
“This Government will bring criminals to justice and put taxpayer money back where it belongs – in the NHS, police and armed forces” Reeves added.
The report identifies surgical gowns as the greatest source of loss as 52 per cent of gowns procured were non-compliant with safety standards. By the time quality tests were carried out, warranties had expired. Tom Hayhoe, Covid Counter Fraud Commissioner, concluded Phase One of his investigation, focusing solely on PPE contracts, and has now moved to Phase Two. The next phase will examine potential fraud and errors in other Covid support schemes, including furlough payments, bounce-back loans, business support grants and the Eat Out to Help Out programme. Final recommendations from Hayhoe are due in December 2025, when he will report back to the Chancellor with a comprehensive account of pandemic spending irregularities.