Covid contracts

An interim report commissioned by Chancellor Rachel Reeves has revealed that failed pandemic‑era PPE contracts have left the British public facing a £1.4 billion financial burden. The document outlines the extent of losses linked to agreements that either failed to deliver protective equipment or supplied items that could not be used in health or care settings.

According to the Covid Counter Fraud Commissioner, significant sums of public money were paid out for contracts that did not meet their obligations. In many cases, suppliers delivered gowns, masks, visors, and other equipment that fell short of required safety or quality standards. As a result, large quantities of PPE were deemed unusable, representing a substantial waste of taxpayer funds at a time of national crisis.

The report highlights systemic issues in procurement and oversight during the previous government. Over-ordering, combined with lengthy delays in inspecting delivered stock, has left £762 million effectively unrecoverable. Some PPE remained untested for up to two years, and by the time defects were identified, warranties had expired and legal avenues to reclaim costs had narrowed or closed entirely.

Despite these setbacks, Reeves has committed to pursuing the £468 million that may still be recoverable from suppliers. Any funds successfully reclaimed will be reinvested into public services, including the NHS, policing, and the armed forces. To date, recovery efforts have already returned £182 million to the public purse, and several suppliers have been referred to the National Crime Agency over suspected fraudulent activity.

• A report commissioned by Chancellor, Rachel Reeves, reveals £multibillion price British taxpayers paid for reckless handling of Covid contracts
• Previous government failure to test defective PPE leaves millions of taxpayer pounds unrecoverable.  
• It comes as Reeves drives work to recover £468 million for communities and public services, underlining commitment to investigate and account for every penny spent during the pandemic under the Plan for Change

In a statement, Reeves said the country continues to bear the consequences of what she described as reckless management of Covid procurement. She emphasised the government’s determination to account for every pound spent and to ensure that money wrongly obtained is returned to the British people.