Government wasted nearly £10 billion on unusable PPE, Covid inquiry reveals
Boris Johnson’s government wasted almost £10 billion as it scrambled to buy personal protective equipment (PPE) that was eventually found to be unusable, the Covid inquiry has found, reports BritPanorama.
In the fifth report of her investigation, Heather Hallett criticised the “vast” waste of taxpayers’ money in pandemic procurement, revealing that of approximately £14.9 billion spent on medical equipment – including masks, gloves, and gowns – nearly two-thirds was wasted.
The government’s highly controversial “VIP lane,” which prioritised offers of PPE referred by senior politicians or officials, was branded “misguided” and found to have been “inherently biased” towards suppliers with political connections.
Baroness Hallett issued a withering assessment of the government’s wastage, saying: “The public must be able to trust that their money is being spent with propriety, fairness and transparency.”
“Public confidence – so important in an emergency – was undermined by failures in procurement,” she added. However, Hallett noted there was “no evidence of cronyism or corruption” by ministers or officials when awarding contracts.
Other key findings from the report include:
- VIP Lane suppliers were 13 times more likely to be awarded contracts but more likely to have performance issues.
- Frontline workers faced shortages of adequate PPE to protect themselves and loved ones.
- The UK’s reliance on China for PPE left it dangerously exposed.
- A lack of transparency surrounding the VIP lane diminished public trust.
- The UK’s existing stockpiles of PPE were in a “perilous state” at the pandemic’s onset.
- Hallett called for a fundamental change in how the UK prepares for emergency procurement.
- Of the 32 individuals who referred successful offers to the VIP lane, 15 were linked to the Conservative Party.
The enquiry highlighted a procurement system working under “immense pressure,” with no effective system to triage offers of PPE. It documented an overwhelming number of offers, receiving 25,000 within just 15 weeks, peaking at 300 offers daily.
In response, officials created a “high priority” or “VIP” lane to expedite offers from credible sources like politicians and healthcare leaders. However, this led to preferential treatment for certain suppliers, raising questions about fairness.
The report revealed that potential suppliers through the “VIP Lane” were 13 times more likely to secure contracts, although they frequently encountered performance issues. Out of 15,194 suppliers who offered PPE through the non-high priority lane, only 160 received contracts.
Among the 430 suppliers in the VIP lane, 54 were awarded contracts. However, the Department of Health and Social Care noted that proportionally, more of these contacts encountered contractual performance issues, including incorrect technical documents.
Lady Hallett described the VIP lane as “a misguided attempt at prioritisation that embedded unfairness in emergency procurement,” highlighting the risks of abusive practices. “It undermined public trust in the UK government’s emergency procurement system,” she said.
The inquiry revealed that the UK was not adequately prepared for the pandemic, with existing PPE stockpiles deemed “in a perilous state.” Only a third of masks in England’s pre-pandemic stockpile were usable, while Scotland lacked top-level FFP3 masks essential for healthcare workers.
As equipment was distributed, healthcare workers reported shortages, raising concerns about the safety and quality of supplied equipment. Hallett stated, “There were also no proper plans for the procurement and distribution of key healthcare equipment in any emergency, leaving frontline workers without adequate PPE.”
The prime minister’s official spokesperson acknowledged the report’s difficult content and emphasised the government’s commitment to learning from the inquiry to improve future preparedness.
In response to the findings, solicitor Nicola Brook, representing the Covid-19 Bereaved Families for Justice UK campaign, denounced the inquiry, saying it exposed a “shocking level of corruption and cronyism” in government, costing billions while lives were lost. She also criticized the inquiry for not addressing key witnesses involved in controversial contracts.
Regarding PPE Medpro, which was ordered to repay £148 million last year after being found to breach a supply contract, the inquiry did not include findings on the company due to ongoing investigations by the National Crime Agency, linked to Conservative peer Michelle Mone.
Both Mone and her husband Doug Barrowman deny any wrongdoing and the inquiry has stated it will release further findings once any criminal proceedings are concluded.
The findings underscore the urgent need for reform in emergency procurement processes, a situation that remains a crucial discussion point for future governance.
