HomeEverythingEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Covid inquiry finds UK government wasted billions on PPE

Created at 14 Jul · 11:06 AM2 sources↑ Market-relevant2 events
IN SHORT

An inquiry into the UK's pandemic response found that the government wasted nearly two-thirds of the £14.9 billion spent on personal protective equipment (PPE), amounting to almost £10 billion. The report criticized a "VIP lane" that prioritized politically connected firms, leading to unfairness and undermining public trust.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

£14.9bntotal spent on PPE
£10bnwasted on PPE
£42bntotal government spending on PPE and other equipment (Jan 2020-June 2022)
203mvalue of PPE Medpro contracts
11recommendations made by the inquiry

Who's Involved

Baroness Hallett
Chair of the Covid-19 inquiry
Boris Johnson
Former UK Prime Minister whose government is criticized
Michelle Mone
Conservative peer linked to PPE Medpro contracts
Doug Barrowman
Businessman linked to PPE Medpro contracts
Matt Hancock
Former health secretary who gave evidence
Michael Gove
Cabinet minister who gave evidence
National Crime Agency (NCA)
Conducting an ongoing criminal investigation into PPE Medpro

↳ Why This Matters

The inquiry's findings highlight significant failures in government preparedness and procurement during the COVID-19 pandemic, leading to substantial financial waste and compromising the safety of healthcare workers.

Key facts

  • The UK government wasted approximately £10 billion on PPE during the pandemic.
  • An inquiry chaired by Baroness Hallett criticized a "VIP lane" that prioritized politically connected companies.
  • The inquiry found the UK's initial PPE stockpile was inadequate, leaving healthcare staff vulnerable.
  • Nearly two-thirds of the £14.9 billion spent on PPE was wasted.
  • Recommendations include overhauling emergency procurement and developing a domestic industry strategy for healthcare equipment.

An official inquiry into the UK's pandemic response has concluded that the government, under Boris Johnson, wasted "vast" sums of public money on personal protective equipment (PPE) due to flawed procurement processes. The inquiry chair, Baroness Hallett, specifically criticized the "high priority lane," or "VIP lane," which gave preferential treatment to companies with political connections to the Conservative party.

Hallett stated that this "misguided attempt" to prioritize credible offers "embedded unfairness" and undermined public trust at a critical time. The inquiry found that out of approximately £14.9 billion spent on PPE, nearly two-thirds, or almost £10 billion, was wasted. The nation's stockpile of PPE was also found to be inadequate at the start of the pandemic, leaving healthcare workers vulnerable.

While the inquiry did not identify cronyism or corruption on the part of ministers and officials in final contracting decisions, Hallett emphasized that the "VIP lane" should not have been established and must not be repeated. The report noted that findings related to PPE Medpro, a company linked to Baroness Michelle Mone and Doug Barrowman, are not yet published due to an ongoing National Crime Agency investigation.

Hallett's report includes recommendations aimed at preventing similar waste and ensuring fairness in future emergency procurement, including investing in British manufacturing, improving stockpile management, and enhancing transparency and accountability.

Frequently asked questions

The inquiry found that of approximately £14.9 billion spent on PPE, nearly two-thirds, or almost £10 billion, was wasted.

The "VIP lane" was a system set up in April 2020 to give offers of PPE supply greater urgency if they came with a recommendation from ministers, MPs, or other senior officials.

Baroness Hallett stated she had not identified cronyism or corruption on the part of ministers and officials when PPE contracts were finally awarded, but criticized the "VIP lane" for embedding unfairness.

Recommendations include a "radical overhaul" of the emergency procurement system, drawing up a "domestic industry strategy" for healthcare equipment, and improving the state of the pandemic stockpile.

What Happens Next

01The National Crime Agency investigation into PPE Medpro contracts is ongoing.
02Findings related to PPE Medpro will be published after the conclusion of any criminal proceedings.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

A Covid inquiry found the UK government wasted vast sums on flawed PPE procurement.
The inquiry identified a "VIP lane" for connected firms that embedded unfairness.
Healthcare staff were left without adequate PPE due to planning failures.
The UK's initial PPE stockpile was in a "perilous state".
Nearly two-thirds of the £14.9 billion spent on PPE, almost £10 billion, was wasted.
The inquiry chair described the waste of taxpayers' money as "vast".
Overreliance on China for manufacturing left the UK "dangerously overexposed".
When other equipment like home testing kits was included, total government spending between January 2020 and June 2022 exceeded £42bn.

Sources

T1
PPE failures left NHS staff poorly protected and wasted billions, Covid inquiry findsBBC News
T1
Johnson government wasted ‘vast’ sums on PPE, Covid inquiry findsThe Guardian

Related Stories

Navy Drone Boat Program Upended by Politics, Contract Competition
14 Jul · 9:16 AM
US refunds $81bn in tariffs after Supreme Court ruling
14 Jul · 12:46 AM
Report: Crowd control weapons misused on anti-immigration protesters, causing injuries
14 Jul · 11:06 AM
England's 2030 Nature Restoration Plan Criticized as Insufficient
13 Jul · 11:41 AM
Trump clean energy policies linked to $83 billion in delayed or canceled projects
14 Jul · 8:04 AM