The official inquiry into the UK's handling of the Covid-19 pandemic has found that almost £10 billion of taxpayers' money was wasted in the scramble to procure personal protective equipment (PPE). In her fifth report, Baroness Heather Hallett criticised the 'vast' waste, which amounted to £9.9 billion – two-thirds of the £14.9 billion spent by the UK and devolved governments on PPE.
VIP Lane Criticised as 'Misguided'
Baroness Hallett singled out the controversial 'VIP lane', which prioritised offers of PPE from individuals with political connections, describing it as a 'misguided' and 'unfair' process that undermined public confidence. However, she found 'no evidence of cronyism or corruption' by ministers or officials in awarding contracts.
Lady Hallett stated: 'The waste of taxpayers' money was vast. 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.'
Underprepared for Pandemic
The report highlighted that the UK was underprepared for the pandemic, with existing stockpiles of PPE in a 'perilous state', including large quantities of expired equipment. Only a third of masks in England's pre-pandemic stockpile were usable, while Scotland had no supplies of top-level FFP3 masks needed by healthcare professionals.
The procurement system was under 'immense pressure' after then-Prime Minister Boris Johnson and then-Health Secretary Matt Hancock issued a 'call to arms' for PPE in April 2020. Officials told the inquiry this made matters worse, with the system receiving 25,000 offers over 15 weeks, including 300 offers a day at peak times.
Inherent Bias in VIP Lane
Against this backdrop, officials established a 'high priority' or 'VIP' lane for offers referred by politicians and healthcare leaders. Lady Hallett described this as 'a misguided attempt at prioritisation that embedded unfairness in emergency procurement'. Contracts awarded through the VIP lane were more expensive and had more performance issues than those from the normal route.
Of the 32 people who referred successful offers to the VIP lane, 15 had a connection with the Conservative Party, with none from other parties. Lady Hallett noted the system was 'inherently biased towards those with connections to the UK government', damaging trust and reputation. She said: 'The High Priority Lane should not be repeated.'
Reactions and Ongoing Investigations
Nicola Brook, a solicitor at Broudie Jackson Canter representing the Covid-19 Bereaved Families for Justice UK campaign group, criticised the findings, stating: 'Today's report reveals the shocking level of corruption and cronyism at the heart of government, resulting in billions of pounds lost as companies sought to profit while thousands died.'
The report did not include findings on PPE Medpro, linked to Conservative peer Baroness Michelle Mone, due to an ongoing National Crime Agency (NCA) investigation. Both Lady Mone and her husband Doug Barrowman deny wrongdoing. The inquiry will release its findings on Medpro once criminal proceedings conclude.
The inquiry estimated £256 million was lost to fraud in PPE procurement, but noted that the Medpro probe is the only criminal process for alleged PPE fraud in the UK. Naomi Fulop, from the bereaved families group, urged the NCA to conclude its inquiry swiftly so the public can see 'the full extent of the PPE scandal'.
Positives and Government Response
Lady Hallett acknowledged some positives, praising businesses, the public, and the Army for their efforts. A Downing Street spokeswoman said: 'Today’s report obviously makes for difficult reading... This Government is committed to learning the lessons of the Covid Inquiry so that we are protected and prepared for the future.'
