The scramble to buy personal protective equipment (PPE) during the pandemic resulted in nearly £10 billion of taxpayers' money being wasted, according to the official inquiry into the UK's handling of Covid-19. 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 'Misguided and Unfair'
Baroness Hallett also condemned the controversial 'VIP lane', which prioritised PPE offers from individuals with political connections, describing it as a 'misguided' and 'unfair' process that undermined public confidence. However, she stated there was 'no evidence of cronyism or corruption' by ministers or officials when awarding contracts.
Lady Hallett said: '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 found the UK was underprepared for the pandemic, with existing PPE stockpiles 'in a perilous state'. Large quantities of equipment had expired, with only a third of masks in England's pre-pandemic stockpile usable, and Scotland lacking any top-level FFP3 masks needed by healthcare professionals.
The procurement system operated under 'immense pressure', with no effective triage system for PPE offers. After Boris Johnson and then-health secretary Matt Hancock issued a 'call to arms' for PPE in April 2020, the system was 'deluged' with offers. Officials told the inquiry the call to arms 'made matters worse', with 25,000 offers over 15 weeks, including 300 per day at peak times.
Inherent Bias in VIP Lane
The VIP lane was established as a 'high priority' route for offers referred by politicians and healthcare leaders. Lady Hallett described it as 'a misguided attempt at prioritisation that embedded unfairness in emergency procurement', making offers from politically connected individuals more likely to receive contracts. Contracts via the VIP lane were 'more expensive' and had more 'contract performance issues' than those through the normal route.
Of 32 people who referred successful offers to the VIP lane, 15 had a connection with the Conservative Party, with none from other parties, though politicians from other parties were referred. Lady Hallett said the system was 'inherently biased towards those with connections to the UK government', heightening the risk of abuse and damaging trust. She concluded: 'The High Priority Lane should not be repeated.'
Reactions and Ongoing Investigations
Nicola Brook, a solicitor representing the Covid-19 Bereaved Families for Justice UK campaign group, criticised the inquiry's findings, saying: '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.' She also criticised the chair for failing to call crucial witnesses.
The report did not include findings on PPE Medpro, linked to Conservative peer Baroness Michelle Mone and her husband Doug Barrowman, due to an ongoing National Crime Agency (NCA) investigation. Both deny wrongdoing. The inquiry will release findings once criminal proceedings conclude.
Wider fraud in procurement saw £256 million lost to fraud, according to UK government estimates, but the PPE Medpro investigation is the only criminal process for alleged PPE procurement fraud in the UK. Naomi Fulop from the bereaved families group urged the NCA to conclude swiftly.
Lady Hallett also noted 'positives' in the pandemic response, including businesses and the public rallying to help, and the Army's logistical operation. A Downing Street spokeswoman said the government would 'carefully consider the inquiry’s recommendations' and respond in due course.
