Covid-19: Procurement Fraud

13. What recent estimate he has made of the cost to the public purse of procurement fraud during the covid-19 pandemic.

15. What recent estimate he has made of the cost to the public purse of procurement fraud during the covid-19 pandemic.

The Government’s “Cross-Government Fraud Landscape Annual Report 2022” includes data from the first year of the Government’s response to the pandemic. The report suggests that in 2020-21, Government Departments and arm’s length bodies reported a total of £124.6 million of detected procurement fraud. The same report showed that at the end of March 2021, some £88.2 million of fraud and error had been recovered within covid-19 schemes. Since then, crucially, further funds have been recovered and the Government will continue to update the House as fresh data becomes available.

When people think back to the sacrifices they made during the pandemic, the greed associated with the personal protective equipment scandal really jars with them, so will the Minister commit to following the Labour party’s lead and appoint a covid corruption commissioner to chase down and claw back every penny of taxpayers’ money that was wasted?

This Government take PPE fraud extremely seriously. To remind the House of the figures, 1.8% of expenditure on PPE was lost to fraud at a time when there was the most extraordinary public crisis in several generations and we were competing in an extremely overheated international market. To date, we have recovered more than a quarter of that 1.8% and the fight to recover more continues. PPE procurement is subject to ongoing contract management controls, active dispute resolution and recovery action. The law is on our side and we are using it.

The covid procurement scandal upset many people, and rightly so. I spoke with a fantastic local business in Tamworth, Wearwell (UK), which was manufacturing PPE as part of the regional procurement but was cut out of the process during the pandemic. The UK must be prepared in the event of another pandemic, and British manufacturing offers a greater response time and a more stable supply chain. When will we return to regional procurement to ensure that local businesses are prioritised when providing PPE for the nation?

I welcome the hon. Lady to what I think are her first Cabinet Office questions. She is right to draw attention to the fantastic textile manufacturing that exists in the region in which her constituency sits. She will have heard me talk about the Procurement Act 2023, which was passed last year and will make sure that small and medium-sized enterprises, which by their nature are often local enterprises, will have a bigger share of public procurement.

I call the shadow Minister.

We have not just had the infamous Baroness Mone scandal; at the time, there were reports of a hedge fund in Mauritius that got a £250 million contract for face masks that could not be used and a jeweller in Florida that got a multimillion-pound contract for gowns that could not be used. The Government had to incinerate billions of pounds-worth of faulty personal protective equipment. That is taxpayers’ money literally going up in smoke. In the pandemic the then Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), told me at the Dispatch Box

“where a contract is not delivered against, we do not intend to pay taxpayers’ money”.—[Official Report, 23 February 2021; Vol. 689, c. 758.]

But taxpayers’ money was spent, wasn’t it? Why was that promise not met?

I gently refer the right hon. Gentleman to the answer I just gave. The fact is that, although problems arose with PPE procurement in this uniquely difficult environment in which officials were working unbelievably hard for the public good, PPE procurement is still subject to ongoing contract management controls, active dispute resolution and recovery action. The fact of the matter is that this Government took it seriously during the pandemic. The Department of Health and Social Care realised the risk of fraud early on, and the Government established a counter-fraud team to counter that threat. We are using all the legal tools at our disposal to get taxpayers’ money back. The House should be in no doubt that the Government’s speed of action during the crisis enabled many lives to be saved and for the country to overcome the covid-19 crisis.