London Daily

Focus on the big picture.
Monday, Jun 22, 2026

UK ‘wasted’ BILLIONS fighting Covid-19 as inadequate crony firms were awarded govt contracts

UK ‘wasted’ BILLIONS fighting Covid-19 as inadequate crony firms were awarded govt contracts

A New York Times investigation into the UK’s handling of the pandemic reveals misuse of government funds on a massive scale during its Covid-19 response, calling it “one of the greatest spending sprees in Britain’s postwar era.”
The report, titled ‘Waste, Negligence and Cronyism: Inside Britain’s Pandemic Spending’, was published on Thursday. In it, the Times says that “about $11 billion went to companies either run by friends and associates of politicians in the Conservative Party, or with no prior experience or a history of controversy.”

The newspaper based its findings mainly on data provided by Tussell, a research firm that has been tracking UK government contracts and spending in response to Covid-19 since the pandemic began in February.

According to Tussell, the government has spent almost $22 billion on personal protective equipment (PPE), its Test and Trace Programme and hospital supplies.

The Times analyzed the list of companies that had been given contracts to supply PPE and found that billions of dollars in contracts were given to companies connected to, among others, Conservative politician and former investment banker Lord Paul Deighton, who quickly awarded massive contracts to multiple firms where he had financial interests or his own personal connections.

At the same time, many companies that were “often better qualified” to produce PPE but went through the usual channels, submitting applications for contracts online, didn’t even receive a response, according to the Times.

It also says that in the frenzy of scrambling for supplies at the beginning of the pandemic in March, the government ignored the rules of awarding procurement contracts, failing to carry out proper checks and setting up a “VIP lane” for streamlining applications of well-connected firms.

“Dozens of companies that won a total of $3.6 billion in contracts had poor credit, and several had declared assets of just $2 or $3 each. Others had histories of fraud, human rights abuses, tax evasion or other serious controversies,” the report says.

Astonishingly, a few were even set up “on the spur of the moment or had no relevant experience” and yet still won contracts, it added.

The Times gives one example where a company called Ayanda Capital, whose senior board adviser was also a member of a government body, received nearly $340 million to provide PPE.

When it delivered $200 million worth of face masks, it turned out that they were not fit for purpose because “the ear loop fastenings did not match the government’s new requirements.”

The UK’s Department of Health and Social Care, the body in charge of procurement, disputed the claims and issued a statement to the Times, insisting that all contracts were awarded with “proper due diligence.”

Labour Party MP Meg Hillier, who chairs the Public Accounts Committee, expressed her frustration to the Times: “The government had license to act fast because it was a pandemic, but we didn’t give them permission to act fast and loose with public money.”

This isn’t the first time the media has cried foul at the UK government’s coronavirus response measures.

In November, the Guardian reported that the chair of the vaccine taskforce, Kate Bingham, came under scrutiny for allocating more than £670,000 ($900,000) to pay public relations consultants. Bingham just so happened to be married to a Tory MP who went to Eton college at the same time as Prime Minister Boris Johnson, and she herself attended a private school with Johnson’s sister.

Also last month, the Financial Times reported that the UK had spent more money on combating Covid-19 than “almost all comparable countries but still languishes towards the bottom of league tables of economic performance in 2020 and deaths caused by the virus.”

The FT quoted the independent Office for Budget Responsibility as saying that the British economy was set to shrink by 11.3 per cent in 2020, and that the government would need to borrow some 80 percent more than other leading G7 countries to cover its pandemic-related financial problems, while the UK death toll from Covid-19 was expected to be 60 percent higher.

The publication said the poor performance was due to the government’s failure to stop the virus from spreading in the spring and autumn.The total number of coronavirus infections in the UK now stands at almost 2 million, making it the seventh worst-affected country worldwide, with more than 65,000 deaths to date.
Newsletter

Related Articles

0:00
0:00
Close
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
UK Parliament to Debate Newborn Screening for Spinal Muscular Atrophy Following Public Petition
Met Office Warns of Water Safety Risks During Heatwave as Temperatures Peak in England
Treasury Increases Mileage Allowance Payments for 2026–27 Tax Year to 55 Pence Per Mile
UK Government Raises Electricity Generator Levy to 55 Percent in New Revenue Measure
House of Lords Moves Financial Services and Markets Bill to Committee Stage Amid Regulatory Scrutiny
Westminster Hall to Debate Petition on Pro-Israel Influence in UK Politics
UK Parliament Prepares for Estimates Days Debates as Backbench Business Schedule Approved
Armed Forces Bill Nears Final Stages in UK House of Commons With Military Justice Reforms
Donald Trump Comments on UK Political Situation, Citing Immigration and Energy Policy Concerns
Andy Burnham By-Election Victory Fuels Speculation Over Potential Labour Leadership Contest
UK Economy Shows Resilience but Faces Headwinds from Middle East Tensions, UK Finance Says
UK Parliament Opens Week of Debates on Net Zero, Security and Armed Forces Reform
Met Office Issues Amber Extreme Heat Warning as Temperatures Expected to Reach 35C Across England and Wales
Prime Minister Keir Starmer Faces Mounting Leadership Pressure After Makerfield By-Election Defeat
London Hotel Wins World’s Best Afternoon Tea Award at International Hospitality Guide La Liste
Court of Appeal Rules in Favour of Competition and Markets Authority in Phenytoin Drug Case
Chichester Waste Site Suspended After Environment Agency Finds Serious Fire and Pollution Risks
UK Appoints Chris Elmore as Special Envoy on Preventing Sexual Violence in Conflict
Environment Agency Fines Yorkshire Firms Nearly £470,000 for Environmental Permit Breaches
British Chambers of Commerce Says Post-Brexit Trade Deals Have Limited Economic Impact
Resident Doctors to Vote on Government Pay Offer in Ongoing NHS Dispute
UK Public Borrowing Reaches £46.3 Billion in Early Fiscal Year, Driven by Debt Interest Costs
UK Government Unveils £100 Million Package to Strengthen Fire and Rescue Response Capacity
Bank of England Holds Interest Rates at 3.75 Percent Despite Easing Inflation
Met Office Extends Amber Heat Warning as Temperatures Forecast to Reach 38C Across Southern England
Prime Minister Keir Starmer Expected to Resign Amid Mounting Labour Party Pressure
UK Government Tightens Procurement Rules to Prioritise National Security and Supply Chain Resilience
National Drought Group Reviews Water Supply Risks After Dry Spring and Ongoing Heatwave
Andy Burnham Faces Leadership Speculation After Weak Local Election Results for Labour
Charity Commission Appoints Interim Managers to Barnabas Aid Amid Financial Investigation
Government Awards £27 Million Leonardo UK Contract to Maintain Military Aircraft Fleet
Environment Agency Suspends Chichester Waste Site Permit Over Fire and Pollution Risks
Border Force Seizes Record Cannabis Shipment in Major UK Criminal Network Disruption
Lloyds Banking Group to Hire 300 Artificial Intelligence Specialists in Digital Expansion Push
×