London Daily

Focus on the big picture.
Sunday, Aug 30, 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
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
Bank of England Holds Interest Rate at 3.7% as Growth Stalls and Inflation Eases
UK Government Announces Electricity VAT Cut and £2 Bus Fare Cap
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
×