London Daily

Focus on the big picture.
Monday, Aug 03, 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
Nigel Farage Expresses Openness to Potential Alliance with Restore Britain
Triple Lock Lifts UK State Pension but Leaves a Wider Retirement Gap
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Two Firefighting Crew Members Die in Helicopter Collision West of Athens
Public Sector Automation Through Artificial Intelligence
Regional Investment Beyond London
Protection of Strategic Technology Assets
UK Competition Regulator Blocks Major Foreign Takeover of British Quantum Computing Firm
UK Government Commits Two Billion Pounds to Modernise Northern Rail Network
UK Parliament Approves Planning Reforms to Accelerate Housing Construction on Green Belt Land
Scotland Approves Major Floating Offshore Wind Expansion in the North Sea
United Kingdom and European Union Sign Defence and Critical Minerals Cooperation Agreement
NHS Invests Five Hundred Million Pounds in Artificial Intelligence Diagnostics to Reduce Waiting Lists
Bank of England Cuts Interest Rate to Three Point Seven Five Percent as Inflation Pressures Ease
Ceuta Border Surge Recasts Europe’s Migration Debate
Burnham Promises a Harder Channel Response as Crossings Test His New Government
Glasgow 2026 Commonwealth Games End With Organisers Defending Smaller Format as Sustainable Model
Reform UK Faces Labour Criticism Over Nigel Farage Leadership Return Discussions
Environment Agency Restricts River Thames Navigation as Low Water Levels Raise Concerns
UK Government Launches Free Bus Travel Scheme for Children During Summer Holidays
Chancellor Rachel Reeves Confirms October Budget Date and Plans Wider Regional Funding Shift
Prime Minister Andy Burnham Promises Tougher Action on Small Boat Crossings Amid European Migration Pressure
UK Economic Growth Forecast Raised Slightly as Inflation Expected to Remain Above Target Until 2029
National Farmers Union Warns of Food Shortage Risks as Drought and Heatwaves Damage UK Crops
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
×