Rachel Reeves pledges to tackle Covid corruption after £400m recovered: 'We want our money back'

The Chancellor has been outlining what she views as key shortcomings of the previous administration, citing Liz Truss’s mini-budget, the “botched Brexit deal,” and describing it as “the worst parliament on record for living standards”.

Ms Reeves says nearly £400million has already been reclaimed from pandemic-related fraud that occurred under the Conservative government.

She notes that recovery efforts are ongoing, and the current administration is introducing “additional new powers to investigate and recover more money from fraudsters”.

To enforce these powers, Ms Reeves announces the formation of a specialist team: “I can tell you today that to deploy those new powers, we are recruiting a new hit squad to investigate and recover all the money that is owed to the British people.”

But she says the “most enduring consequences of the Conservatives’ time in office” is “their economic failure”.

Ms Reeves explains that Labour’s plan for economic renewal will be grounded in “stability, to keep taxes, inflation and interest rates as low as possible.

"Economic reform, to unlock the contribution of businesses and working people, and investment, in every part of Britain.

“We are getting that money back, and we are putting it where it belongs, in our communities, in our schools and in our National Health Service.”

Ms Reeves says the UK's reputation was left "in tatters" under the previous Conservative government, saying the Labour government is "still paying the bills for their waste and cronyism".

Failed pandemic-era PPE contracts cost the British taxpayer £1.4billion, as an interim report commissioned by Chancellor Rachel Reeves lays bare the scale of the scandal.

The Covid Counter Fraud Commissioner’s report reveals the price the British public has paid for undelivered contracts which saw taxpayer money squandered on unusable PPE.

The last Government’s over-ordering of PPE, and delays in checking it, mean £762million is unlikely to ever be recovered.

These failures saw substandard PPE – gowns, masks and visors – not inspected for two years, meaning public money could no longer be recouped.

PPE suppliers have also been referred to the National Crime Agency for suspected fraud.

Chancellor Rachel Reeves previously said: "The country is still paying the price for the reckless handling of Covid contracts which saw taxpayer pounds wasted and criminals profit from the pandemic."

"This investigation and plan to recover public money underlines our commitment to ensure that every penny spent during the pandemic is fully accounted for."

"We have always been clear that money poorly spent or fraudulently claimed belongs to the British people. This Government will bring criminals to justice and put taxpayer’s money back where it belongs – in the NHS, police and armed forces."

Most of the wasted money went on surgical gowns.

Over half, 52 per cent, were non-compliant.

Because much of the defective PPE was not quality tested until after warranties had expired, there is little chance of recovering the money.

The interim report marks the end of Phase one of Commissioner Tom Hayhoe’s investigation into PPE contracts.

The Commissioner has now begun work on Phase two, which will see him investigate fraud and error in other pandemic spending programmes such as furlough, bounce-back loans, Business Support Grants and Eat Out to Help Out.

The Commissioner will provide a full update in a final report to the Chancellor at the conclusion of his term in December 2025.