Oral Answers to Questions

Debate between Sarah Edwards and Alex Burghart

Thursday 29th February 2024 Commons Chamber

[Sarah Edwards (Tamworth) (Lab)]

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

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

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.

[Alex Burghart]

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.

[Sarah Edwards]

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?

[Alex Burghart]

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.