When GOV.UK Becomes GOV.WHOOPS: How £148m of Taxpayers’ Money Went Up in Smoke

High Court Loss, Company Collapse, Public Money Gone

The collapse of PPE Medpro marks the final act in one of the most troubling procurement failures of the COVID-19 era — a failure that now leaves the British public carrying a £148 million loss.

With the company formally liquidated and minimal assets available, the conclusion is unavoidable: taxpayers’ money was spent by government, safeguards failed, and the loss now sits with the public.

The Latest: Liquidation, Pennies in the Pot

PPE Medpro — a company linked to Douglas Barrowman, husband of Michelle Mone — has entered liquidation after losing a High Court case over defective PPE.

• The Department of Health and Social Care (DHSC) is owed approximately £148 million

• The company has around £600,000 available to unsecured creditors

• The vast majority of public money paid out is unlikely to be recovered

This follows a 2025 High Court ruling that found PPE Medpro had breached its contract, supplying surgical gowns that did not meet sterility requirements.

Despite years of litigation, the money is effectively gone.

DHSC, Government, and Public Money

DHSC is not a private actor. It is part of the UK Government, funded entirely through public taxation.

That means:

• The PPE Medpro contracts were paid for with taxpayers’ money, collected by HMRC

• The financial risk was assumed by the state

• The loss now lands on the public balance sheet

This was not speculative private spending. It was government expenditure, authorised under emergency powers and justified at the time as necessary — but executed without adequate protection for public funds.

Where It Went Wrong: Safeguards That Failed

The PPE Medpro contracts were awarded through the government’s pandemic-era VIP procurement lane, designed to fast-track suppliers referred by political figures.

As a result:

• A newly incorporated company with no relevant track record secured contracts worth over £200 million

• Normal due-diligence checks were weakened or bypassed

• Financial safeguards to protect public money proved inadequate

• Defective equipment was paid for and never used

The system prioritised speed and access over scrutiny — and taxpayers absorbed the consequences.

Timing That Raises Questions

PPE Medpro entered administration just as repayment obligations became unavoidable. By the time the court ruled against the company, its financial position meant recovery was largely impossible.

Liquidation now leaves creditors — including government — with almost nothing to show for years of legal action.

The result is not just financial loss, but a collapse of confidence in how emergency procurement was handled.

So Where Does Responsibility Sit?

The facts point in one direction:

• DHSC is part of the UK Government

• The UK Government spent taxpayers’ money

• The safeguards failed

• The public bears the loss

This is not about one company alone. It is about how government chose to spend public money, how risk was managed, and how little protection was in place when things went wrong.

The Broader Lesson

The PPE Medpro collapse is not a one-off anomaly. It is a case study in what happens when emergency powers outpace accountability:

• Political access replaces procurement discipline

• Oversight weakens under pressure

• Public money is exposed to extraordinary risk

• The public ultimately pays the price

Years after the pandemic, the financial damage is still being felt — and the bill has landed exactly where it always does: with the taxpayer.