The collapse of a personal protective equipment (PPE) company associated with Baroness Michelle Mone has left the tax authorities owed a substantial £39 million, as revealed by the Mirror. This debt adds to the £148 million that PPE Medpro is required to pay the Department of Health following a legal defeat over substandard gowns. Meanwhile, there are indications that Chancellor Rachel Reeves might reconsider Labour’s promise not to increase certain taxes for the general public.
In response to the situation, individuals who lost family members during the pandemic are demanding that Baroness Mone lose her title. HMRC has confirmed that PPE Medpro owes them £39,009,047.78. A representative of Covid-19 Bereaved Families for Justice UK emphasized the need for accountability, urging the government to recover public funds, enforce penalties, and hold those involved responsible, including stripping Baroness Mone of her honors.
Baroness Mone and her husband, residing in the tax-friendly Isle of Man, are reported to have gained £65 million from PPE contracts totaling £202 million, obtained through her lobbying efforts with the government. The company’s recent administration filing suggests it may owe up to £190 million in taxpayer funds.
The reasons behind HMRC’s claim of £39,009,047.78 against PPE Medpro remain unclear. The appointed administrators, Forvis Mazars, refrained from commenting on the matter but anticipate further claims. Notably, the Department for Health and Social Care is also a major creditor, being owed £148,045,993. Despite winning £122 million in damages, the DHSC has not received repayment from PPE Medpro, which now has minimal assets remaining.
During legal proceedings, PPE Medpro argued it was unfairly targeted by the government, attributing gown defects to post-delivery storage conditions at the DHSC. The company secured its contracts during the previous Conservative administration following recommendations by Baroness Mone.
Separately, Baroness Mone, her husband, and their company are under investigation by the National Crime Agency for suspected criminal activities related to PPE contract procurement. Health Secretary Wes Streeting condemned PPE Medpro for endangering NHS staff and patients with inadequate equipment while profiting themselves. Despite facing scrutiny, Baroness Mone maintains innocence, suggesting the DHSC rejected settlement offers.
Administrative documents reveal that a creditor linked to Baroness Mone’s husband, Doug Barrowman, stands to be repaid in full. Angelo (PTC) Limited, connected to Barrowman, initiated PPE Medpro’s administration over a £1 million debt. Moreover, reports from the Isle of Man Companies Registry shed light on the intricate financial web surrounding the company.
PPE Medpro’s current director, Arthur Lancaster, claims a debt of £948,416 owed to HMRC, though the recovery outlook remains uncertain. Tax expert Dan Neidle highlights potential tax avoidance schemes by Barrowman, questioning the lack of corporation tax payments despite significant profits.
As the situation unfolds, HMRC’s pursuit of outstanding debts raises questions about accountability and financial practices within the PPE industry.
