PPE Medpro Faces £39m Tax Bill Amidst £148m Government Repayment Order
Published 5 November 2025
Highlights
- PPE Medpro, linked to Michelle Mone and Doug Barrowman, owes £39m in unpaid taxes to HMRC.
- The company was ordered to repay £148m to the UK government for breaching a PPE contract during the Covid-19 pandemic.
- PPE Medpro was placed into administration in September 2023, with total debts amounting to £188m.
- Doug Barrowman admitted to receiving over £60m in profits from PPE Medpro, with funds transferred to offshore trusts.
- The company was awarded contracts via a "VIP lane" during the pandemic, raising questions about political connections and procurement processes.
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Rewritten Article
Title: PPE Medpro Faces £39m Tax Bill Amidst £148m Government Repayment Order
PPE Medpro, a company linked to former Conservative peer Michelle Mone and her husband Doug Barrowman, is embroiled in a financial and legal quagmire, owing £39 million in unpaid taxes to His Majesty's Revenue and Customs (HMRC). This revelation comes on the heels of a court ruling that ordered the firm to repay £148 million to the UK government for failing to meet contractual obligations during the Covid-19 pandemic.
Financial and Legal Troubles
The company, which was placed into administration on September 30, 2023, faces total debts of £188 million. This includes the substantial tax bill and the repayment to the Department of Health and Social Care (DHSC) for supplying non-compliant medical gowns. The legal judgment, delivered by Mrs Justice Cockerill, highlighted the breach of contract concerning the supply of 25 million sterile surgical gowns, initially awarded in June 2020.
Controversial Contracts and Political Connections
PPE Medpro's contracts, totaling £203 million, were secured through a controversial "VIP lane" designed to expedite procurement during the pandemic. This process has been criticized for favoring entities with political ties, as Mone reportedly approached then-Cabinet Office minister Michael Gove to facilitate the contracts. The company was established in May 2020 by a consortium led by Barrowman, who later admitted to being the ultimate beneficial owner.
Profits and Offshore Trusts
Doug Barrowman has acknowledged receiving over £60 million in profits from PPE Medpro, with significant amounts transferred to offshore trusts. These trusts were reportedly set up to benefit Mone and her children. Despite previous denials of involvement, both Mone and Barrowman have been linked to the company's operations, raising further questions about the transparency and ethics of the procurement process.
Implications for Government and Business Practices
The PPE Medpro case underscores the complexities and potential pitfalls of emergency procurement processes, especially those involving political connections. The DHSC has expressed its determination to recover the owed funds, with Health Secretary Wes Streeting stating the government will pursue the company "with everything we've got."
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Scenario Analysis
The unfolding situation with PPE Medpro could have significant implications for both the UK government and businesses involved in public procurement. The case highlights the need for stricter oversight and transparency in awarding contracts, particularly in emergency situations. Legal experts suggest that the government's aggressive pursuit of owed funds may set a precedent for future cases involving contract breaches.
Politically, the scandal could lead to increased scrutiny of the "VIP lane" and similar procurement practices, potentially prompting legislative reforms. For businesses, the case serves as a cautionary tale about the importance of compliance and ethical practices, especially when dealing with government contracts. As the situation develops, it will be crucial to monitor how these legal and political dynamics unfold.
PPE Medpro, a company linked to former Conservative peer Michelle Mone and her husband Doug Barrowman, is embroiled in a financial and legal quagmire, owing £39 million in unpaid taxes to His Majesty's Revenue and Customs (HMRC). This revelation comes on the heels of a court ruling that ordered the firm to repay £148 million to the UK government for failing to meet contractual obligations during the Covid-19 pandemic.
Financial and Legal Troubles
The company, which was placed into administration on September 30, 2023, faces total debts of £188 million. This includes the substantial tax bill and the repayment to the Department of Health and Social Care (DHSC) for supplying non-compliant medical gowns. The legal judgment, delivered by Mrs Justice Cockerill, highlighted the breach of contract concerning the supply of 25 million sterile surgical gowns, initially awarded in June 2020.
Controversial Contracts and Political Connections
PPE Medpro's contracts, totaling £203 million, were secured through a controversial "VIP lane" designed to expedite procurement during the pandemic. This process has been criticized for favoring entities with political ties, as Mone reportedly approached then-Cabinet Office minister Michael Gove to facilitate the contracts. The company was established in May 2020 by a consortium led by Barrowman, who later admitted to being the ultimate beneficial owner.
Profits and Offshore Trusts
Doug Barrowman has acknowledged receiving over £60 million in profits from PPE Medpro, with significant amounts transferred to offshore trusts. These trusts were reportedly set up to benefit Mone and her children. Despite previous denials of involvement, both Mone and Barrowman have been linked to the company's operations, raising further questions about the transparency and ethics of the procurement process.
Implications for Government and Business Practices
The PPE Medpro case underscores the complexities and potential pitfalls of emergency procurement processes, especially those involving political connections. The DHSC has expressed its determination to recover the owed funds, with Health Secretary Wes Streeting stating the government will pursue the company "with everything we've got."
What this might mean
The unfolding situation with PPE Medpro could have significant implications for both the UK government and businesses involved in public procurement. The case highlights the need for stricter oversight and transparency in awarding contracts, particularly in emergency situations. Legal experts suggest that the government's aggressive pursuit of owed funds may set a precedent for future cases involving contract breaches.
Politically, the scandal could lead to increased scrutiny of the "VIP lane" and similar procurement practices, potentially prompting legislative reforms. For businesses, the case serves as a cautionary tale about the importance of compliance and ethical practices, especially when dealing with government contracts. As the situation develops, it will be crucial to monitor how these legal and political dynamics unfold.
