Labour recruits for a Covid corruption commissioner to recoup fraudulently obtained finances under the previous Government

In the lead up to the General Election in June 2024, we published an analysis of the manifestos with a particular eye on how opposing political parties intended to fight crime and tackle fraud if they were voted in to form a government.

Labour have now been the governing party of the UK for circa 6 weeks and whilst a significant amount of news coverage in relation to crime has been concerning the recent race riots, they have also started to fulfil their manifesto pledge of appointing a Covid Corruption Commissioner with a view to recover public funds which were paid out having been, potentially, claimed fraudulently during the Covid 19 pandemic.

Rachel Reeves was appointed Chancellor by Sir Kier Starmer at the start of his tenure as the Prime Minister, and the Guardian reported Ms Reeves understood £6.2 billion of public money was lost to fraudsters during the pandemic and that it would be possible to recoup this money.

Ms Reeves is due to commence the recruitment process for the Covid Corruption Commissioner in the coming weeks with the successful candidate expected to work with numerous agencies including HMRC, the Serious Fraud Office and the National Crime Agency to investigate the payments made during Covid and uncover and recover payments that were claimed fraudulently.

During a debate in parliament on 22 July 2024, Ms Reeves that she “will not tolerate waste”, will “treat taxpayers’ money with respect” and will “return stability to our public finances”. 

Whilst there has been significant news coverage in relation to contracts to purchase PPE (personal protection equipment) for the NHS during the pandemic, it is easy to forget there were other financial initiatives during the pandemic such as the furlough scheme, the Small Business Grant scheme and the “Eat Out To Help Out” scheme which, it is alleged, were targeted by fraudsters, or used for illegitimate means, to the tune of more than £7billion.

There has however been some speculation as to how hopeful Labour is in recouping costs given that there were no new funds in Labour manifesto’s financial forecasts relating to the billions lost during the pandemic for which the Covid Commissioner would be responsible for seeking to recover. There is no guarantee that any public money will be recovered. However, the appointment of a Covid Corruption Commissioner is the first step to making attempts to recoup the billions that flowed through these various initiatives not always, it would appear, to the intended and specified end.