Taxpayers will be exposed to pandemic cost risks for decades, report says

Published

4 years ago

July 25, 2021

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Taxpayers will spend decades exposed to financial risks from the government’s coronavirus spending, according to a committee of MPs.

Parliament’s public accounts committee (PAC) has produced two reports related to the crisis, the first of which warns that Britain will be exposed to “significant financial risks for decades to come”.

The cost of government measures has already reached £372bn, they said.

PAC chair Dame Meg Hillier said: “With eye-watering sums of money spent on COVID measures so far the government needs to be clear, now, how this will be managed going forward, and over what period of time.

“The ongoing risk to the taxpayer will run for 20 years on things like arts and culture recovery loans, let alone the other new risks that departments across government must quickly learn to manage.”

Among the concerns is that, of the estimate £92bn in loans guaranteed by the government as of May, £26bn is expected to be lost as a result of bad loans to businesses.

But the exact scale of loss will going to be known for some time, the report said.

It added: “To make decisions and disburse funding more quickly, government relaxed the usual rules over the management of public money and took on significant financial risks, which government may have to manage for many years and which will have implications for future spending decisions.”

Another concern was the cost of personal protective equipment, where the committee said there had been “unacceptably high” levels of wasteful spending.

Some 2.1 billion items purchased were found to be unusable, at a cost of more than £2bn to the taxpayer.

The stockpile of remaining PPE was also “not fit for purpose”, the committee said, adding that this was despite a cost of more than £10bn.

As of May, out of the 32 billion items of PPE ordered, some 11 billion had been distributed.

Some 12.6 billion are being held as stock, with storage costing around £6.7m per week.

Some 8.4 billion items are still on order and have not yet arrived.

The second report concentrated on the prospect of an inquiry into the handling of the coronavirus crisis, an inquiry that has been promised for next year.

However, the committee said the government should not wait for the review before “learning important lessons”, calling for a recovery plan to be presented in the autumn spending review.

Dame Meg said: “If coronavirus is with us for a long time, the financial hangover could leave future generations with a big headache.”

A Department of Health and Social Care spokeswoman responded: “There are robust processes in place to ensure that government spending always provides value for money for the taxpayer.

“We have worked tirelessly to source life-saving PPE to protect health and care staff, and we have delivered over 12.7 billion items to the frontline at record speed.”

Politics

If Trump strikes, what will Starmer do?

Published

1 hour ago

June 19, 2025

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👉Listen to Politics at Sam and Anne’s on your podcast app👈

On this episode – what advice is Sir Keir Starmer getting over Britain’s potential involvement in the Iran-Israel conflict?

There are reports the Attorney General’s legal advice to the PM is to limit what it does to protect its allies from attack – Sky News’ Sam Coates and Politico’s Anne McElvoy discuss the implications of that.

Plus, we hear Foreign Secretary David Lammy will get a meeting with his Iranian counterpart as part of a diplomatic push to prevent war. Foreign ministers from Germany and France will also join the talks in Geneva.

Politics

Judi Dench, Malala and Stanley Tucci join call for Starmer to ‘end UK complicity’ in Gaza

Published

1 hour ago

June 19, 2025

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Judi Dench, Malala and Stanley Tucci join call for Starmer to 'end UK complicity' in Gaza

Dame Judi Dench, Malala and Stanley Tucci are among another 100 famous names who have added their signatures to a letter urging Sir Keir Starmer to “end the UK’s complicity” in Gaza.

Sky News can exclusively reveal the Bond actress, Nobel Peace Prize winner and Conclave actor are among a host of public figures who have added their names to the letter.

At the end of May, Sky News revealed about 300 actors, bands, singers, activists and sportspeople signed the letter, organised by refugee charity Choose Love, calling on Sir Keir to suspend all UK arms sales and licences to Israel.

Dua Lipa, Benedict Cumberbatch and Gary Lineker were among the celebrities to also urge the PM to use all available means to ensure full humanitarian access and broker an immediate and permanent ceasefire.

Celebrities and activists also read out all the names of children killed in Gaza in front of parliament.

But three weeks later, they say nothing has changed.

Other new signatories include actors Florence Pugh and Russell Tovey, Dr Who star Ncuti Gatwa, singer Paolo Nutini, author Michael Rosen, musician Paul Weller, Little Mix members Leigh-Anne Pinnock and Jade Thirlwall, broadcaster Fearne Cotton, Game of Thrones actress Carice van Houten, Harry Potter actress Bonnie Wright and ex-England rugby captain Chris Robshaw.

The letter urges Sir Keir to “take immediate action to end the UK’s complicity in the horrors of Gaza”, and says children are starving “while food and medicine sit just minutes away”, in reference to Israel blocking aid into the territory.

It says 71,000 children under four are “acutely malnourished” and those who survive starvation “wake up to bombs falling on them”, with more than 15,000 children killed in the conflict so far.

“Violence stamped with UK inaction – flown with parts shipped from British factories to Israel – could be obliterating families in seconds,” the letter adds.

“You can’t call it ‘intolerable’, yet do nothing.

“Every moment this continues, is another moment children die on our watch.

“History is written in moments of moral clarity. This is one. The world is watching and history will not forget. The children of Gaza cannot wait another minute.

“Prime minister, what will you choose? Complicity in war crimes, or the courage to act?”

What has Starmer said and done about Gaza?

In September, the UK suspended about 30 arms export licences to Israel, but government export licensing figures from May show the UK approved licences for £127.6m worth of military equipment from October to December 2024 – more than the total between 2020 and 2023.

Since the first letter was sent, Sir Keir has called Israel’s actions in Gaza – both the blockade of aid and strikes – “appalling and intolerable”.

Some of his own MPs are pressuring him to take further action against Israel and call the 20-month war – which started when Hamas killed 1,195 people in Israel and took 250 hostage – a genocide, but he has not used those words.

On 10 June, the UK, Australia, Canada, New Zealand and Norway sanctioned far-right Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich over “repeated incitements of violence against Palestinian civilians”.

They are banned from entering the UK and are now subject to a freeze on UK assets and director disqualifications.

Last week, Sir Keir said more RAF jets, including Typhoons and air-to-air refuelers, were being sent to the Middle East after Israel and Iran attacked each other.

On Tuesday, Sir Keir told Sky News’ political editor Beth Rigby he is “worried about the impact” escalation between the two countries will have on Gaza.

Josie Naughton, co-founder and CEO of Choose Love, said: “Since we urged the government to end its complicity in the horrors of Gaza, more people have added their voice to our call. We cannot be silent while children are being killed and families are being starved.

“It took us 18 hours to read the 15,613 names of children known to be killed in Gaza. Every single one of them was someone’s whole universe. Every one of them deserved better.

“The situation is changing by the second, but until the UK government has halted all arms sales and licences to Israel, ensured that humanitarian aid can reach people starving inside Gaza and stopped the killing, they will not have done enough.

“History will remember how we acted in this moment. We beg Keir Starmer to end the UK’s complicity in these horrors.”

A government spokesperson said: “We strongly oppose the expansion of military operations in Gaza and call on the Israeli government to cease its offensive and immediately allow for unfettered access to humanitarian aid.

“The denial of essential humanitarian assistance to the civilian population in Gaza is unacceptable and risks breaching international humanitarian law.”

The spokesperson added: “Last year, we suspended export licences to Israel for items used in military operations in Gaza and continue to refuse licences for military goods that could be used by Israel in the current conflict.

“We urge all parties to urgently agree a ceasefire agreement and work towards a permanent and sustainable peace.”

Politics

South Korea to investigate fees of local crypto exchanges

Published

2 hours ago

June 19, 2025

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South Korea to investigate fees of local crypto exchanges

South Korea’s newly elected president Lee Jae-myung reportedly promised to reduce crypto trading transaction costs as part of his presidential campaign.