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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.

More on Covid-19

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.”

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Angela Rayner: ‘Victim of misogyny’ or ‘freeloading’ deputy prime minister?

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Angela Rayner: 'Victim of misogyny' or 'freeloading' deputy prime minister?

To her most savage critics – from Tories to the far left – she’s “Rotten Rayner”, a tax evader, freeloader and a “low life… on the make”.

To her trade union friends, she’s a victim of misogyny who right-wing politicians are attempting to hound out because she’s working class.

And after her tearful interview on Sky News, even among some of her political opponents there’s a degree of sympathy for Angela Rayner too.

Politics latest: Why the deputy PM nearly resigned

But amid the rancorous debate among MPs about whether she should stay or go, there’s one part of her defence that is attracting scepticism from friends and foes.

That’s her claim that she was initially given duff advice by a solicitor. Really? If she has evidence to substantiate that, she may be in the clear, though there’d no doubt be accusations of an establishment stitch-up.

But if not – and the city grandee who’s the PM’s ethics adviser – the Eton and Oxford-educated baronet Sir Laurie Magnus – rejects her defence, she’ll almost certainly have to go.

And with her resignation – or sacking – would almost certainly go her hopes of succeeding the increasingly unpopular Sir Keir as Labour leader, despite her popularity with the party’s activists.

When she arrived for Prime Minister’s Questions, just half an hour after her bombshell confession, the Labour high command placed a collective arm around her.

Sir Keir Starmer, who told MPs he was proud to sit alongside a deputy PM from a working-class background, put his hand on her left shoulder.

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Beth Rigby on Angela Rayner’s uncertain future

Badenoch misses an open goal…

Lucy Powell, the leader of the Commons, sitting the other side of the beleaguered Ms Rayner, did the same on her right shoulder.

Rachel Reeves, who also knows all about being beleaguered and shedding tears in public, looked across at her and smiled sympathetically.

If Labour feared a brutal PMQs onslaught from Kemi Badenoch, they needn’t have worried. “Why is she still in office?” the Tory leader began. So far, so good.

“If he had a backbone he would sack her,” she said in the second of her six questions. But that was it. “But let us get back to borrowing,” she continued.

Inexplicably, the Tory leader ploughed on with her pre-prepared questions on government borrowing. Labour MPs couldn’t believe their luck. Cue numerous jokes about missed open goals.

After another dud Kemi-Kaze performance at PMQs, some MPs were even speculating that Ms Rayner’s survival prospects – slim, at best – remain better than those of the Tory leader.

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Badenoch calls on PM to sack Rayner

…but others go in studs up

But in the cruel world of social media, Ms Rayner was not spared a vicious onslaught from critics from across the political divide. You’d better keep your phone switched off, Angi.

From the spiky shadow foreign secretary Priti Patel, Ms Rayner was “the property tax dodging, freeloading deputy prime minister” who had “finally admitted breaking the law and evading paying taxes owed”.

There was more. “She says that she’s sorry,” said punchy Priti. “But she’s only sorry that she was caught out. Rotten Rayner should go.”

Nadhim Zahawi, who was sacked as Tory chairman in 2023 after an inquiry found he failed to disclose an investigation into his tax affairs, added: “Did you think about my children Angela Rayner?

“Breaks my heart seeing anybody distressed about their children, but the hypocrisy really does hurt.”

But it wasn’t just Tories – who let’s not forget were denounced as “Scum!” by Ms Rayner back in 2021, in what she described as “street language” – who were brutal.

The acerbic George Galloway declared: “She’s a lowlife”. For good measure, he claimed she was “on the make” and on “Supermarket Sweep, piling her trolley full”.

Read more:
Rayner admits she should have paid more stamp duty
Rayner came out fighting in Sky interview
Rayner’s tax affairs statement in full

However, from the trade union movement, which campaigned hard for the DPM’s workers’ rights legislation, there was unequivocal support.

TUC general secretary Paul Nowak told Sky News: “Angela Rayner comes under sustained coverage because she’s a working-class woman in a way that frankly Nigel Farage, leading members of the shadow cabinet, never would.

“I think there’s a real heavy dose of misogyny when it comes to Angela.

“I wouldn’t want to see a hounded out of an important role by right wing politicians and the right wing media who frankly can’t handle the fact that a working class woman is our deputy prime minister.”

There was sympathy from one party leader, Sir Ed Davey of the Liberal Democrats, who said that as a parent of a disabled child “I know the thing my wife and I worry most about is our son’s care after we have gone”.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Shortly after PMQs, opening a Tory debate on, yes, property taxes, shadow chancellor Sir Mel Stride opted for ridicule and mockery. “I’m absolutely certain that the deputy prime minister had a good recess,” he began.

“We saw many photographs of her down at the seaside, just off the coast in a rubber dinghy, rather like many of the other photographs over the summer given the reckless policies this government has towards illegal migration.

“She was probably celebrating the acquisition of another property for her property empire, but perhaps also slightly tinged with that nagging doubt as to whether she had indeed paid enough stamp duty.

“Well, we’ll get to the bottom of that in due course.”

Quite so, Mel. We will.

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Angela Rayner’s tax affairs interview in full

A fight for survival

Let’s also reflect that on Monday Sir Keir Starmer proudly announced: “Phase two of my government starts today.” On Tuesday, he informed MPs, he was “speaking at length” to Ms Rayner. Must have been awkward.

And on Wednesday, the PM had to watch her tearful confession, just minutes before facing MPs in the Commons.

Not a great start to phase two, prime minister. Nor for his embattled and tearful deputy, who’s now fighting for political survival.

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Can Starmer live without Rayner?

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Can Starmer live without Rayner?

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

The government minister responsible for housing didn’t pay enough tax on her house.

Sam and Anne let Angela Rayner’s admission sink in on this episode – as they wonder how much government business is on hold as a result.

The independent ethics adviser Laurie Magnus’ view on how she took inaccurate legal advice could be public within days – presumably that means the cabinet reshuffle has to wait until the Deputy Prime Minister knows her fate.

Never mind what else it might mean for the early days of Keir Starmer’s “phase two”.

But, whatever the outcome, is it safer for Starmer to keep Angela Rayner in a job?

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DIY retirement savers in Australia trim crypto nest eggs by 4%

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DIY retirement savers in Australia trim crypto nest eggs by 4%

DIY retirement savers in Australia trim crypto nest eggs by 4%

Australia’s tax office reports self-managed retirement funds have 4% less crypto than last year, but one crypto executive says the number is likely “undercooked.”

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