A Labour government would create a Covid corruption commissioner to help recoup billions of pounds of taxpayers’ money that has been lost to waste, fraud and flawed contracts during the pandemic, it has been revealed.
Some £7.2 billion is believed to have been lost in fraud from Covid support schemes including from business loans and grants, furlough and “eat out to help out”, although the figure could be as high as £10.8 bilion, according to the House of Commons library.
Labour believes a lower estimate of £4.7 billion could be achieved if losses are contained.
The new commissioner would be given the power to bring together public agencies including HMRC, the Serious Fraud Office and the National Crime Agency to pursue “lost” public funds.
They would examine contracts line by line and would have to update parliament on their progress in clawing back money.
In her conference speech in Liverpool on Monday, Reeves will announce that Labour would review sentencing on fraud and corruption conducted against UK public services, as well as reform public procurement rules to include a strong “debarment and exclusion” regime for those complicit in fraud against the state.
“The cost to the taxpayer of Covid fraud is estimated at £7.2 billion with every one of those cheques signed by Rishi Sunak as chancellor and yet just 2 per cent of fraudulent Covid grants have been recovered,” Reeves will say.
“We will appoint a Covid corruption commissioner equipped with the powers they need and the mandate to do what it takes to chase those who have ripped off the taxpayer, taking them to court and clawing back every penny of taxpayers money that they can.
“That money belongs in our NHS, it belongs in our schools, it belongs in our police and conference – we want that money back.”
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