Iqbal Mohamed

I refer Members to my entry in the Register of Members’ Financial Interests. I thank the hon. Member for Stratford-on-Avon (Manuela Perteghella) for securing this important debate. The covid pandemic was an unprecedented crisis that placed immense strain on ruling parties worldwide. Few, if any, could dispute that rapid, decisive intervention was necessary to prevent an utterly catastrophic collapse in the British economy. However, acknowledging the scale of the challenge does not absolve the Government of responsibility for how that money was spent, how their support schemes were designed and implemented, or how recklessly public funds were safeguarded. While some degree of waste and fraud is inevitable in a crisis, the scale of loss during the pandemic was not inevitable, but the result of systemic failure within the UK Government. That failure remains unchecked under the current Labour Administration. The Office for Budget Responsibility estimates that covid support measures totalled somewhere between £169 billion and £192 billion. That included a variety of schemes, from furloughing individuals to protect them from unemployment to grants and loans intended to help businesses stay solvent. However, the support system simply did not work for nearly 3.8 million freelancers and self-employed workers. Many were excluded altogether from financial assistance through rigid eligibility criteria, outdated data or the blunt distinction drawn between modern forms of work. That said, much of the covid-19 spending—for those to whom it was available—undoubtedly saved jobs and prevented mass insolvency. Departments and public bodies were forced into reactive policymaking, scrambling to design schemes in real time, often without effective oversight or proper safeguards against abuse. Nowhere was that more evident than in the scale of fraud committed against the Government support schemes. According to the independent covid counter-fraud commissioner’s final report, published last month, some £10.9 billion of taxpayer money was lost to fraud and error across covid support schemes. Of that sum, only £1.8 billion has been recovered so far. The remainder, as the report makes clear, is likely beyond recovery, with fraud prevention efforts identified as falling short across Government. The causes of this failure are well documented in the aforementioned report, but one particular point that stuck out to me was that banks were instructed to suspend their usual due diligence, despite voicing explicit warnings about heightened risks of fraud. Better design was possible. Britain appears to stand alone in the G7 on the scale of fraud experienced during covid. Other countries managed to move quickly while still embedding stronger checks. The lesson is not that speed and scrutiny are incompatible, but that the Government of the time chose not to prioritise the latter. That so few consequences have followed these failures only deepens public cynicism with democratic political processes. Keir Starmer was elected on a—