A fresh financial blow has hit PPE Medpro, a firm connected to Baroness Michelle Mone, as newly released documents reveal a further £39 million owed to HMRC, piling onto the already staggering amount the company is due to repay.
PPE Medpro Faces Fresh £39 Million Tax Demand Amid Ongoing Scandal
New filings from administrators confirm that PPE Medpro, the firm linked to Tory peer Baroness Michelle Mone and her husband, Doug Barrowman, is now facing an additional £39 million tax bill. This comes on top of the £148 million it has already been ordered to repay the government.
The embattled company, which came under intense scrutiny during the pandemic for supplying defective medical gowns, entered administration just last month.
But despite its financial collapse, Whitehall has insisted it is “absolutely not” giving up on recovering the full amount owed.
“On Friday, October 11, it was made clear that the consortium partners of PPE Medpro are prepared to enter into discussions with the Government, via the administrators, to reach a possible settlement.
Yet, very disappointingly, the Government has made no effort to respond or seek to enter into discussions,” a spokesperson stated.
Mounting Debt and No Sign of Settlement
The company has only £672,774 available for unsecured creditors, a figure that barely scratches the surface of the total debt.
Court records show the initial order was for nearly £123 million, with 8% annual interest stacked on top. And now, HMRC has stepped in with a new demand of £39 million — further tightening the noose.
A Financial Timeline:
| Event | Amount | Details |
|---|---|---|
| Original repayment order | £123 million | For faulty gowns delivered during COVID |
| Interest on original amount | 8% per annum | Compounds the financial liability |
| New HMRC tax demand | £39 million | Revealed in latest administrator filings |
| Total known debt | £148m + £39m | £672k available for unsecured creditors |
Government Stands Firm Amidst Talks Offer
Despite an open invitation from the consortium behind PPE Medpro to engage in dialogue via the administrators, ministers have so far remained silent.
The offer was first floated publicly in mid-October, but officials have not responded to a decision the company describes as “very disappointing.”
Behind the scenes, sources indicate the government is unwilling to soften its stance, especially amid growing public anger over pandemic-era contracts awarded without open competition.
PPE Medpro supplied 25 million gowns that were later deemed unusable by the NHS, prompting the Department for Health and Social Care to launch a successful legal challenge.
The unfolding situation has once again thrown the spotlight on the murky world of VIP fast lanes used during the COVID crisis, raising fresh questions over transparency and accountability.
Baroness Mone has previously denied any wrongdoing. However, she and her husband remain central figures in the controversy surrounding PPE Medpro’s rise and rapid fall.
The pressure is now on both the company and the government. Can a settlement be reached, or will taxpayers be left footing the bill?
With millions at stake and public trust on the line, the coming weeks could be decisive.
