PPE Medpro, a company once at the center of the UK’s scramble for personal protective equipment during the Covid-19 pandemic, now finds itself under intense scrutiny as new documents reveal a staggering £39 million tax debt owed to His Majesty’s Revenue and Customs (HMRC). This revelation comes on top of an already eye-watering £148 million the firm was ordered to pay back to the government for breaching a contract to supply medical gowns—gowns that ultimately failed to meet crucial sterility certifications, according to court documents reviewed by BBC and The Guardian.
The company’s financial woes became public knowledge on November 5, 2025, when filings by PPE Medpro’s administrators laid bare the extent of the debts. The filings, reported by The Guardian, show that PPE Medpro’s total liabilities have ballooned to £188 million, encompassing the £148 million owed to the Department of Health and Social Care (DHSC), the £39 million in unpaid tax, £207,000 to the company’s lawyers, and a further £1 million to an Isle of Man entity linked to the company’s leadership.
PPE Medpro, established in May 2020 at the height of the pandemic, was the brainchild of a consortium led by Doug Barrowman, the Isle of Man-based businessman and husband of Conservative peer Baroness Michelle Mone. The company was able to secure lucrative government contracts—£122 million for surgical gowns and another £80 million for face masks—after Baroness Mone approached then Cabinet Office minister Michael Gove. These contracts were processed through the now-infamous “VIP lane,” a fast-track channel for suppliers with political connections, according to The Guardian.
The saga took a dramatic turn last month when Mrs Justice Cockerill ruled that PPE Medpro had breached its contract with the DHSC by supplying 25 million sterile surgical gowns that were ultimately deemed unusable. The court ordered the company to repay the full £122 million it received, with interest pushing the total owed to the DHSC to £148 million as of October 2025. That interest continues to accrue at a rate of 8% annually, as noted in the administrators’ filings.
For many, the story of PPE Medpro is emblematic of the chaos and controversy that swirled around government procurement during the pandemic. Hospitals were desperate for protective gear, and the government, under immense pressure, turned to new suppliers—sometimes with little due diligence. PPE Medpro’s contracts, awarded in record time and with minimal vetting, have since become a case study in the risks of such emergency measures.
But the financial fallout doesn’t end with the government’s claim. The administrators’ report, as highlighted by BBC and The Guardian, also lists HMRC as a major creditor, owed £39 million in what appears to be corporation tax on the company’s profits. Interestingly, the filings note that no money is owed for PAYE, national insurance, or VAT, suggesting the tax liability is tied directly to the profits PPE Medpro generated during its brief but lucrative existence.
Despite the company’s massive debts, the administrators estimate that only £672,774 is available for unsecured creditors—an amount that pales in comparison to what’s owed. This leaves government departments and the tax authorities facing a significant shortfall, with little hope of recovering the full sums.
The financial maneuvering behind the scenes has drawn further attention. Doug Barrowman, in a 2023 interview with BBC, admitted he was the ultimate beneficial owner of PPE Medpro and that he personally received over £60 million in profits. According to The Guardian, Barrowman was paid at least £65 million, with £29 million subsequently transferred to an offshore trust set up for the benefit of Baroness Mone and her three adult children. In a December 2023 interview, Baroness Mone confirmed, “millions of pounds from those profits were put into a trust from which she and her children stood to benefit.”
Adding another layer of complexity, an Isle of Man company linked to Barrowman, Angelo (PTC), holds a secured debt of £1 million to PPE Medpro. This secured debt means that Angelo (PTC) is likely to be repaid in full before the government or other unsecured creditors see any money, as confirmed by the administrators’ report. Filings in the Isle of Man show that the beneficial owner of Angelo (PTC) is Knox House Trust, which is part of Barrowman’s Knox group of companies.
Attempts by journalists to reach Arthur Lancaster, the accountant listed as holding PPE Medpro’s shares, and a spokesperson for Doug Barrowman have gone unanswered, leaving many questions about the company’s internal finances and the fate of its profits.
The government, for its part, has not given up. Health Secretary Wes Streeting has been unequivocal, telling BBC and The Guardian, “We will pursue PPE Medpro with everything we’ve got to get these funds back where they belong—in our NHS.” Yet, the process is far from straightforward. With the company in administration and most of its funds apparently distributed or tied up in trusts, legal obstacles abound. The administrators have indicated they may pursue legal claims against unnamed “third parties” in hopes of recovering additional funds.
The controversy has also shone a harsh light on the political connections that helped PPE Medpro secure its contracts. Baroness Mone, appointed to the House of Lords by David Cameron in 2015, and Barrowman denied for years that they were involved in PPE Medpro, only admitting their roles in late 2023. Their public admission followed months of reporting by The Guardian and mounting public and political pressure.
Meanwhile, PPE Medpro’s consortium partners have expressed willingness to negotiate a settlement with the government. On October 11, 2025, a spokesman stated, “the consortium partners of PPE Medpro are prepared to enter into discussions with the Government, via the administrators, to reach a possible settlement.” However, they claim the government has not responded to this overture.
For now, the fate of the millions owed by PPE Medpro remains uncertain. With only a fraction of the funds available to pay creditors and the government vowing to pursue every avenue for recovery, the story is far from over. What’s clear is that the fallout from pandemic-era procurement decisions continues to reverberate, with questions about accountability, transparency, and the use of public funds still demanding answers.
As the administration process unfolds, observers will be watching closely to see whether the government can claw back any of the missing millions—or whether, in the end, taxpayers will be left footing the bill for a deal gone disastrously wrong.
