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Daily Mirror
Daily Mirror
National
Andrew Buckwell

'Crackdown' calls on firms as £12billion lost to Covid fraud - but no one faced court

Pandemic plunderers carried out a £12billion con on taxpayers – but no one has been brought to book.

Rogue traders claimed for subsidised meals never served under the Eat Out to Help Out scheme and for furlough cash to non-existent staff.

Labour business spokesman Justin Madders said: “It is hard to believe with the billions spent and the many stories of cash being wasted that no prosecutions have been brought.

“The Government needs to raise its game and crack down on fraudsters.”

Mr Madders spoke after John Glen, Economic Secretary to the Treasury, told him in a written reply: “To date there have been no prosecutions.

Ellesmere Port and Neston MP Justin Madders (Parliamentary TV)

“HMRC put in place a series of checks on claims before they were paid, so blocked those highly indicative of criminal activity.

“The Government and HMRC always knew they could be attractive to fraudsters and are taking tough action.

"Anyone who keeps grant money knowing they were not entitled to it, faces having to repay up to double the amount, plus interest and potentially criminal prosecution.”

Mr Glen said HMRC had been given £100million to fight fraud in Eat Out to Help Out, furlough and the Self Employment Support Scheme and there were 21 ongoing probes.

Money didn't always go where it was meant to (PA)

Chancellor Rishi Sunak famously served meals as he launched Eat Out to Help Out in August 2020.

Pizza chain Papa John’s is probing claims £250,000 was wrongly claimed by a franchise owner.

Others were held over the Bounce Back Loan scheme, with three in Birmingham being quizzed over a £145,000 payout.

The Commons Library estimated £11.8billion was lost to fraud and error in business support schemes.

In January Treasury minister Lord Agnew resigned and blasted “woeful” efforts to control fraud after the Government wrote off £4.3billion in fraudulent Covid loans.

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