PPE Medpro Firm Linked to Michelle Mone Owes Multimillion Pound Tax Debt Amid Scandalous Collapse

A company closely tied to former Conservative peer Michelle Mone is facing scrutiny following revelations of massive debts and allegations of supplying unusable personal protective equipment during the pandemic. PPE Medpro, overseen by Mone’s husband, Isle of Man-based businessman Doug Barrowman, entered administration on 30 September just prior to a high court judgement determining it had breached a major government contract.

Mrs Justice Cockerill ruled that PPE Medpro failed to meet the legal requirements to provide 25 million certified sterile surgical gowns to the Department of Health and Social Care (DHSC), meaning the firm must repay the full £122 million it received. Adding interest to the ruling, the administrators—Forvis Mazars—listed total debt to the DHSC as £148 million, with interest accruing at 8 per cent per annum since late 2020.

Documents filed at Companies House have now brought to light £39 million in outstanding tax owed to HM Revenue & Customs, marking the first public confirmation of such a demand on this scale for a pandemic era contractor. The nature of the tax appears to relate to corporation tax rather than payroll liabilities such as PAYE, national insurance or VAT.

PPE Medpro’s total debts now stand at £188 million. These include the £148 million owed to the DHSC, £39 million in unpaid tax, £207,000 owed to legal counsel, and £1 million to an Isle of Man entity linked to Barrowman that placed the company into administration. The administrators’ statement suggests that relatively few individuals or entities received the majority of company funds.

In an interview aired by the BBC, Mone admitted that she and Barrowman had previously lied about their involvement with PPE Medpro. The firm’s fortunes and contracts were secured after Mone approached then Cabinet Office minister Michael Gove in May 2020, propelling the company through the government’s high-profile ‘VIP lane’ that prioritised bids from those with political connections.

The Guardian previously revealed that Barrowman received at least £65 million in profit from PPE Medpro before transferring £29 million to an offshore trust established to benefit Mone and her children. After the company missed a government-mandated repayment deadline in October, Health Secretary Wes Streeting vowed to pursue all available means to recover lost public funds, though the government may face legal barriers as most assets appear to have been depleted prior to administration. The administrators remain open to future litigation targeting unspecified third parties as recovery efforts continue.