UK government’s ‘VIP lane’ for PPE suppliers was unlawful, High Court rules

The UK government acted unlawfully in operating a special VIP lane for potential suppliers of personal protective equipment who had links with politicians or government officials, the High Court ruled on Wednesday.

In a ruling, Mrs Justice Finola O’Farrell found that a priority lane set up to collate bids for PPE, such as aprons, gloves and face masks for the health service, failed to comply with public contract regulations.

The rules stipulate that all potential bidders for PPE contracts should be treated equally. The judge found the government was unlawful to give two companies preferential treatment via access to the priority stream.

The legal challenge was brought by the campaign groups the Good Law Project and EveryDoctor, which claimed the government unlawfully awarded the contracts in the first wave of the pandemic between March and April 2020.

It centred on nine PPE contracts worth £700m to three interested parties to the litigation — Ayanda Capital, PestFix and Clandeboye. Clandeboye did not go through the VIP lane and the claims in relation to them were dismissed.

The two campaign organisations claimed that the VIP lane — which placed companies on to a fast track if they were referred by ministers, MPs or government officials — unfairly increased their chances of being awarded a contract.

The groups alleged in court hearings last year that a “substantial proportion” of the PPE procured under the deals was “unfit for purpose” for the NHS.

O’Farrell ruled that the VIP lane did confer preferential treatment on potential suppliers, which meant that offers were considered sooner than other rival bids.

The judge concluded that the so-called high priority lane was “in breach of the obligation of equal treatment . . . the illegality is marked by this judgment”. 

Angela Rayner, Labour’s deputy leader tweeted after the ruling that whilst NHS staff were going without PPE: “Tory politicians saw an opportunity to line their mates pockets.”

In court hearings last year, the judge was told that Ayanda, a financial services firm, was placed in the VIP lane after interventions by businessman Andrew Mills, a former member of the UK Board of Trade.

She also heard how PestFix, a pest control supplies company, was fast-tracked because a former PestFix director was an “old school friend” of the father-in-law of Steve Oldfield, chief commercial officer of the Department of Health and Social Care.

However, Mrs Justice O’Farrell concluded on Wednesday that even if PestFix and Ayanda had not been allocated to the VIP lane, “they would have been treated as priority offers” because of the substantial volumes of PPE they could deliver.

She said that “it is highly likely” that the deals would have been awarded to PestFix and Ayanda” and added that the VIP lane did “not play any material part in the award of contracts to PestFix or Ayanda”.

Jo Maugham, director of the Good Law Project, hailed the ruling as a victory. Julia Grace Patterson, chief executive of EveryDoctor, said: “The government must never again be allowed to conduct themselves in this manner during a national healthcare crisis” she said.

PestFix said in a statement it had been “completely vindicated” by the High Court. It added that the judge had found being placed in the priority lane was likely to have made no difference in the contract awards.

The health department said: “We are pleased the court has ruled that our industry call to arms was open and transparent.” It added: “All contracts underwent sufficient financial and technical due diligence.”

Ayanda said that the court had rejected any suggestion it was not an appropriate business to source PPE and had concluded that its offer justified priority treatment.

“We were doing the best we possibly could to help to respond to an unprecedented national emergency, and crucially, the court has not criticised the way we conducted ourselves in any respect.” it said.

Clandeboye have been contacted for comment.