Starmer attacks PM and ‘loan shark chancellor’ over Covid fraud
Sir Keir Starmer has hit out at the government over the billions of pounds lost to Covid fraud, accusing Boris Johnson and Rishi Sunak of “turning a blind eye to scammers”.
The Labour leader also labelled Sunak today as the “loan shark chancellor” over his recently unveiled package of measures aimed to reduce household energy bills.
Around £5.8bn was lost to fraudsters across three Covid schemes – the furlough scheme, Self Employed Income Scheme and Eat Out to Help Out – with the government hoping to claw back £1.5bn.
It has also been speculated that the Department for Business, Energy and Industrial Strategy (Beis) are also expecting further billions of pounds to be lost to fraudsters taking advantage of the Covid Bounce Back Loan Scheme.
Business secretary Kwasi Kwarteng was criticised this week for saying that online fraud isn’t an everyday worry, despite around 4m people losing money to scammers last year.
Speaking in Prime Minister’s Questions (PMQs) today, Starmer said: “The business secretary casually suggests on TV, don’t worry – [fraud] is not real crime.
“There’s a crime gang in Manchester nicking cars and shipping them around the world, all financed by Covid loans from the taxpayer.
“What’s the chancellor’s response? Write-off £4bn in losses and and block an investigation by the National Crime Agency. His cabinet is turning a blind eye to scammers.”
Johnson said the government “despises those who defraud people”.
“We’re investing more into tackling fraud, but we’re also tackling the neighbourhood crime that is of such massive psychological damage to people in his country. Tackling knife crime, tackling burglary, tackling crime in the street,” Johnson said.
Starmer also hit out at the government for its move to give households £200 off energy bills, which will have to be paid back over the next five years.
The government’s plan will also see households given £150 that will not need to be paid back.
“The loan shark chancellor and his unwitting sidekick have picked up a buy now, pay later scheme. It leaves taxpayers in debt while oil and gas companies say they’ve got more money than they know what to do with,” he said.
“It’s one big scam and the British people are paying the price.”
The Prime Minister defended the government’s plan to ease the cost of living, calling it “faster, more efficient and more generous” than Labour has proposed.
Labour’s plan to ease the cost of living crunch would see the vast majority of people getting £200 off their energy bills, while the nation’s lowest-wage earners would receive a £600 discount.