Matt Hancock: Health Secretary accused of ‘cronyism’ after sister's company awarded NHS contracts

Labour has said there are “serious questions to answer” after it was revealed that Health Secretary Matt Hancock has shares in a family company which has contracts with the NHS.

Mr Hancock declared in the MPs’ register of interests in March of this year that he now owns shares in company Topwood Limited, which specialises in secure storage, shredding and scanning of documents.

The Health Service Journal (HSJ) reported that the firm, which is owned by his sister, won a place on a framework to provide services to the English NHS in 2019.

It also reported that the Health Secretary did not declare his connection to the company in the relevant register of interests, a claim which has been rejected by the Government.

A Government spokeswoman said the Health Secretary had acted “entirely properly in these circumstances” and that all declarations of interest have been made “in accordance with the ministerial code”.

Meanwhile, a Whitehall source said that the Health Secretary has no active participation in running Topwood Limited and that neither he nor the Department of Health and Social Care (DHSC) were involved in awarding the contracts.

The source said that Mr Hancock had discussed with the department’s top civil servant, the Permanent Secretary, that he was to be gifted the shares in the firm before accepting them.

‘Another day and another scandal’

Commenting, the SNP’s Deputy Westminster leader Kirsten Oswald MP said: “Another day and another scandal at the heart of this Tory UK government. The stench of corruption and cronyism is unavoidable.

“First it was Greensill, then it was COVID contracts handed out to Tory donors, then it was the intervention from Boris Johnson at bin Salman’s request. Now we have the Health Secretary, yet again, handing out contracts like sweeties to friends - this time an NHS contract to his sister.

“The lack of transparency from the Health Secretary about his connections to Topwood Limited has rightfully left many questioning the legitimacy of the deal. We know that Tory cronyism is rife within Westminster therefore we demand clarity on this issue as a matter of urgency.

The SNP’s Deputy Westminster leader Kirsten Oswald MP said: “Another day and another scandal at the heart of this Tory UK government. The stench of corruption and cronyism is unavoidable.

“It's clear that Scotland faces a choice of two futures - Tory cronyism under the broken Westminster system, or the opportunity to build a fairer future as an independent country in a post-pandemic referendum.

“The issue at the election will be this: who has the right to decide Scotland’s future after the pandemic - people in Scotland or Boris Johnson? Only both votes SNP on 6 May can put Scotland’s future in Scotland’s hands."

‘It’s one rule for them’

It follows similar accusations of “cronyism” within Government by Labour, which is calling for a full inquiry into the Greensill Capital lobbying controversy.

Shadow health minister Justin Madders said: “It is now clear this Conservative Government has been infected with widespread cronyism and is unable to identify where the line is drawn between personal and departmental interests.

“It’s one rule for them, another for everybody else.”

A Government spokeswoman said: “Mr Hancock has acted entirely properly in these circumstances. All declarations of interest have been made in accordance with the ministerial code.

“Ministers have no involvement in the awarding of these contracts, and no conflict of interest arises.”

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