The Government has announced that it is sueing PPE Medpro, the company linked to Conservative peer Michelle Mone, for the full £122m it paid under the contract for gowns awarded via the VIP lane in June 2020.

The Company has said that it will “rigorously” defend the claim and accused the Department of Health and Social Care (DHSC) of a “cynical attempt to recover money from suppliers” who acted in good faith.

The company has been at the centre of a Westminster controversy, with Tory peer Baroness Michelle Mone taking a leave of absence from the Lords following allegations linking her to it.

Reports, denied by Lady Mone,have suggested the peer may have profited from the firm winning contracts worth more than £200m to supply equipment after she recommended it to ministers in the early days of the coronavirus pandemic.

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