Kemi Badenoch hits out at former Post Office chairman's claims government 'stalled' in Horizon row

The row over the Horizon scandal continues to deepen, ITV News Correspondent Olivia Guthrie reports

The business secretary has criticised the former Post Office chairman she sacked last month after he claimed a senior civil servant said he "stall" spending on compensation to subpostmasters ahead of the next general election.

Henry Staunton used an interview with the Sunday Times to suggest that the alleged request was linked to concerns about the cost of compensation heading into the election.

He also told the paper that Business Secretary Kemi Badenoch told him that “someone’s got to take the rap” for the Horizon scandal and that he discovered his sacking following a phone call from Sky News.

The claims prompted an immediate and strongly worded denial from the government, with Ms Badenoch also using social media to accuse the former chairman of "disgraceful misrepresentation" of the reasons he was ousted.

Mr Staunton, who took up the role in December 2022 following nine years as chairman of WH Smith, had told the newspaper: "Early on, I was told by a fairly senior person to stall on spend on compensation and on the replacement of Horizon and to limp, in quotation marks – I did a file note on it – limp into the election.

"It was not an anti-postmaster thing, it was just straight financials. I didn’t ask, because I said ‘I’m having no part of it – I’m not here to limp into the election, it’s not the right thing to do by postmasters’."

Ms Badenoch, in a lengthy post on X, said the comments were a "disgraceful misrepresentation of my conversation with him and the reasons for his dismissal.

"Henry Staunton had a lack of grip getting justice for postmasters. The serious concerns over his conduct were the reasons I asked him to step down.

"That he chose to run to the media with made-up anecdotes and a series of falsehoods, confirms I made the correct decision."

She said her call with Mr Staunton "was with officials" who took a "complete record".

"He has given an interview full of lies about our conversation during his dismissal."

Ms Badenoch is expected to make a Commons statement about the matter on Monday.

The scandal has been pushed into the public eye by a major ITV drama into the long legal fight by subpostmasters to get justice.

But many, including leading campaigner Alan Bates, have complained about unnecessary delays to victims in receiving compensation.

A Government spokesperson said: "We utterly refute these allegations.

"The Government has sped up compensation to victims and consistently encouraged postmasters to come forward with their claims.

"To suggest any actions or conversations happened to the contrary is incorrect. In fact, upon appointment, Mr Staunton was set concrete objectives, in writing, to focus on reaching settlements with claimants – clear evidence of the government’s intent.

"The Secretary of State asked Henry Staunton to step down as chairman of the Post Office because a change in leadership was needed."

More than 700 branch managers were prosecuted by the Post Office between 1999 and 2015 after faulty Horizon accounting software made it look as though money was missing from their shops.

Hundreds of subpostmasters and subpostmistresses are still awaiting compensation despite the Government announcing that those who have had convictions quashed are eligible for £600,000 payouts.

Shadow business secretary Jonathan Reynolds said: “The Horizon scandal is widely accepted to be one of the worst miscarriages of justice in British history.“Under no circumstances should compensation to victims be delayed and to do so for party political purposes would be a further insult to sub-postmasters.“

The Labour Party has called for all sub-postmasters to be exonerated and compensation paid swiftly so that victims can begin to draw this awful chapter to a close.

The Post Office and the UK Government Investments (UKGI) body also rejected any suggestion that either organisation had opposed a blanket exoneration for subpostmasters, after other claims by Mr Staunton to the newspaper.

A spokesman said: "Post Office is very aware of the terrible impact from this appalling scandal and miscarriage of justice.“We refute both the assertions put to us and the words and phrases allegedly used, and are focused on supporting the government’s plans for faster justice and redress for victims, as well as helping the inquiry get to the truth of what happened."

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