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From: "Minister HOLLINRAKE (TRADE)" <_
Sent: Tue 18/04/2023 5:18:31 PM (UTC)
To: “Briant, Will (BELS)" reswell, Carl (Business Sectors - Services
Directorate)"
Ce: "ed.baird “}Stockbridge, Rebecca (BEIS)"
(TRADE)"
Directorat , "Minister HOLLINRAKE (TRADE)"
ecretary Of State INTERNATIONAL TRADE (TRADE)"
I
Subject: Readout - Minister Hollinrake & Post Office CEO monthly meeting 18.04.2023
Hi team,
Thank you for preparing the briefing and supporting in the meeting. Please find below my readout — let me know if
you have any edits.
Details: 12:30-13:00, Minister Hollinrake’s meeting room, OAB
Attendees:
Minister Hollinrake (KH)
Nick Read, CEO POL (NR)
Richard Taylor, Group Chief Retail Officer, POL (RT)
Tim McInnes, Director of Strategy and Transformation, POL (TM)
Carl Creswell, Director Business Resilience, DBT (CC)
Will Briant, Senior Policy Advisor, DBT (WB)
Lorna Gratton, Director, UKGI (LG)
Cora Sweet, Private Secretary
MEETING STARTS
POL Funding/ Finances
© NR raised the fact that the Perm Sec had made the decision to withhold the funding, and asked for KH’s
opinion. KH said that he, HMT and Perm Sec are keen to see a plan from POL about its funding ask, and know
that the Horizon Replacement is a concern.
© NR said that the funding ask won't be ready / approved by the Board until June. The main issues are:
* Horizon replacement — POL underestimated the cost of this;
* Inquiry costs — the inquiry is overrunning and timescales are uncertain; and
* Compensation costs, though POL has more of a handle on this.
© NR said that as DBT is withholding funding to POL, POL will need to be careful if asked at the Inquiry about
whether POL is now out of contract with the Department. CC said that DBT holds a different view on this, and
DBT may seek legal advice on this. LG explained that UKGI and DBT officials are working together to provide the
reassurance to the Perm Sec about cost controls.
* KH asked how POL is going to try to find a number that they are comfortable with for the cost of replacing
Horizon. NR said that they are considering more of a modest approach rather than something transformative
e.g. not rolling it out to all 11,500 branches, and opting for the minimum viable product. Another issue is that
we don’t know what the future of POL will be and designing a system that will work for POL in decades to come
is difficult.
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© NR said that another pressure was the Inquiry, which is going to scrutinise the rollout of the Horizon
replacement; POL needs to ringfence/ compartmentalise this piece of work.
* TM confirmed that POL will have a formal funding request in June, and in the meantime engagement can
continue. LG confirmed that what UKGI needs is cost and time assurance for this funding request, not just
quality assurance, which is what she’s seen so far.
Banking hubs
* KH asked NR his views on co-locating banking hubs in existing post offices, and NR said that this idea is more a
‘phase two’ one — need to make the case for banking hubs first and make that credible to the banks before
doing this.
© RT said this is an opportunity for a more mixed, viable interesting network. NR agreed and said there’s
opportunity for some post offices to have different offers e.g. cash and banking, parcel and travel, all in one
place.
© RT invited KH to visit the Banking Hub in Cottingham, KH confirmed he’d like to visit and could do it on the
same day that he’s visiting Hull and York (2 June).
Compensation and parity across schemes
e NR raised concerns that POL currently does not have a contract with DBT to deliver the GLO work on disclosures,
plus the disclosure asks have been disproportionate and not the same as the other schemes. CC confirmed that
the contract is nearly ready, but is being reviewed by legal advisors. CC acknowledged the issue with the
disclosure and said DBT had brokered a solution with Freeths which should resolve the issue.
e NR said that he feels pressure to prioritise GLO work over other work e.g. due to resource re-allocation, which is
not appropriate. LG said that we need to make sure the schemes are delivering similar outcomes for similar
detriments, and UKGI/ DBT should look into commissioning a third party to do some sampling which could be
anonymised. KH supported this idea, and said the Independent Advisory Board could review this.
e NR said he’s concerned about the Independent Advisory Board as some members are saying that the Historical
Shortfall Scheme might need to be unpicked and started again. The Independent Advisory Board should be
handled carefully as there are reputational risks for all parties involved if this happens. LG said that the Board
should be solutions-focused.
MEETING ENDS
Cora Sweet I Private Secretary to Kevin Hollinrake.MP. Minister for Enterprise, Markets and Small Business
Department for Business and Trade I Tel: GRO +] E-mail)