POL catch up - 16/11/2022
Attendees
BEI
UKGI: Tom Cooper; Roshana Arasaratnam; Charles Donald
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: Sarah Munby; Carl Cresswell; Tom Taylor; David Bickerton; Rebecca Stockbridge; Eleanor
brooks; Nicol Brydon (PO)
Actions
No I Item Lead Detail Progress?
de Policy Review - BEIS Policy Consider ToR to ensure we have Complete — Tor
ToR room for manoeuvre doesn’t prevent but
original ministerial
steers were narrow
and focussed on policy
framework
2. Policy Review - BEIS Policy Consider if we can accelerate Advised that review
acceleration anything in Policy review space isn’t best route per
above
3. ‘Radical’ UKGI Set out what longer term/‘radical’
Solutions solutions could look like
(disintermediation; POL newco etc.)
4. Fixed budget BEIS Set out what it looks like if POL
Policy/Finance I remain within existing budgets (inc
& UKGI scrutiny of gap)
5. Short BEIS How can we support POL in short
Term/Immediate I finance/policy I term. eg. can we make use of admin
£ £; if so, how and what are trade-offs.
6. Board UKGI Develop contingency plan for board
Contingency resignations and losing top team
7. Process PO/BEIS Policy I How to convene these and build Reconvene w/c 28"”
towards decisions etc. ahead of POL board to
discuss items 4-6
8. CEO Pay UKGI (w/input I Handling options for SoS - needed
handling from BEIS urgently.
policy)
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1. POL finances
Background to pol finances (based off slides)
- Situation has deteriorated:
o We have to consider what's fundamentally behind the finance issues — symptom of
something bigger
o Business isnt viable currently — Q is whether we continue plastering over or attempt
something more radical
- Ran through slides and the various issues that have coalesced: Historical; Belfast exit;
Horizon replacement; Inquiry costs (risen from 20m to 60m in 6 months).
- Inquiry somewhat spooked POL in terms of need to respond comprehensively and £
associated
- Pol have explored self-help, they've cut some contingency
- POL provided numbers need to be taken with pinch of salt - gap could be smaller than
currently proposed (Eg. They’re still predicting poor performance at a level inconsistent with
comparators)
Discussion
- Ministers would reject out of hand request for significant support — eg 200m (consistent
/CST and AS)
- Human dynamic is key, mgmt team is very precarious
© POL board/directors wont be willing to stand in front of inquiry if they don’t get the
£ they think they need to fix issues
- Short term solution is needed to at least get us to POL policy review.
- Cost of delivering services are significant, to get to viable model you need low cost branches
and highly digitised service
o Reality is POL unlikely able to deliver this — better building something new (PoL
Newco etc.)
- TT questioned whether we would rationally invest in new IT system if this is a
business/business model we think isnt viable
©. TCnoted practically we have little choice as fujitsu are unwilling to support current
system
- Policy review lined up for summer consultation and mainly focussed on our asks of POL.
Question is filling the short term gap to buy time.
- Pol have little room for manoeuvre given the lumps figures noted at start (Belfast, inquiry
etc.) are fairly immovable
Solutions/Ideas
IRRELEVANT
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IRRELEVANT
- Could we persuade fujitsu to support longer and/or make some sort of comp £ gesture
(legally or politically pushed?)
o Legal route not viable given statute of limitations
o Support from Fujitsu on compensation £ doesn’t help unless HMT allow trade offs
(comp funded via reserves)
IRRELEVANT
2. POL Pay
Background
- Overall view was a need to turn the NR pay decision around - Inventive strategies will be
needed
- Careful handling required until all options are exhausted — ie don’t tell POL
- This makes the counterfactual very real in terms of contingency for board— underlines need
to identify a team that could step-in and/or what the contingency is
- Changing SoS’s mind wont be easy — ie hes made a principled decisions
- SoS has track record on ALB/CEO high earners and will be difficult to shift
- There is need to strengthen team and if poss keep team together — nick needs good team
underneath him (also helps contingency)
Solutions/ideas
- Will need to write options down — SoS preference
- Henry S could be right person to get in to discuss w/SoS
- Could pursue higher risk strategy and tell POL/Nick R
- Could test with SpAds (political team previously haven't been that bothered about prospect
of NR leaving)
- Could take very seriously - thanking sos for readout, outlining and doing the next steps —
show him what the contingency plan is
- Could seek to leverage KH — unclear his position here and he is due to meet NR soon
- Could we talk to head-hunters to add colour to next steps for SoS
o Risky talking to outsiders, we essentially know the situation and not too much more
value to be gained
- Could we use comms angle given SoS allergic to bad news stories