BEIS0001062 - Email chain from Minister Hollinrake to Secretary of State, David Bickerton and Brooks-White re: Submission: Post Office financial issues

Evidence on official site

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From: Minister HOLLINRAKE (TRADE)[/O=EXCHANGELABS/OU=EXCHANGE
ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=3F131AB4A1E443368F392D196C,
626FAE-5B2AC667-8A]

Sent: Thur 09/03/2023 1:40:49 PM (UTC)

To: Of State INTERNATIONAL TRADE
} Bickerton, David (Business Sectors DG
I Brooks-White (Jobshare}””
MENT

“y; Minister HJDDLESTON
Minister GHANI
Perm SEC (TRADES

Ce:

Heath, Daniel (Corporate Services -

‘araty, Helena

Summers, Isabel (Corporate Services -
“} Wones, Eleri

“}; Cooper, Tom -

Arasaratnam, Roshana -

Barnett, David -

Frameworks - Consumer & ComI
Minister HOLLINRAKE (TRAD!

Subject: RE: Submission: Post Office financial issues
Hi all,

SpAds are yet to review this but given the submission is to note, I’m going to readout with Minister
Hollinrake’s views now and SpAds office can come back on the chain with any feedback.

Minister Hollinrake noted and agreed with this submission, and commented that at the recent
network strategy meeting with POL, ‘/ was clear of the need a short, medium and long term
plan to get the govt subsidy to a sustainable position, likely to be around £100m/annum
compared to the current c£250m average. This will require some initial funding for
redundancies etc, both at directly managed branch level and senior management tier ’.

Best wishes,
Cora
Pes Cora Sweet I Private Secretary to Kevin
a Hollinrake MP, Minister for Enterprise,

Markets and Small Business

Department for Department for Business and Trade I

Business & Trade Old Admiralty Building, London, SW1A
2DY
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From: Secretary Of State INTERNATIONAL TRADE (TRADE) <:
Sent: 24 February 2023 13:16

To: Bickerton, David (Business Sectors DG Office)!
Minister
Minister HUDDLESTON (TRADE) I
I Minister HOLLINRAKE
Perm SEC (TRADE); Second PERM SEC (TRADE)
Strategy Unit

rooks-White

MSD Director's Office:
ctors - Services Directorate}

Daffu, Bal - UKGI, FBS&S Directo
Lisa (Market Frameworks - Consumer & Competition Policy) ¢
Subject: RE: Submission: Post Office financial issues

Hughes,

Many thanks both.

SOS has now formally agreed to delegate Post Office business to Min Hollinrake, so I will hold off
sending any further subs to her.

If there are decisions that require SOS steer, for procedural reasons or due to high importance, then
of course very happy to take those, just let me know as needed.

Best,
Ed

Ed Moore I Private Secretary (interim) to the Secretary of State for Business and Trade
Department for Business and Trade I Old Admiralty Building I London SW1A 2DY
Tel:

GRO.

From: Bickerton, David (Business Sectors DG Office):
Sent: Thursday, February 23, 2023 5:04 PM

To: Brooks-White (Jobshar
(TRADE) ¢ GRO

“Secretary Of State INTERNATIONAL TRADE

Minister INVESTMENT (TRADE)

' Minister HUDDLESTON (TRADE)
3 Minister HOLLINRAKE (TRADE)

+ Second PERM SEC (TRADE)

Minister GHANI (TRADE):
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~~"; Spad SOS (TRAD:

Barnett, David - UKGE
FBS&S Director.
Competition Policy):

Subject: RE: Submission: Post Office financial issues

I mentioned in my home meeting today. I think there needs to be a political discussion with CST to
agree (or not) that HMT will provide more funding (in the immediate short term allowing DBT to use
some ex-BEIS admin underspends the FY) in the absence of an agreed plan for the future of Post
Office because Ministers’ view is that now is not the time to be bringing the future of the Post Office
into public arena.

SoS’s initial view was “that’s probably right”. I also suggested she delegate to Kevin H.

The timing pressure is that we need to sort out the money (when we can have ex-BEIS money rather
than a pressure on DBT’s budget) this FY so I would be very grateful if we could put it up to SoS please

Kind regards

David
David Bickerton
ps Director General, Business Sectors
% :
GRO
Department for 1, Victoria St, London SW1H OET
Business & Trade www.gov.uk/beis I https://twitter.com/beisgovuk

For diary queries and availability please contact my EA,

From: Brooks-White (Jobshare}, GRO
Sent: Thursday, February 23, 2023 4:21 PM
To: Secretary Of State INTERNATIONAL TRADE (TRADE)
Gri Trad GRO

inister GHANI (TRADE

GRO } Minister
Minister HUDDLESTON (TRADE)
inister HOLLINRAKE

~~ Heath, Daniel
cnntnneinenen GRO I Raraty, Helena (BEIS)
; Summers, Isabel (Corporate Services - Finance)
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Wones, Eleri (BEIS,
; Arasaratnam, Roshana - UKGI ¢
affu, Bal - UKGI
hes, Lisa (Market Frameworks - Consumer &

‘Cooper, Tom - UKGI

Barnett, David - UKGI
FBS&S Director
Competition Policy)
Subject: RE: Submission: Post Office financial issues

OFFICIAL-SENSITIVE: COMMERCIAL
Hi Ed

Fully understand that there isn’t a clear/essential decision here. We wanted to make sure that SoS
was aware of the issue given the potential impact into future years budgets, and risk to the company
if a positive course of action isn’t taken. We were also seeking confirmation that SoS is happy that we
continue with the approach we are currently taking. I wouldn't be surprised if this didn’t come up in
Ministerial KITs and/or further meetings with seniors, so wanted to make sure she was aware and
content with the steps being taken before that happens. I haven't seen a read out from the meeting
that David Bickerton had with SoS, do you think she is sufficiently sighted for now? If you would
prefer not to share with her now, could you confirm that you are happy that we continue the work,
and that we will provide a more full note in March when we next hear from Post Office?

Kind regards

Beth

Beth White and Eleanor Brooks

OFFICIAL-SENSITIVE: cOMM ERCIAL
From: Secretary Of State INTERNATIONAL TRADE (TRADE);
Sent: 23 February 2023 15:17

Second PERM SEC (TRADE)
}; Strategy Unit
kerton, David
(Business Sectors DG Office) <
Cc: Creswell, Carl (Business Sectors - Services Directorate
(Corporate Services - Finance

3 Heath, Daniel

-. ‘araty, Helena (BEIS)
Summers, Isabel (Corporate Services - Finance)
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kKGI

- UKGI<.
hes, Lisa (Market

Barnett, David - UKGI
FBS&S Director
Competition Policy) ¢
Subject: RE: Submissi

Many thanks Beth. Can I check if it’s essential SOS takes this now? We’d ideally prefer to take advice
once there’s a firm decision, rather than doing iterative advice. But do let me know if you can’t
progress without a decision now.

Many thanks,

Ed

Ed Moore I Private Secretary (interim) to the Secretary of State for Business and Trade
Department for Business and Trade I Old Admiralty Building I London SW1A 2DY

Sent: Thursday, February 23, 2023 1: o
To: Secretary Of State INTERNATIONAL TRADE (TRADE)

Minister

.

stratepy Un
Bickerton, David (Business Sectors DG Office)
Ce: Creswell, Carl (Business Sectors - Services
(Corporate Services - Finance ~ GRO. ‘araty, Helena (BEIS)
“} Summers, Isabel (Corporate Services - Finance)

5 Wones, Eleri (BEIS)
saratnam, Roshana - UKGI+
P Daffu, Bal - UKGI
ughes, Lisa (Market

Heath, Daniel

>; Cooper, Tom - UKGI

Competition Policy):
Subject: Submission:

OFFICIAL-SENSITIVE: COMMERCIAL
Ed, cc Cora in Minister Hollinrakes Offices, PS’ in SPADS and Perm Secs office

As discussed when I called, please find attached a submission for the Secretary of State on Post
Office’s financial issues to provide her with detail on this issue. David Bickerton will likely raise in his
meeting today with Secretary of State. We expect Post Office to shortly ask for a minimum of £160m
support during this SR period. Subsidy control rules mean that if underspend were identified this FY,
up to £38.5m could be funded, further funding would have to be identified for additional support for
23/24 and 24/25 FYs. We are in active conversation with HMT colleagues over this issue and further
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advice will be provided after we have received the formal request from Post Office after its 9 March
Board.

We are seeking that the Secretary of State is aware of this issue and agrees that we continue working
on this issue and will provide further advice in due course.

We would like this by 28" Feb when we are next due to engage with HMT colleagues.
Kind regards

Beth

Beth White and Eleanor Brooks
Deputy Director (Jobshare), Post Office Policy and Compensation
Department for Business and Trade

OFFICIAL-SENSITIVE: COMMERCIAL