BEIS0001114 - Email from Permanent Secretary to David Keenan Re: Draft letter SoS to CX- Post Office Limited dated 29 November 2017

Evidence on official site

BEIS0001114
BEIS0001114

From: Permanent Secretary!

Sent: Wed 29/11/2017 4:31:07 PM (UTC)

To: 3 Clark

Ce: } Taylor Tom (Finance and
Deeks Caleb (Policy Delivery & Private
Sparks Leah (Finance &

Subject: RE: Draft letter SoS to CX - Post Office Limited

Attachment: FW: Letter from Secretary of State Greg Clark to Chairman Tim Parker

Attachment: FW: POST OFFICE FUNDING; Greg Clark to CST, 25 July

David — Henry in our office has kindly sourced the letters referred to in my comments. See attached —
which will hopefully make things quicker.

Julie
Fad Julie Dickason
Department for Chief of Staff to Alex Chisholm Permanent Secretary

Business, Energy
& Industrial Strategy

1 Victoria Street London SW1H OET

www.gov.uk/beis I twitter.com/beisgovuk

The Permanent Secretary's box closes at 12pm each working day.
Advice on working with the Permanent Secretary's office can be found here.

From: Permanent Secretary

Sent: 29 November 2017 16:30

To: Keenan David (Finance); Clark MPST

Cc: Ridgwell Angie (DG FCS); Taylor Tom (Finance and Portfolio); Deeks Caleb (Policy Delivery &
Private Office); Sparks Leah (Finance & Portfolio); Maghrabi Syed (Finance); SpAd Clark MPST; Hall
Glenn (MPST); Nolan Ruth (Finance & Portfolio); Cao Sally (Finance); Permanent Secretary; James

MPST

Subject: FW: Draft letter SoS to CX - Post Office Limited

Importance: High
David, Chris

Alex just discussed with SoS and has asked for the following changes to be made to the letter so that
SoS can review it when he lands. Grateful if you could liaise with Chris on timing, but important this

issues tonight.
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David — to note there are a few points for you to check please.

Thanks
Julie
awe Julie Dickason
Department for Chief of Staff to Alex Chisholm, Permanent Secretary

Business, Energy

& Industrial Strat
cay 7 Victoria Sireet Condon SW1H OET

www.gov.uk/beis I twitter.com/beisgovuk

The Permanent Secretary's box closes at 12pm each working day.
Advice on working with the Permanent Secretary's office can be found here.

From: Permanent Secretary

Sent: 29 November 2017 12:26

To: Keenan David (Finance); Clark MPST

Cc: Ridgwell Angie (DG FCS); Taylor Tom (Finance and Portfolio); Deeks Caleb (Policy Delivery &
Private Office); Sparks Leah (Finance & Portfolio); Maghrabi Syed (Finance); James MPST; SpAd Clark
MPST; Hall Glenn (MPST); Nolan Ruth (Finance & Portfolio); Cao Sally (Finance); Permanent Secretary
Subject: RE: Draft letter SoS to CX - Post Office Limited

David - many thanks for this. Alex has reviewed and amended slightly as per the attached.

Chris — I understand Alex and SoS will be discussing at 1:00pm.

Julie
we Julie Dickason
Department for Chief of

Business, Energy
& Industrial Strategy

1 Victoria Street London SW1H OET

www.gov.uk/beis I twitter.com/beisgovuk

The Permanent Secretary's box closes at 12pm each working day.
Advice on working with the Permanent Secretary's office can be found here.

From: Keenan David (Finance) [mailto:
Sent: 29 November 2017 09:31

To: Clark MPST

Cc: Permanent Secretary; Ridgwell Angie (DG FCS); Taylor Tom (Finance and Portfolio); Deeks Caleb
(Policy Delivery & Private Office); Sparks Leah (Finance & Portfolio); Maghrabi Syed (Finance); James
MPST; SpAd Clark MPST; Hall Glenn (MPST); Nolan Ruth (Finance & Portfolio); Cao Sally (Finance)
Subject: Draft letter SoS to CX - Post Office Limited

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Hi Chris
As discussed last night please find attached draft letter for the SoS to approve to send to CX. Glenn
has commented on this draft.

You will wish to be aware that official level feedback from HMT has indicated that they are
considering fully funding Budget announcements on both EFG and SSI. You will recall that they had
been indicating to us that they would be requesting that we fund these announcements from within
our current budgets, simply adding to BEIS pressures. HMT officials have told us that in line with the
Chief Secretary’s ‘operating principle’ they will be continuing to ask us to fund POL.

I do not think the above information changes things materially in relation to this draft letter and POL.
Firstly, the SoS sees POL as a shared inherited pressure. And even with EFG and SSI funding there are
still residual BEIS pressures including POL of £230m and £109m in 18/19 and 19/20 respectively.
These would require significant savings and tough choices.

More than happy to discuss.
Kind regards
David

From: Permanent Secretary [mailtd
Sent: 28 November 2017 14:33 *
To: Taylor Tom (Finance and Portfolio); Deeks Caleb (Policy Delivery & Private Office)
Cc: Permanent Secretary; Ridgwell Angie (DG FCS); Keenan David (Finance)
Subject: Urgent advice please: BEIS budget

Importance: High

Tom, Caleb

Given we are still yet to receive a Budget settlement letter, Alex has asked for your advice on whether
he (or SoS) should write to HMT along the lines of the following:

e As you know from previous correspondence back in [July?] we haven't got the money for
POL

e POL are expecting a decision to Budget timeframe

e The case presented by UKGI has support from both of our officials

e We've examined BEIS’ budgets and given other pressures it remains the case that we are
unable to fund POL. All the more the case given the two new items announced at last week's
Budget which are unfunded and were not discussed in advance with my officials.

e Welcome your thoughts on how you propose to proceed

I understand that HMT advice is due to go to CST imminently. Do you think a letter from Alex/SoS
would help or hinder progress?

Alex is meeting SoS later this afternoon, so grateful for a response ASAP pls. To note, I may need to
commission a draft along these lines quickly afterwards.
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Thank you

Julie
we Julie Dickason
D Chief of Staff to Alex Chisholm, Permanent Secretary
Busnes, Energy Office Mobil

& Industrial Strat
ad 1 Victoria Street London SW1H OET

www.gov.uk/beis I twitter.com/beisgovuk

The Permanent Secretary's box closes at 12pm each working day.
Advice on working with the Permanent Secretary's office can be found here.

From: Deeks Caleb (Policy Delivery & Private Office) [mailto:
Sent: 24 November 2017 19:25

To: Chisholm Alex (Private Office); Permanent Secretary

Cc: Taylor Tom (Finance and Portfolio); Keenan David (Finance)
Subject: IS and BEIS budget

Alex
Just a quick update on a couple of points.

SoS is planning to call Cx tonight on the issue of the scale up programme. So we’ ll see what
happens with that and I’ll let you know the outcome.

No 10 have been asking about whether POL funding could be brought forward to the current
financial year. They think that might help with a solution.

Tom and David have been looking at this. The spending scores when it it is spent by POL not
when it is given to them so this is unlikely to be a solution that helps HMT and there are other
issues - payment in advance of need and the need for state aid clearance. If we could bring
other spending forward that would be an alternative but the scope for that appears limited to
the low tens of millions.

I thought worth you being aware in case JJH is in touch over the weekend.

Caleb

Sent from my iPhone