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From:
Sent:
To:
Ce:
Subject:
Hi Carl,
Secretary Of State (Private Office)[/O=EXCHANGELABS/OU=EXCHANGE
ADMINISTRATIVE GROUP
(FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=7B811168695846498CA8997D65
FO9BCE-SH_BEIS_SEC]
Wed 20/11/2019 5:2:
Scott, Joshi
Permanent
; Grant, Calum
olhurst (Private
}; SpAds Office (Private
Cooper, Tom - UKG
Business Services.
White, Beth (Professional
Aldred,
Watson, Richard -
argava, Pranita
Robson, Hugo (Business
Vandini, Cecilia (Advanced
Manufacturing an ‘]; Richards, Nigel
(Finance & Portfoli
Services, Retail & P
(Finance & Portfolio)fi
*; Hill, Kate
<iigarriff, Patrick
} Manson, Justin
Beckett, Richard (Finance &
Ltd. (POL) Litigation
Thanks for the quick call just now. As discussed, Secretary of State has reviewed the advice and
remains concerned about the optics of mediation occurring during the pre-election period. She is
minded to explore with POL whether they would be willing to ask the Court/Claimants to move
the date of the mediation to post election. If they are not minded to do so, and I think this would
be the expected response, she would like this as a formal response. Grateful if you could discuss
with Perm Sec the best approach to contacting POL and let me know what you think is best. I
think it would be useful for Alex C to discuss with her in his 1-1 tomorrow morning.
Hannah, we discussed as well. Grateful if you can flag to Alex.
Best,
Bex
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From: Secretary Of State (Private Office)
Sent: Wednesday, November 20, 2019
“ Tolhurst (Private
; Richards, Nigel
; Creswell, Carl (Professional Business Services, Retail & Post Directorate)
ill, Kate (Finance & Portfolio) <7 Jackson, Louise
E Kilgarriff, Patrick
Beckett,
Patel, Vanisha (Finance & Portfolio)
le, Alex - UKGI
; Taylor, Tom
; Morrison, Emer (Legal
; Adegun, Oluwatosin - UKG
; Southerton, Sarah (BEIS)
Yeomans, Rachel (Communications & Partnerships)
subjec RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL) Litigation
Thanks Josh,
lll let you know if any further questions.
Best,
Bex
Rebecca Lowe, Private Secretary to the Rt Hon Andrea Leadsom MP, Department for Business, Energy
and Industrial Strategy
Sent: 20 November 2019 14:53
ecretary Of State (Private Offi
Cc: Cooper, Tom - UKGI <.
Retail & Post Directorate)
Setereneereenernerenen Bhargava,
Pranita (BEIS) ¢
; Robson, Hugo (Business Investment)
Vandini, Cecilia (Advanced Manufacturing and Services)
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Culshaw, Robin - UKGI ¢
Retail & Post Directorate) i_
Jackson, Louise (Legal
iff, Patrick (Legal) <_
; Beckett, Richard (Finance & Portfolio)
Patel, Vanisha (Finance & Portfolio) #
Cole, Alex - UKGI;
Taylor, Tom (Finance & Portfolio)
Yeomans,
i Creswell, Carl (Professional Business Services,
Portfolio)
; Corera, Jane (Legal)
; Manson, Justin
Adegun, Oluwatosin - UKGI
; Southerton, Sarah (BEIS)
Rachel (Communications & Partnerships)
Subject: RE: [OFF:SEN - LEGAL] Advice - App:
Litigation
Post Office Ltd. (POL)
Hi Bex,
Further to SoS's request for specific advice in relation to moving the POL GLO mediation date please
see the below. This has been cleared by UKGI, BEIS POL Policy and respective UKGI/BEIS legal
teams.
« The Secretary of State has no legal power to intervene to move the mediation date, and
Cabinet Office have confirmed that it is essential business that can proceed during the pre-
election period. The only way in which we believe we could influence the date would be to say
that we are unwilling to approve the settlement range and request that POL therefore considers
postponing the mediation.
* But Ministers should be aware of the significant risks of doing so. The date has been agreed
between the parties to the litigation. The Court has ordered the parties (of which Government is
not one) to consider alternative ways to resolve the dispute and is aware this mediation is taking
place. If POL were to withdraw at this very late state they would have to make clear that it was
because the Department would not give them authority to offer any sum in settlement. As far as
we are aware it would be unprecedented for Government to seek to intervene in a mediation in
this way.
* There would be a significant risk of drawing BEIS Ministers into public criticism of POL's
approach to the litigation if we were to take this step. It would be wholly counter to the
Department's position that this litigation is an operational matter for POL and— because it would
probably become public quickly — would raise questions about why Government is not willing to
sanction a mediation. It is very likely to lead to adverse press coverage, damage our relationship
with POL and risk any further participation by the claimants in POL’s attempts to settle the
litigation at a future stage.
* POL's external legal advisors have advised that that there is a high likelihood of losing on most
of the claims which could expose POL, and therefore the taxpayer, to a higher overall payment
than would occur through a successful mediation process.
If you have any questions please do feel free to contact me.
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Cheers,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
UK Government Investments
1 Victori don
Te GRO
From: Scott, Joshua - UKGI
Sent: 20 November 2019 13:39
ermanent Secretary
Tolhurst
SpAds Office (Private Office)
“4; White, Beth (Professional Business Services,
Cc: Cooper, Tom - UKGI
Retail & Post Directorat
Watson, Richard - UKGI <
“} Cole, Alex - UKG
__..GRO _P; Southerton, Sarah (BEIS) <
Rachel (Communications & Partnerships)
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Hi Bex,
Yes this has been picked up and we are just discussing with officials.
Cheers,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
UK Government Investments
1 Victoria Street I London I SW1H OET
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From: Secretary Of State (Private Office)
Sent: 20 November 2019 13:37
: Permanent Secretar
Portfolio)
Yeomans,
Rachel (Communications r Partnerships)
Subject: RE: [OFF:SEN - LEGAL] Advice - Approvai For Settlement Offer in Post Office Ltd. (POL)
Litigation
Grateful if someone can confirm his has been picked up
Bex
Rebecca Lowe, Private Secretary to the Rt Hon Andrea Leadsom MP, Department for Business, Energy
and Industrial Strategy
From: Secretary Of State (Private Office)
Sent: 20 November 2019 13
>; Scott, Joshua - UKGI
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Culshaw, Robin - UKGI { reswell, Carl (Professional Business Services,
Hill, Kate (Finance & Portfolio)
Morrison, Emer (Legal)
Adegun, Oluwatosin - U
Rachel (Communication & Partnerships)
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Hi all,
SoS has reviewed the note you shared and asked for specific advice on how we can try to move the
date if were minded to do so. Please note this is not yet decisions
Grateful if someone can outline the process we could use in this instance. Is it possible to get this by
3pm?
Thanks,
Bex
Rebecca Lowe, Private Secretary to the Rt Hon Andrea Leadsom MP, Department for Business, Energy
and Industrial Strategy
From: Permanent Secretary ¢_
Sent: 20 November 2019,
Morrison, Emer (Legal) L
Adegun, Oluwatosin - UKG
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‘eomans,
Secretary
; Southerton, Sarah (BEIS)
f GRO
Partnerships) ¢
EGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Hi Josh,
Thanks for sending this up and for your patience while I’ve tried to get this in front of Perm Sec! He
managed to review overnight and came back with the following comments:
Many thanks to you and team for this. I have read the whole thing and! agree with the
proposed range for settlement and the conditions around that, adding only to para 11 of the
sub that I would expect given the high sums involved that Carl would consult me,
and noting at para 12 that the subsidy cannot be treated ‘entirely separately’ given the letter
from Al Cameron explicitly links POL ability to self-fund to their expectation that the subsidy
would continue. On the substantive analysis and reasoned recommendations I find the HSF
advice notably high quality and persuasive in all respects. However, as they say, the situation
will develop and we must keep our best options under active consideration.
Hope this is clear but do give me a shout if you'd like to chat through.
Best wishes,
Oliver
From: Scott, Joshua - UKGI ¢
Sent: 19 November 2019 16:44"
; Grant, Calum (BEIS)
Richards, Nigel (Finance & Portfolio); GRO.
reswell, Carl (Professional Business Services,
ill, Kate (Finance & Portfolio)
‘orera, Jane (Legal)
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iff, Patrick (Legal) < “
; Beckett, Richard (Finance &
i inance & Portfolio
; Manson, Justin
Adegun, Oluwatosin - UKGI _
Litigation
Hi Bex
It is worth noting that normal protocol for mediation is that it is meant to be confidential so anything
coming out of it would be constituted as a leak, and normal practice would be that HMG does not
comment on leaks. However, given previous experience throughout the trial with this many claimants it
is unlikely that the details of the mediation will stay confidential for long.
This isn't in the note but should be flagged to No10.
It's difficult to say at this stage re media coveage however our best estimate would be to base
expected media coverage on who covered the first judgment in March.
Here is a short summary below:
* The judgment was covered by the Daily Mail, FT and Daily Telegraph (all of whom attended
court during the trial). There was no coverage in the Sun, Times, Guardian, Independent or
Mirror;
* Channel 4, ITN and Sky also covered the judgment on TV. BBC did not cover the story.
* There was also coverage in various regional and trade titles, all picking up POLs statement
and depicting a fair assessment of the judgment.
* POL received some direct questions/comments from postmasters and POL colleagues that
they dealt with as a priority.
In addition to this you can expected Nick Wallis, a crowd-funded journalist following the trial on behalf
of the Justice for Subpostmaster Alliance (JFSA), to also post.
Hope this helps,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
From: Secretary Of State (Private Office) 4
Sent: 19 November 2019 16:24
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BEIS0001131
To: Scott, Joshua - UKGI <
Grant, Calum (BEIS)
Permanent
b SpAds Office (Private Office)
Ce: Cooper, Tom - UKGI
Retail & Post Directorate)
White, Beth (Professional Business Services,
Aldred, Tom - UKGI
ava,
; Vandini,
Nigel
Pranita I (BEIS) <__
Richards,
‘Rachel (Communications & Partnerships) {
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Hi Josh,
Thanks for this — would it be possible to include what media coverage we expect if the mediation ran
its course during purdah?
Would you be able to add this in by 5pm?
Best,
Bex
Rebecca Lowe, Private Secretary to the Rt Hon Andrea Leadsom MP, Department for Business, Energy
and Industrial Strategy
From: Scott, Joshua - UKGI
Sent: 19 November 2019 1.
Cooper, Tom - UKGI
Retail & Post Di
Richards, Nigel (Finance & Portfolio) +
BEIS0001131
BEIS0001131
Culshaw, Robin - UKGI<_
Retail & Post Directorat
reswell, Carl (Professional Business Services,
Hill, Kate (Finance & Portfolio)
Jackson, Louise (Legal): i
Kilgarriff, Patrick (Lega
(UKGiy!
; Morrison, Emer
Adegun,
>; Southerton, Sarah itis)
‘ations & Partnerships)!
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Yeomans,
Hi Bex,
Thanks for sending these and talking them through with me earlier.
Please see attached a revised document addressing the questions below.
Any further questions please feel free to drop me a line.
Cheers,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
UK Government Investments
1 Victoria Street I London, LSW1H OET
Sent: 19 November 2019 11:53” a
To: Secretary Of State (Private Office) i GRO >; Scott, Joshua - UKGI
Permanent
White, Beth (Professional Business Services,
Idred, Tom - UKGI
» (Finance & Portfolio) <
GRO + Corera Jane (Legal)
Kilgarriff, Patrick (Legal) <_
Jackson, Louise (Legal) ]
(
Manson, Justin -
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BEIS0001131
; Beckett, Richard (Finance & Portfolio)
tel, Vanisha (BEIS) +
; Cole, Alex - UKG
; Morrison, Emer
5 Adegun,
; Southerton, Sarah (BEIS) ¢
Partnerships) GRO
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Copying Sarah and Rachel from Press Office in to the chain.
From: Secretary Of State (Private Office) ¢
Sent: 19 November 2019 10:41
Culshaw, Robin - UKGI +
Retail & Post Di
Patrick (Legal) +
Beckett, Rich
(BEIS)
‘ole, Alex -
Taylor, Tom (Finance & Portfolio) 7
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Hi Josh,
Thanks for sending this up. I think we need to strengthen the section on why the decision needs to be
made during purdah before this is shared with No10. A few things I think helpful to address more
specifically would be:
* How within our power is it to move the mediation date to after purdah?
* What specific risks would moving the mediation date have on POL’s strategy — ie. Increased
cost of final settlement, poor media coverage etc?
* Would there be more of a media reaction if the mediation was moved than if the mediation
happened?
* How much media coverage is expected if the mediation were to go ahead and what form of
announcement would be necessary if the mediation was successful?
* If mediation was unsuccessful when would the 2 session be?
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Overall the note needs to show a clear benefit for mediation occurring in purdah, against delaying it
to afterwards. Would it be possible to have a revised note with the above addressed for 2pm today?
More than happy to discuss,
Bex
Rebecca Lowe, Private Secretary to the Rt Hon Andrea Leadsom MP, Department for Business, Energy
and Industrial Strategy
From: Scott, Joshua - UKGI <
Sent: 18 November 2019 15:34 -
To: Secretary Of State (Private Office) + ; Tolhurst (Private Office)
SpAds
Cc: Cooper, Tom - UKGI
Retail & Post Directorat
janufacturing and Services)
Richards, Nigel (Finance & Portfolio) <
5 Creswell, Carl (Professional Business Services,
Culshaw, Robin - UKGI
Retail & Post Directorat
; Cole, Alex -
i GRO Adegun, Oluwatosin - UKGI
Taylor, Tom (Finance & Portfolio)
Subject: RE: [OFF:SEN - LEGAL] Ad
Litigation
ent Offer in Post Office Ltd. (POL)
Hi Charlotte,
Further to the below please see attached the requested background note for No.10. I have
also attached the previous read-out from Shanice re the earlier call between officials and
Kelly.
Our understanding is that we are not being asked to seek approval from SoS or No 10. As
discussed earlier we have an information sharing protocol in place with POL so if No10
request anything more detailed please do let us know and we can discuss.
We are also awaiting sign-off from the Perm Sec and HMT Chief Secretary.
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Cheers,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
UK Government Investments
ondon I SW1H OET
www.ukgi.org.uk/
From: Scott, Joshua - UKGI
Sent: 18 November 2019 10:36
To: Secretary Of State (Private Office) + GRO
; Tolhurst (Private Office)
4
Office (Private Office)
Cc: Cooper, Tom - UKGI
Retail & Post Directorate)
Pranita (BEIS) I GRO
Cecilia (Advanced Mai
(Finance & Portfolio)
L RO
Directorate) ¢
(Finance & Portfolio
Corera, Jane (Legal)
Jb Vandini,
Richards, Nigel
__h Culshaw, Robin - UKGI
Carl (Professional Busin
Grant, Calum (BEIS) <_.
jackson, Louise (Legal) ¢_
; Kilgarriff, Patrick (Legal)
GRO
Beckett,
Richard (Finance & Portfolio) <
orrison, Emer (Legal)
Adegun, Oluwatosin - UKGI +
Taylor, Tom (Finance & Portfolio)
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
lex -
4
J
Hi Charlotte,
Thanks for the quick response and no problem.
l'll pick this up and issue a 1-pager to you this afternoon.
Cheers,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
UK Government Investments
1 Victoria Street I London I SW1H OET
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11W: www.ukgi.org.uk,
From: Secretary Of State (Private Office) ¢"~
Sent: 18 November 2019 10:26
Tolhurst (
Permanent Secretary <
Pranita (BEIS),
Cecilia (Advanced Manufacturing and Services) <
(Finance & Portfolio
Taylor, Tom (Finance & Portfolio) ¢ GRO fi
Subject: RE: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL)
Litigation
Hi Joshua,
Thank you for sending up — the Secretary of State has viewed over the weekend and has asked for a
one pager on this decision that we can share with the PM's office, if necessary. This only needs to be
top lines— i.e. what the decision is, key facts, why it needs to be made in purdah, implications of
delaying etc
As far as I am aware, this decision hasn’t yet been made by Minister Tolhurst — but if I could have this
one pager by 4pm today, that would be great.
Please could you confirm receipt that somebody has picked this up — and shout if this deadline is not
feasible.
Happy to chat through on the phone,
Thanks
Charlotte
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Me Charlotte Weston
dot Private Secretary (cover) to the Secretary of State
‘gy and Industrial Strategy
Department for Mobile! GRO
Business, Energy ;
& Industrial Strategy www.gov.uk/beis I twitter.com/beisgovuk
From: Scott, Joshua - UKGI +
Sent: 15 November 2019 12:56 .
To: Secretary Of State (Private Office) <
‘ SpAds
Office (Private Office) i
Cc: Cooper, Tom - UKGI
Retail & Post Directorate) ¢
; Bhargava,
t)
GRO 5 Richards, Nigel (Finance & Portfolio) § }
Creswell, Carl (Professional Business Services,
rant, Calum (BEIS)
‘e (Finance & Portfolio f
Corera, Jane (Legal)
ckson, Louise
Kilgarriff,
Morrison, Emer (Legal) ¢
; Adegun, Oluwatosin - UKGI
lio) <
Subject: [OFF:SEN - LEGAL] Advice - Approval For Settlement Offer in Post Office Ltd. (POL) Litigation
OFFICIAL SENSITIVE - LEGAL
Shanice, Oliver, Jefferson and Bex,
Advice for approval.
Purpose
Following advice submitted 8 November (attached as Annex A) this advice requests Minister Tolhursts
approval for the settlement range proposed by POL (and their external legal advisors Herbert Smith
Freehills (HSF)) in preparation for their mediation meeting with Claimants in the Group Litigation Order
on 27/28 November.
This note seeks your approval to a proposal from the POL Board to authorise settlement at a figure up
to £65m. CST approval is being sought in parallel. The settlement working group of BEIS/UKGI/HMT
Officials met on 14 November and agreed to support the POL board's proposal for settlement at a
figure up to £65m.
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In line with the decision of the POL Board, any offer above £48m could be made only if it ensures a
settlement takes place and would require POL [CEO and Chair] approval, as well as the approval of
officials from BEIS and HMT.
Minister Tolhurst has a phone call with officials on 18 November to discuss the advice and justifications
for the settlement range proposed.
Timing
Urgent — a decision is required by 22 November.
We have discussed this advice with Perm Sec’'s Office in light of the pre-election period and can
confirm it is classed as ‘essential business’ and should be allowed to continue during this time.
Special Advisers
This has been sent to SpAds office in parallel.
Annexes
Annex A-— POL Approach to GLO Mediation Written Advice submitted 8 November.
Annex B - Advice on Settlement (Draft) provided by HSF and discussed at 14 November settlement
working group meeting.
Annex C - Advice on Convicted Claimants provided by HSF and discussed at 14 November settlement
working group meeting.
Annex D — POL CFO Confirmation Letter
Contacts
Director General — Justin Manson
Lead Official - Joshua Scot!
Director Responsible — Tom Cooper, GRO
Any questions please let me know.
Cheers,
Josh
Joshua Scott I Analyst
Post Office Shareholder Team
UK Government Investments
1 Victoria Street I London I SW1H OET.
LM:
www.ukgi.org.uk/
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