POL00024073
POL00024073
Department for
i Alex Chish
Business, Energy Pommanent Under-Secretary of State
& Industrial Strategy 1 Victoria Street
London
Sw:
Paula Vennells
[By email] Our ref: AC/SL1046
3 January 2018
Dear Paula
I am pleased to hear of the good work and progress being made towards delivering your
transformation programme, enabled by the funding provided by BEIS. The immediate and
measurable benefits of this programme should make viable the achievement of our shared
ambition of putting Post Office in a sustainable financial and operational position, with
HMG’s aspiration for POL to be free of taxpayer support beyond 2021.
As you will be aware, the Minister wrote to Tim Parker on 20 December 2017 to set out the
basis for providing transformation funding to Post Office and her expectations on how this
was to be used. The Minister emphasised the need for funding to be used prudently and
efficiently in accordance with the objectives of the three-year strategic plan whilst
recognising the need for some flexibility for a commercial business engaged in investment
projects.
In your recent funding request, you indicated that you intended to use BEIS funds for non-
transformation related spend specifically in relation to the ongoing Horizon Litigation. I
understand that this is now no longer the case and UKGI have communicated to your team
the requirement for BEIS funding only to be used against those projects which are related to
transformation or approved investment activities.
As Principal Accounting Officer, I am personally responsible for ensuring the department
has a high standard of governance and exercises effective controls over the management of
resources, including those through its partner organisations. So that I may have ongoing
assurance that BEIS funds entrusted to Post Office are being used as the Minister intended,
please can you confirm this on a quarterly basis in arrears. UKGI will provide you with
further details on the exact wording and format for how this assurance is to be provided.
I wish you and Post Office continued success in delivering the transformation programme.
Alex Chisholm
POL-0020552