UKG100043126
UKGI00043126
From: Cooper, Tom - UKGI
Sent: Thu, 1 Oct 2020 19:59:37 +0000
To: Scott, Joshua - UKGI;Creswell, Carl (Professional Business Services, Retail &
Post Directorate);Brooks- White (Jobshare)
Ce: McInnes, Tim - UKGI;Watson, Richard - UKGI;Hill, Kate (Finance &
Portfolio);Permanent Secretary;Milne, Sarah (Finance & Portfolio);Parashar, Urvashi (Advanced
Manufacturing and Services);Hodkinson, Fiona (Advanced Manufacturing and Services);Corera, Jane
(Legal);Mckay, Jessica (BEIS);Cutting, Nicola (Communications & Partnerships);Patel, Vanisha
(Finance & Portfolio);Keoghan, Michael (Analysis Directorate)
Subject: Re: Submission: POL Compensation Announcement Sub
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From: Permanent Secretary :
Sent: Thursday, October 1, 2
To: Scott, Joshua - UKGI!~
Services, Retail & Post Directorate) {
Brook:
1 SpAds Office (Private Office) I GRO
Watson, Richard - UKGI
“} Milne, Sarah (Finance & Portfolio)
Parashar, Urvashi (Advanced Manufacturing and Services)
Hodkinson, Fiona (Advanced Manufacturing and Services)
GRO (Legal)
Cutting, Nicola (Communications &
Patel, Vanisha (Finance & Portfolio)
ichael (Analysis Directorate)
‘Humberstone, Kim (Finance & Portfolio)
“Jessica (BEIS):
Partnerships)
mpensation Announcement Sub
OFFICIAL-SENSITIVE: COMMERCIAL
Hi Joshua,
I think that we need to be clear on what the AO advice is for. Is it for the scheme, or just for the
announcement? If it’s for the scheme, then I think we clearly need HMT approval and budget
cover, which should also help the regularity risk. If it's solely for the announcement, then this will
also bring down the regularity and vfm risks.
If just the announcement, then we need an assessment of taking this step i.e. can we
legitimately make this announcement having due regard to Sarah’s MPM obligation?
Happy to chat if necessary.
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Private Secretary to Sarah Munby, Permanent Secretary
permanentsecretary
From: Scott, Joshua - UKGI
Sent: 01 October 2020 18:02
To: Permanent Secretary
Business Services, Retail
CreswellCarl (Professional
Cooper, Tom -
4; Brooks-White (Jobshare)
(
Scully, Minister (Privat
; SpAds Office (Private Offi ice).
Milne,
Sarah (Finance & Portfolio’
Manufacturing and Services)
)
Cutting,
ha
Keoghan, Michael (Analysis Directorate)
Humberstone, Kim (Finance & Portfolio)
“Subject RE: Submission: POL Compensation Announcement Sub
Hi Imogen,
With many thanks to colleagues for their contributions please see below answers to the Perm Sec's
questions. Very grateful if you could put these to Sarah for her consideration and (apologies in advance)
ideally tonight if possible.
POL are looking to issue the press statement tomorrow morning, after the postmasters whose cases are
being considered have been informed of the response. Realistically, I think the latest we could receive
feedback by would be 10:30 as POL would like to release the statement with the compensation language
ahead of their response being picked up in the media.
I am around for a call whenever needed if you have any questions.
It has a high vfm risk, and we’re not sure why. What we need is an assessment of this
announcement, which leaves room to design a vim scheme. We assigned the vfm risk
high at present due to the uncertainty around what scheme would provide best vfm. The
announcement tomorrow does not bind POL to any one option and thus leaves room for
us to work with POL to design a vim scheme as more information comes from the
courts.
In reality a voluntary compensation scheme is likely to offer vim even if the financial cost
is the same as the litigation option (not just less than) because of the non-monetized or
indirect benefits (reputational costs for POL/HMG, saved litigation costs to postmasters).
The outcome of the appeals will dictate quite heavily what route would offer best vfm
however the rationale for providing support to POL remains the same no matter what
route is chosen; POL provides a range of services to communities and consumers and
significant compensation or litigation costs that undermine the future financial viability of
POL would put the company, and the social benefits it offers, at risk.
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« Why are we okay with this despite no HMT commitment? Our assessment is that there
would not be a budgetary impact for BEIS in POL making this announcement.
In terms of timescales, the courts will determine timings on hearings for whether or not
convictions are overturned. If a conviction is overturned, it does not necessarily mean
the claimant is due compensation; there would be a separate process where judges
determine if and what level of compensation the claimant is due. POL are looking to get
on the front foot, so that if a conviction is overturned, they can offer a compensation
scheme without putting postmasters through further legal proceedings. They are looking
to make an announcement on a compensation scheme around Spring 2021. UKGI
believe the obligating event would be sometime next year either when i) POL announce
that a compensation scheme will be available and open in X or ii) if a scheme wasn't
announced and you followed civil litigation claims through and POL were ordered by the
court to pay compensation.
The point when BEIS would recognise a provision is when BEIS commits itself to fund
POL, for example a letter of comfort or a public statement. Up to that point, POL has the
obligation already regardless of the announcement because it has recognised a remote
contingent liability in its accounts for the litigation. The compensation scheme would just
be a way to limit the recognition of any future costs if the convictions are overturned and
the compensation is taken up. AME budget cover would be required for a provision, this
is likely to be in 2020-21, due to the outcome of whether the convictions are overturned
being a post balance sheet adjusting event. We are in discussions with HMT on this.
We need a clearer answer on why we are confident this won't lead to a regularity
challenge. POL is already recognising a contingent liability for potential litigation. BEIS
have not made any obligations to POL that they would fund the potential litigation or
compensation scheme costs.
The announcement has not triggered a need for budget cover for BEIS; this is envisaged
to be triggered next FY but AME budget cover may be required this FY hence officials
are working with HMT to secure budget cover in time for supps.
Furthermore, POL has the legal powers, as would any other private individual or
company, to settle liabilities regarding compensation (in a similar vein to the GLO
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settlement). Any scheme would be administered by POL, not BEIS or HMT, so we are
confident that the statement is regular.
e In general, we need an AO assessment that is more specific to making the
announcement. It is difficult to do an AO assessment when there isn’t a specific
proposal. As noted above, the statement leaves all options open so we elected to do an
assessment against the principle of offering compensation.
One final point, this is the first opportunity since the litigation began for BEIS and POL to be on
the front foot and help control the narrative, particularly given the feedback seen following the
announcement of the Post Office IT Inquiry on Tuesday where the lack of any statement
regarding compensating postmasters was the key criticism. For example, please see the quote
from Ed Miliband: “"It's right that the government has finally announced a judge-led inquiry into
the Horizon Post Office scandal, which Labour called for months ago. I pay tribute to the
campaign of the sub-postmasters to make it happen. We must uncover the truth about how this
appalling miscarriage of justice could ever have happened. The victims need answers, but they
deserve so much more than that. The inquiry's terms of reference should include how
those affected will be compensated for the decades-long ordeal they have endured.”
It is likely that without this statement BEIS and POL would come under further pressure from
people seeking clarity regarding POL’s plans for compensation. If POL is able to make this
statement BEIS can cross refer to it in it’s external lines, whereas if there is no statement it may
result in BEIS having to respond directly to calls for compensation.
Cheers,
Josh
Joshua Scott I Manager
UK Government Investments
Follow on in}
From: Scott, Joshua - UKGI
Sent: 01 October 2020 16:
To: ‘Permanent Secretary’
Busi i i
Creswell, Carl (Professional
; Parashar, Urvashi (Advanced
; Hodkinson, Fiona (Advanced
Corera, Jane (Legal)
+ Cutting,
Milne,
Manufacturing and Services);
Manufacturing and Services):
5
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“iPatel, Vanisha
; Keoghan, Michael (Analysis Directorate)
Humberstone, Kim (Finance & Portfolio)
Nicola (Communicatt
(Fi
GRO
‘Subject: RE: Submission: POL Compensation Announcement Sub
Hi Imogen,
Thanks — just to confirm this has been picked up. We are clearing a response and will get back to you on
this chain as soon as possible.
Cheers,
Josh
Joshua Scott I Manager
UK Government Investments
Vic Street, London, SW1H 0ET
www.ukgi.org.uk
Follow on
From: Permanent Secretary t
Sent: 01 October 2020 1
To: Scott, Joshua - UKG
reswell Carl (Professional Business
Te
Secretary Of State (Private es
e Office)
Manufacturing and Services):
Manufacturing and Services);
IHumberstone, Kim (Finance & & Portfolio)
J; Permanent Secretary :_
‘Subject: RE: Submission: POL Compensation Announcement Sub
OFFICIAL-SENSITIVE: COMMERCIAL
Hi all,
Just had a conversation with Joshua. Sarah has some concerns with the AO assessment, and
isn’t happy to clear yet.
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e It has a high vfm risk, and we’re not sure why. What we need is an assessment of this
announcement, which leaves room to design a vim scheme.
e Why are we okay with this despite no HMT commitment?
We need a clearer answer on why we are confident this won't lead to a regularity
challenge
e In general, we need an AO assessment that is more specific to making the
announcement.
If you could let me know the answers to these, then I can put it back to her.
Best wishes
permanentsecretary,
From: Scott, Joshua - UKGI
Sent: 01 October 2020 10:35
Permanent
Secretary
Scully, Minister (Private Office)
Private Office)
rtfolio) I ~~
Parashar, Urvashi (Advanced
t Hodkinson, Fiona (Advanced
+ Corera, Jane (Legal)
Milne,
Subject: RI Submissio POL Compensation Announcement Sub
Hi Imogen,
Just left you a message.
Apologies I think there has been some confusion. Looking at the chain below this looks like the chain for
the outdated advice that was submitted in error last week.
Updated advice was submitted Monday and cleared by SpAds (see attached the new chain and advice).
This requested approval for the press statement and noted that it we will seek budget cover from HMT
at Supplementary Estimates.
Very grateful if you could confirm this updated advice was the version cleared by the Perm Sec and,
therefore, that POL’s announcement can be made.
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Happy to have a call to discuss.
Cheers,
Josh
Joshua Scott I Manager
UK Government Investments
Victoria St London, SW1H 0ET
‘Wiline: Sarah (Finance & a ‘ashar, Urvashi (Advanced
Manufacturing and Service Hodkinson, Fiona (Advanced
_t Cutting,
nisha
Subject: RE: Submission: POL Compensation Announcemen’
OFFICIAL-SENSITIVE: COMMERCIAL
Hi Imogen,
Thanks for dealing with this.
Can I just check that you meant Sarah is happy for POL to make the announcement, but
recognises that we will need budget cover in place before POL can pay out any money, please?
The alternative of seeking budget cover before the announcement can be made wouldn't be
possible in time because it will require more discussions between HMT and BEIS Finance, so
that would mean having to block Post Office from making the announcement.
Carl
UKGI00043126
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ae Carl Creswell
5 Director, Professional & Business Services, Retail and Post
Department for
Business, Energy
& Industrial Strategy
“Orchard 2, 1 Victoria Street, London SW1H OET
www.gov.uk/beis I https://twitter.com/beisgovuk
From: Cooper, Tom - UKGI I
Sent: 30 September 2020 18:13
To: Permanent Secreta
Milne,
; Humberstone, Kim (Finance & Portfolio)
Creswell, Carl (Professional Business Services, Retail &
POL Board is meeting at 3.30 tomorrow afternoon to approve the announcement.
So the budget cover condition needs to be cleared or resolved by then please.
Tom
Tom Cooper
Director
UK Government Investments
1 Victoria Street I London I SW1H OET
GRO
From: Permanent Secretary f _
Sent: 30 September 2020 18:
To: Brooks-White (Jobshare) Scully, Minister (Private Office)
UKG100043126
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‘Secretary Of State (Private Office)
Scully, Minister (Private Office)
ice)
Ine, Sarah (Finance & Portfolio)
vanced Manufacturing and Services)
; Hodkinson, Fiona (Adv: i Services)
i:-Corera.Jane (Legal) <"
GRO +; Cutting, Nicola (Communications &
RQ; Patel, Vanisha (Finance & Portfolio)
eoghan, Michael (Analysis Directorate)
+ Humberstone, Kim (Finance & Portfolio)
Creswell, Carl (Professional Business Services, Retail &
F ___....¥; Scott, Joshua - UKGI
; Permanent Secretary
ubmission: POL Compensation Announcement Sub
OFFICIAL-SENSITIVE: COMMERCIAL
Hi Beth and Eleanor,
Sarah is happy to clear, subject to budget cover.
Best wishes
permanentsecretary;
From: Brooks-White (Jobshare)
Sent: 24 September 2020 14:11
Scully, Minister (Private Office)
r (
Scully, Minister (
pAds Office (Private Office)
5 Hill, Kate
Parashar, Urvashi (Advanced Manufacturing and Services)
+; Hodkinson, Fiona (Advanced Manufacturing and Services)
Cutting, Nicola (Communications &
Patel, Vanisha (Finance & Portfolio)
ichael (Analysis Directorate)
Humberstone, Kim (Finance & Portfolio)
Creswell, Carl (Professional Business Services, Retail &
} Scott, Joshua - UKGI
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Subject: Submission: POL Compensation Announcement Sub
OFFICIAL-SENSITIVE: COMMERCIAL
Hi Imogen,
Cc Ash, Megan, Leo, James
On 7 September Post Office Ltd. (POL) updated Ministers and the Perm Sec on its approach to the cases
of convicted postmasters that have been referred for appeal. At this meeting officials committed to
providing advice to the Perm Sec as the issue has AO implications regarding POLs intention to announce
that compensation would be available to those postmasters whose convictions are overturned.
Details of the sub below.
Purpose
This note provides an AO assessment of POL's compensation announcement. Officials request the Perm
Sec's approval, subject to HMT providing consent and confirmation of funding which officials are seeking
in parallel, to enable POL to announce their intentions on/around 2 October together with the response to
the Court of Appeal / Crown Court.
Timing
Officials request approval by 30 September.
Special Advisers
This note has been sent to SpAds in parallel.
Annexes
Annex A — Accounting Officer Assessment of POL Compensation Announcement
Annex B — Draft POL press statement
Contacts
Director General: Carl Creswell
Lead Officials: Eleanor Brooks/Beth White
Lead Official Telephon: GRO
Many thanks
Beth
Eleanor Brooks and Beth White
aw Deputy Director (Jobshare), Post Office Policy and Sectors Briefing Hub
Department for
Business, Energy
& Industrial Strategy www.gov.uk/beis I https://twitter.com/beisgovuk
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Working pattern: Eleanor: Monday: Wednesday; Beth: Wednesday-Fric
Sent: 24 September 2020.13:34.
To: Scott, Joshua - UKGI;
: +; Cutting, Nicola (Communications & Partnerships)
i SG RO i; Patel, Vanisha (Finance & Portfolio)
= Keoghan, Michael (Analysis Directorate)
OFFICIAL-SENSITIVE: COMMERCIAL
Hi Josh,
Many thanks for preparing this and to all who have contributed on this tricky topic.
I've marked up a couple of small points. Are we attaching the press statement as an annex?
On the handling of Ministers, I have suggested not addressing it to Perm Sec as ‘you’, since the
plan seems to be to go to them at the same time as Sarah? It seems right to send to all at once
given the need to move quickly, though someone will need to call offices to explain (lest we get
stuck needing sequential clearance from four offices...)
Copied also to Mike for info.
Beth - can I leave with you / the team to send up, unless anyone has concerns on my points
and once Finance have given final approval, please?
Carl
Died. Carl Creswell
Department for
Business, Energy
& Industrial Strategy
Orchard 2, 1 Victoria Street, London SW1H OET
www.gov.uk/beis I https://twitter.com/beisgovuk
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From: Scott, Joshua - UKGI _
Sent: 24 September 2020 13:20
To: Creswell. Carl.(Professional Business Services, Retail & Post Directorate)
i GRO
Ce Cooper, Tom - UKG
_ GRO 5 Hill, Kate (I
_S } Milne, Sarah (Finance & Portfoli
Parashar, Urvashi (Advanced Manufacturing and Services) :
Hodkinson, Fiona (Advanced Manufacturing and Services) +
; Mckay, Je:
Cutting, Nicola (Communications & Partnerships)
i Patel, Vanisha (Finance & Portfolio)
Subject: FOR CLEARANCE . POL Compensation Announcement Sub
Hi Carl,
With many thanks to all those cc’ed for their contributions please see attached the final version of the
POL Comp Announcement sub. There is a some technical language Vanisha is just double-checking in
the financial implications with finance colleagues but I think this is in a sufficient state for you to consider.
We have chased POL and they have assured us that the latest draft of the statement will be with us asap
this afternoon. In the interest of time I would be very grateful for your clearance on the attached in the
meantime.
We agreed the sub is best to come from your team. Appreciate your team are busy so I have also drafted
a template email for the submission if needed.
Will send over the press statement as soon as we get it. Then when you're happy with everything please
do send it up. I rang Imogen earlier and she is expecting it.
Cheers,
Josh
Joshua Scott I Manager
UK Government Investments
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This email and any files transmitted with it are intended solely for the use of the individual(s) to whom they are
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delete the email. This footnote also confirms that our email communications may be monitored to ensure the
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This email and any files transmitted with it are intended solely for the use of the individual(s) to whom they are
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delete the email. This footnote also confirms that our email communications may be monitored to ensure the
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