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Witness Name: Gareth Thomas
Statement No.: WITN11490100
Dated: 24 September 2024
POST OFFICE HORIZON IT INQUIRY
FIRST WITNESS STATEMENT OF GARETH THOMAS MP
I, Gareth Thomas, will say as follows.
INTRODUCTION
1. I am the Labour and Co-operative Member of Parliament for Harrow West and
currently serve as Parliamentary Under-Secretary of State for Services, Small
Business and Exports in the Department for Business and Trade.
2. I make this witness statement to assist the Post Office Horizon IT Inquiry (the
“Inquiry”) with the matters set out in its Rule 9 request dated 23 July 2024 (the
“Request”). I have prepared it with the support of the Government Legal
Department and counsel. I have depended on others putting documents before
me to help me prepare this statement.
PROFESSIONAL BACKGROUND
Career Background
3. I have a BSc degree in Economics and a Masters degree in Imperial and
Commonwealth Studies. I began my career as a teacher, following completion of
a PGCE.
4. From 1990 to 1997, I was the member of Harrow Council for Wealdstone.
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5. I was elected as the Member of Parliament for Harrow West on 1 May 1997, and
have served as the constituency MP ever since.
6. From 10 July 2001 to 8 June 2019, I was Chair of the Co-operative Party.
7. I served as Parliamentary Under-Secretary of State for International
Development, in the Department for International Development (“DFID”), with
responsibility for Asia, Europe, Latin America, the Caribbean and Overseas
Dependent Territories from 2003 to June 2007. I was also DFID’s Green Minister
with responsibility for the department's environmental performance in relation to
the Sustainable Development in Government Framework and targets.
8. From 29 June 2007 to October 2008, I held the position of joint Parliament Under-
Secretary of State in DFID and Department for Business, Enterprise and
Regulatory Reform (“DBERR’).
9. From October 2008 to 13 May 2010, I was Minister of State in DFID.
10. I held a number of shadow ministerial jobs in opposition: International
Development; Higher Education and Science; Civil Society; Europe; Africa and
The Middle East; Local Government; and Trade.
11. I was not responsible for postal affairs during any of my shadow ministerial
appointments, though I recall being appalled at the unfolding scandal, and
supported the cross-party work to support sub-postmasters including by passing
the Post Office (Horizon System) Offences Act 2024.
MY WORK AS MINISTER
Current role and responsibilities
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12.
13.
14.
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I was appointed Parliamentary Under-Secretary of State (Minister for Services,
Small Business and Exports) in the Department for Business and Trade on 9 July
2024.
My responsibilities in that role include:
I am responsible for the following public bodies:
local growth
small businesses
Post Office
scale-ups
retail and hospitality
Professional and Business Services
access to finance
Ukraine reconstruction
export strategy
export support service
outward direct investment
trade missions, shows and campaigns
Osaka Expo
UK Export Finance (UKEF)
trade envoys
Post Office
British Business Bank
Small Business Commissioner
The importance of resolving Post Office issues
15.
One of the Labour Government's key manifesto commitments was to ensure that
justice and compensation are delivered as swiftly as possible for every sub-
postmaster caught up in the Horizon scandal. Though my ministerial portfolio is
wide, work to support the victims of the Horizon scandal, accelerate fair
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16.
17.
18.
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compensation, and improve the position of sub-postmasters over the long term,
is at the top of my agenda.
In the 2 months since my appointment, I have received regular written and oral
briefings, plus regular submissions from officials. I exhibit DBT Post Office
Briefing 16 July 2024 — Deep Dive 1: Post Office Redress (BEIS0000939), Note on
Post Office Changes dated 30 August 2024 (BEIS0000942), Weekly Update:
Post Office Convictions dated 9 August 2024 (BEIS0000941), and Ministerial
Submission — Publication of Horizon Redress Scheme Reports dated 25 July 2024
(BEIS0000940) to provide a general sense.
We regularly discuss issues relating to Horizon redress and the future of the Post Office
at departmental ministerial meetings, and I have held a number of useful and
informative meetings with postmasters, Parliamentary colleagues and other important
stakeholders including:
e Jo Hamilton: 24 July Readout of meeting between Minister Thomas and Jo
Hamilton dated 24 July 2024 (BEISO000948)
e Lord Arbuthnot: 25 July Readout of meeting between Minister Thomas and
Lord Arbuthnot dated 25 July 2024 (BEISO000945)
e Nigel Railton (Post Office interim chair): 20 August
e Tony Downey and Neil Hudgell: 21 August Readout of meeting between
Minister Thomas, Tony Downey and Neil Hudgell dated 21 August 2024
(BEIS0000947)
e Kevin Hollinrake: 2 September
e Calum Greenhow (NFSP): 3 September Readout of meeting between
Minister Thomas and Calum Greenhow dated 3 September 2024
(BEIS0000949)
e Dave Ward (CWU): 4 September Readout of meeting between Minister
Thomas and Dave Ward dated 4 September 2024 (BEIS0000946)
As the Inquiry would expect, since my appointment our main focus has been on issues
of redress for postmasters and ensuring that the Post Office has the right model for the
future, in which the central role played by postmasters is recognised and
respected.
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Redress
19. Iam concerned that fair compensation has not been paid to everyone deserving
of it as quickly as it should have been.
20. Since coming into government, we have already made a number of positive steps
to accelerate and improve the process of providing redress to postmasters, and
we are exploring additional options for the delivery of fair and timely
compensation for those affected.
21. On 25 July 2024, I gave my approval to the introduction of fixed sum awards
of £75,000 under the Horizon Shortfall Scheme, a decision which the Secretary of
State formally approved on 30 July 2024 Email from Secretary of State’s Private
Secretary dated 30 July 2024 RE: Ministerial Submission - Horizon Shortfall Scheme -
Fixed Sum Awards — OFFICIAL SENSITIVE (BEIS0000888). It is anticipated that this
will provide accelerated redress for many sub-postmasters, minimise stress and
difficulty, and enable more timely resolution of the claims of those sub- postmasters
who do not wish to accept the fixed sum award offered to them.
22. On 30 July 2024, the Secretary of State announced the launch of the Horizon
Convictions Redress Scheme Secretary of State oral statement to House of
Commons on 30 July 2024 (RLIT0000365). The Horizon System (Offences)
Act 2024 overturned the convictions of postmasters in England, Wales and
Northern Ireland. Similar legislation was passed in the Scottish Parliament.
Because the postmasters whose convictions were overturned in this way were
not eligible for compensation under the Overturned Convictions (OC”)
compensation scheme, it was clearly necessary to create a new scheme to
provide full and fair compensation to them. The scheme created for that
purpose is the Horizon Compensation Redress Scheme (“HCRS”). I refer the
Inquiry to the First statement of Carl Creswell (WITN11730100) for a
detailed explanation of the HCRS scheme and its mechanics and criteria.
The HCRS scheme is to be delivered by Department for Business and Trade
(“DBT”) in order to increase confidence, in
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line with the recommendations of the recent National Audit Office report titled
Lessons learned: Government Compensation Schemes, 5 July 2024
(RLIT0000366) and includes the option of a fixed sum award. The government
will pay the reasonable legal costs of applications under the scheme. Some of the
fine detail concerning the administration of this newly launched scheme, including
timeframes and governance and oversight arrangements, has not yet been
finalised and we will make further announcements as soon as possible.
23. On 25 July 2024, I agreed to the creation of an independent, DBT-administered
Horizon Shortfall Scheme (“HSS”) appeals mechanism Email from Minister
Thomas’ Private Secretary dated 25 July 2024 RE: Ministerial Submission -
Horizon Shortfall Scheme - HSS Appeals Mechanism - OFFICIAL SENSITIVE
(BEIS0000943), Submission to Minister Thomas for decision: Horizon Shortfall
Scheme Appeal Mechanism dated 24 July 2024 (BEIS0000944). This was
recommended by the Horizon Compensation Advisory Board, and is intended to
ensure that all HSS claimants, some of whom may have under-settled their
claims, will receive a fair level of redress. The Secretary of State approved this
course on 12 August 2024 Submission to Minister Thomas for decision: Horizon
Shortfall Scheme Appeal Mechanism dated 24 July 2024 (BEIS0000889) and
on 9 September 2024 he made a statement to Parliament in which he
announced the creation of this new appeals mechanism Secretary of State oral
statement to House of Commons 9 September 2024 (RLIT0000348).
Changing the Post Office
24. Itis clear that we need to find the right model for the Post Office. Before we come
to any conclusions on what that might look like, we want to draw on a range of
views and ideas.
25. DBT has given Nigel Railton, the Post Office’s interim chair, a mandate to
conduct a Strategic Review into the organisational culture, structure, resourcing
and operational processes within the Post Office, to be carried out in consultation
with postmasters. And, at the very start of his time as the new Secretary of State,
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Jonathan Reynolds discussed possible options for the future shape of the Post
Office with Mr Railton Readout of meeting between Secretary of State and Nigel
Railton dated 9 July 2024 (BEIS0000887), which he then followed up in writing
Letter from Secretary of State to Nigel Railton dated 4 September 2024
(BEIS0000891). I have also met Mr Railton to have initial conversations on
these issues.
26. We have also commissioned independent experts to advise us on the best model
for the Post Office in future.
27. The Inquiry will also play a role in this process; we will pay careful regard to its
findings and recommendations touching on issues of Post Office culture, the Post
Office’s abusive relationship with postmasters, and the right corporate and
governance model for the Post Office.
28. We are determined to identify ways to strengthen the Post Office network, in
consultation with sub-postmasters, trade unions and customers. We will also
support the development of new products, services and business models, such
as banking hubs, to help modernise branches.
CONCLUSIONS
29. I welcome the decision to set up the Inquiry and am grateful for the considerable
work that has already been undertaken. I look forward to receiving its report and
recommendations, and am happy to provide the Inquiry with whatever further
assistance I can.
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Statement of Truth
I believe the content of this statement to be true.
24/09/2024
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Index to First Witness Statement of Gareth Thomas
No.
URN
Document Description
Control Number
BEIS0000939
DBT Post Office Briefing 16 July 2024 —
Deep Dive 1: Post Office Redress
BEIS0000939
BEIS0000942
Note on Post Office Changes dated 30
August 2024
BEIS0000942
BEIS0000941
Weekly Update: Post Office Convictions
dated 9 August 2024
BEIS0000941
BEIS0000940
Ministerial Submission — Publication of
Horizon Redress Scheme Reports dated
25 July 2024
BEISOO00940
BEIS0000948
Readout of meeting between Minister
Thomas and Jo Hamilton dated 24 July
2024
BEISOO00948
BEISO000945
Readout of meeting between Minister
Thomas and Lord Arbuthnot dated 25 July
2024
BEISOO00945,
BEIS0000947
Readout of meeting between Minister
Thomas, Tony Downey and Neil Hudgell
dated 21 August 2024
BEISO000947
BEISo0000949
Readout of meeting between Minister
Thomas and Calum Greenhow dated 3
September 2024
BEISOO00949
BEISO000946
Readout of meeting between Minister
Thomas and Dave Ward dated 4
September 2024
BEISO000946
10.
BEIS0000888
Email from Secretary of State’s Private
Secretary dated 30 July 2024 RE:
Ministerial Submission - Horizon Shortfall
Scheme - Fixed Sum Awards - OFFICIAL
SENSITIVE
BEISOO00888
11.
RLITOO00365
Secretary of State oral statement to House
of Commons on 30 July 2024
RLITO000365
12.
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First Statement of Carl Creswell
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13.
RLITOO00366
National Audit Office report titled Lessons
learned: Government compensation
schemes dated 23 July 2024
RLITOO00366
14.
BEISO000943
Email from Minister Thomas’ Private
Secretary dated 25 July 2024 RE:
Ministerial Submission - Horizon Shortfall
Scheme - HSS Appeals Mechanism -
OFFICIAL SENSITIVE
BEISO000943
15.
BEISO000944
Submission to Minister Thomas for
decision: Horizon Shortfall Scheme Appeal
Mechanism dated 24 July 2024
BEISO000944,
16.
BEISOO00889
Email from Secretary of State’s Private
Secretary dated 12 August 2024 RE:
BEISOO00889
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Ministerial Submission - Horizon Shortfall
Scheme - HSS Appeals Mechanism -
OFFICIAL SENSITIVE
17.
RLITOO00348
Secretary of State oral statement to House
of Commons 9 September 2024
RLITO000348
18.
BEIS0000887
Readout of meeting between Secretary of
State and Nigel Railton dated 9 July 2024
BEISO000887
19.
BEIS0000891
Letter from Secretary of State to Nigel
Railton dated 4 September 2024
BEIS0000891
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