Horizon scandal: Post Office scandal victims to be exonerated and compensated as Rishi Sunak proposes new law

Published

4 months ago

January 10, 2024

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The prime minister has said a new law will be introduced so people wrongly convicted in the Horizon scandal are “swiftly exonerated and compensated”.

In the first Prime Minister’s Questions of the year, Rishi Sunak said he plans to make sure those convicted as part of the Post Office scandal get exonerated through an act of parliament.

As well as announcing the introduction of new primary legislation – which has yet to be published or given a timetable for voting – Mr Sunak said those who were part of the group litigation order against the Post Office would be eligible for an “upfront payment of £75,000”.

Politics latest: Sunak and Starmer face off in first PMQs of the year

The government has come under increased pressure to take action on the Horizon scandal following the airing of ITV drama Mr Bates Vs The Post Office last week.

More than 700 sub-postmasters and sub-postmistresses were prosecuted for accounting errors relying on data from the faulty Horizon software.

Once they are exonerated, the government has confirmed sub-postmasters and sub-postmistresses will be eligible for at least £600,000 compensation, depending on their circumstances.

The scheme applies to England and Wales.

Speaking in the House of Commons, Mr Sunak said: “Mr Speaker, this is one of the greatest miscarriages of justice in our nation’s history.

“People who worked hard to serve their communities had their lives and their reputations destroyed through absolutely no fault of their own.

“The victims must get justice and compensation. Sir Wyn Williams’ inquiry is undertaking crucial work to undo, to expose what went wrong, and we’ve paid almost £150m in compensation to over to 2,500 victims.

“But today I can announce that we will introduce new primary legislation to make sure that those convicted as a result of the Horizon scandal are swiftly exonerated and compensated.

“We will also introduce a new upfront payment of £75,000 for the vital [Group Litigation Order] group of postmasters.”

The prime minister’s spokesman said the intention was to have the legislation introduced within weeks and compensation paid out by the end of the year.

Kevin Hollinrake, the postal minister, provided an update to the Commons following PMQs on how they plan to deal with people who did commit a crime that get their conviction overturned.

He said that all those claiming compensation will sign a statement of truth to say they did not commit the crimes of which they were accused.

“Anyone subsequently found to have signed such a statement untruthfully will be putting themselves at risk of prosecution or fraud,” Mr Hollinrake said.

The minister admitted this was not “foolproof”, but it was a “proportionate” device “which respects the ordeal with which these people have already suffered”.

He also said the government was considering whether people who had their appeals refused already would have their convictions overturned.

Numerous ways to fast-track the overturning of convictions had been mooted prior to today’s announcement.

Some had called for a mass appeal before the Court of Appeal, while others wanted legislation to overturn the convictions or even a pardon from the King.

It is not clear exactly how the mechanics of the Commons overturning hundreds of prosecutions will work.

Sir Keir Starmer, the Labour leader, indicated earlier this week that his party would support an attempt through law to overturn the convictions.

Responding to Mr Sunak today, Sir Keir said: “Mr Speaker, I heard what the prime minister just said about the Post Office scandal – it is a huge injustice.

“People lost their lives, their liberty and their livelihood, and they’ve been waiting far too long for the truth, for justice, and for compensation.

“So I’m glad the prime minister is putting forward a proposal.

“We will look at the details, and I think it’s the job of all of us to make sure that it delivers the justice that is so needed.”

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Last year, the government announced that every wrongly convicted sub-postmaster and sub-postmistress would be offered £600,000 in compensation.

In 2019, the Post Office agreed to pay £58m to 555 sub-postmaster and sub-mistresses.

Business

Zahawi takes on Very Group role days after quitting as MP

Published

3 hours ago

May 13, 2024

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Zahawi takes on Very Group role days after quitting as MP

Nadhim Zahawi, the former chancellor, is to be named as chairman of one of Britain’s biggest online retailers, days after confirming that he would step down from parliament at the next general election.

Sky News has learnt that Mr Zahawi is to be appointed non-executive chair of Very Group, the largest remaining part of the Barclay family’s business empire.

Sources said the appointment, which will see him replacing interim chair Aidan Barclay, would be announced on Monday.

His arrival at Very Group will come during a period of turbulence for the Barclay family, who own The Daily Telegraph but are unable to exert influence over it under a government order while its future ownership remains uncertain, subject to a forthcoming auction.

Mr Zahawi’s appointment at Very Group, first revealed by Sky News in March, is likely to prompt a search for fresh equity investment in the near term, as well as a broader review of its capital structure.

The company, which owns the Very and Littlewoods brands, is weighed down by debt, but has nearly 4.5 million customers and significant expansion targets.

Based in Liverpool, it sells electrical goods, homewares and fashion, backed by a large consumer finance arm.

It is said to have performed resiliently despite uncertainty over its ownership.

The company recently said it had secured £125m of new debt funding from Carlyle Global Credit and IMI, which the company has said is designed to support future growth.

Mr Zahawi, the MP for Stratford-on-Avon since 2010, had a brief stint as chancellor of the exchequer, while he also held ministerial posts at the Department of Health and Social Care – where he oversaw the vaccine rollout during the COVID pandemic – the Department for Business and as chancellor of the Duchy of Lancaster.

He was made Conservative Party chairman by Rishi Sunak but was dismissed for failing to disclose he was being investigated by HMRC and the National Crime Agency over a multi-million pound tax dispute related to the sale of shares in his polling firm YouGov while he was chancellor.

He said he had made a “careless and not deliberate” error after initially saying he had no knowledge of the investigation and had “paid all taxes”.

Mr Zahawi’s announcement last week that he would not stand again at the next election meant he joined the likes of Theresa May, the ex-prime minister, and former Conservative Party chairman Sir Brandon Lewis in deciding to leave parliament.

Prior to his political career, he was the founder of YouGov, while he is now a patron of the Adam Smith Institute, the economic thinktank.

Mr Zahawi has been playing a role as an intermediary between the Barclay family and the Abu Dhabi-based investor IMI Investments since its interest in participating in a bid for The Daily Telegraph emerged last summer.

He had been tipped to chair the newspaper group if RedBird IMI, a vehicle fronted by former CNN president Jeff Zucker, had been successful in buying it.

However, a fierce backlash from Conservative parliamentarians prompted Downing Street to intervene and amend legislation to prohibit ownership of British newspaper titles by investors connected to a foreign state.

RedBird IMI is now finalising preparations to conduct a further auction of the Telegraph newspapers and The Spectator magazine.

The Barclays, who used to own London’s Ritz hotel, have already lost control of several of their corporate assets.

In February, Yodel Group, their parcel delivery business, narrowly averted insolvency when it was sold to a consortium backed by executives at Shift, a rival.

The parent company of ArrowXL, another delivery firm they own, had been forced into administration by HSBC, its principal lender.

Half of the £1.2bn loan that the Barclays took from RedBird IMI and IMI was secured against their media assets, with the bulk of the remainder said to have been secured against other assets including Very Group.

At various points in the last decade, the Telegraph proprietors have explored a sale of the online shopping business, having valued it at over £3bn.

Very Group and Mr Zahawi both declined to comment.

Business

Pinewood-owner Aermont among suitors for £850m Village Hotels

Published

17 hours ago

May 12, 2024

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Pinewood-owner Aermont among suitors for £850m Village Hotels

The major backer of Pinewood Studios is among the suitors vying to buy Village Hotels, one of Britain’s biggest mid-market hotel chains.

Sky News understands Aermont, which specialises in real estate-backed investments, submitted an offer last week for Village Hotels, which is owned by KSL Capital Partners.

City sources said KSL was seeking offers worth in the region of £850m or more.

A number of other parties are also understood to have tabled bids ahead of a deadline last week.

Blackstone, the giant private equity firm, is considering making an offer but has yet to do so, according to insiders.

The auction is being handled by bankers at Morgan Stanley.

It comes months after attempts to sell Center Parcs UK were called off, while a mooted sale of Travelodge has so far failed to result in a deal.

Village Hotels comprises a portfolio of more than 30 properties from Aberdeen to Bournemouth, with rooms available at budget prices.

Founded in 1995 as Village Urban Resorts, the hotels feature pub-style restaurants and gyms.

KSL was reported to have paid £485m for the business when it bought it in 2014 from De Vere Group.

The Denver, Colorado-based buyout firm has also owned other UK hotel chains including Hotel du Vin and Malmaison.

Aermont and Blackstone declined to comment.

Business

Former Rank chief Birch in talks to run Ladbrokes-owner Entain

Published

2 days ago

May 11, 2024

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Former Rank chief Birch in talks to run Ladbrokes-owner Entain

Henry Birch, the former boss of Rank Group, is among the candidates vying to run Entain, the FTSE-100 owner of Ladbrokes.

Sky News has learnt that Mr Birch is one of a small number of candidates being considered by Entain to replace Jette Nygaard-Andersen as its permanent chief executive.

The recruitment process comes at a challenging time for Entain, which has been beset by boardroom upheaval and regulatory difficulties in various international markets.

Its stock has halved in the last year, leaving it with a market capitalisation of just under £5bn.

This weekend, sources close to the company confirmed that Mr Birch was a serious contender for the post, although they said others were also in contention.

An appointment could still be weeks or even a small number of months away, they added.

Mr Birch stepped down as chief executive of Very Group, the online retailer owned by the Barclay family, in 2022.

He is an experienced gambling industry executive, having spent four years as chief executive of William Hill Online prior to joining the London-listed multichannel gaming operator Rank Group.

He has also held roles at Leisure & Gaming plc and BettingCorp.

Under Mr Birch, Very Group broke the £2bn annual sales mark for the first time.

Investors in Entain have been pressing its board to recruit a new chief executive with substantial gambling experience as it grapples with a plunging share price and numerous regulatory and strategic challenges.

Last week, Sky News revealed that former bosses of bookies Coral and Skybet had rejected overtures to become its new boss.

Industry sources said that Dan Taylor, chief executive of Flutter Entertainment’s international operations, had also been approached, although it was unclear whether he was interested.

Entain has been under siege from activist investors for months.

In January, it announced that Ricky Sandler, who runs Entain shareholder Eminence Capital, would join its board as a non-executive director.

Last month, it said that Barry Gibson, its chairman, would retire later this year and be replaced by interim chair, and former acting CEO, Stella David.

Entain has hired bankers to sell PartyPoker and other non-core operations, which the Financial Times reported could include Netherlands-based BetCity, which Entain bought for £398mn last year.

As well as Ladbrokes, Entain owns Coral and a stake in BetMGM, a major US betting player.

MGM Resorts, the US casino operator behind the Bellagio in Las Vegas, attempted to buy Entain in 2021 but was rebuffed at a much higher valuation than the UK company’s shares trade at now.

MGM has since ruled out a further bid, although analysts expect it to return at some stage.

The company has faced a deluge of regulatory problems, triggering sharp criticism of its governance and business practices.

Last December, it was ordered to pay £615m for failing to prevent bribery at its former Turkish subsidiary under a deferred prosecution agreement.

Shares in Entain closed at 778.8p on Friday, giving the company a market capitalisation of £4.98bn.

Entain declined to comment, while Mr Birch could not be reached for comment.