A Post Office fraud investigator today denied he and other investigators “behaved like mafia gangsters” – as he faced questions at the inquiry into the Horizon IT system.
Stephen Bradshaw, a Post Office employee for more than 45 years, was involved in the criminal investigation of nine sub-postmasters.
During more than seven hours of questioning at the inquiry in London, a bullish Mr Bradshaw…
• Denied he and other investigators “behaved like mafia gangsters”; • Refuted claims he was a bully and called a sub-postmistress a “b****h” on the phone; • Said he was “not technically minded” when asked why he did not question Horizon system; • Told the inquiry he was “no expert” on the system, but had working knowledge; • Said statement he signed saying Post Office had “absolute confidence” in Horizon was not written by him.
Throughout his witness statement, submitted earlier to the inquiry, Mr Bradshaw said his investigations had been conducted in a “professional” manner.
He also said in the statement: “I refute the allegation that I am a liar.”
‘Not technically minded’
Mr Bradshaw, a witness in the inquiry into the Post Office Horizon scandal, began giving evidence on Thursday morning.
His evidence was given at the start of phase 4 of the inquiry, which has been hearing witnesses since February 2022 and has already heard from many of the victims.
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Mr Bradshaw was involved in the criminal investigation of nine sub-postmasters, including Lisa Brennan, a former counter clerk at a post office in Huyton, near Liverpool, who was falsely accused of stealing £3,000 in 2003. She was one of the first witnesses to the inquiry.
Image: Stephen Bradshaw gives evidence to the inquiry
Mr Bradshaw was questioned by counsel to the inquiry, Julian Blake, about why he did not question the reliability of the Horizon system.
He acknowledged he was aware of newspaper reports of technical bugs but said: “I’m not technically minded with that. I would expect that to come from the people above.
“If there was an issue, I would expect Fujitsu [the maker of Horizon] to inform the Post Office and the Post Office to let us know what the issues are.”
Asked how early on he was aware of Horizon being an issue, he said 2010, but “some may have mentioned it earlier”.
‘Investigations done correctly’
Mr Blake also asked Mr Bradshaw if, over the past 20 years, he “may have been involved in what has been described as one of the largest miscarriages of justice in British history?”.
Mr Bradshaw said he had “no reason to suspect at the time” that there was anything wrong with the Horizon system, because his team had “not been involved”.
“The investigations were done correctly,” he said.
“The investigations were done at the time, no problems were indicated by anybody that there were issues with the Horizon system.”
‘You have told me a pack of lies’
Mr Bradshaw had previously been accused by Merseyside sub-postmistress Rita Threlfall of asking her for the colour of her eyes and what jewellery she wore, before saying: “Good, so we’ve got a description of you for when they come”, during her interview under caution in August 2010.
Another sub-postmistress, Jacqueline McDonald, claimed she was “bullied” by Mr Bradshaw during an investigation into a shortfall of more than £94,000.
In her interview with Mr Bradshaw, which was read to the inquiry, Ms McDonald was accused by the investigator of telling him a “pack of lies”.
The exchange between Ms McDonald and Mr Bradshaw, read by Mr Blake, included the investigator saying: “Would you like to tell me what happened to the money?”
Ms McDonald replies: “I don’t know where the money is I’ve told you.”
Mr Bradshaw continues: “You have told me a pack of lies.”
Ms McDonald says: “No I haven’t told you a pack of lies because I haven’t stolen a penny.”
Mr Blake said the witness’s words sounded “somewhat like language you might see in a 1970s television detective show”.
Responding to Ms McDonald’s allegations of his aggressive behaviour in his witness statement, Mr Bradshaw said: “I also refute the claim that Jacqueline McDonald was bullied.
“From the moment we arrived, the auditor was already on site, conversations were initially (held) with Mr McDonald, the reason for our attendance was explained, Mr and Mrs McDonald were kept updated as the day progressed.”
At the inquiry, Mr Bradshaw added: “Ms Jacqueline McDonald is also incorrect in stating Post Office investigators behaved like mafia gangsters looking to collect their bounty with the threats and lies.”
Post Office bonuses
Mr Bradshaw was asked about whether staff were paid bonuses for successful prosecutions.
He told the inquiry that “bonuses have always been paid by the Royal Mail Group and Post Office”.
Image: Sir Wyn Williams is chairing the inquiry
Asked if success in a criminal case would impact the amount paid, Mr Bradshaw replied: “No, not at all.”
“I’m paid whether one case is done or a thousand cases,” he said.
“We don’t get any extra bonus because of this. It’s how well you do your job.”
Mr Blake then asked: “If you’re considered to have protected the business and prevented the wider impact on the business, do you think that that might lead to a bonus?”
Mr Bradshaw replied: “It may do, and it may not do.”
‘Absolute confidence in Horizon’
Mr Bradshaw was asked about a letter, signed by him in November 2012, in which he declared the Post Office’s “absolute confidence” in the “robustness and integrity” of the Horizon system
He told the inquiry that the statement was written by lawyers from the law firm Cartwright King.
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Asked if it was appropriate for him to declare “confidence” in the IT system in the 2012 statement, he said: “I was given that statement by Cartwright King and told to put that statement through.
“In hindsight… there probably should have been another line stating, ‘These are not my words’.”
Mr Bradshaw told the inquiry he was not “technically minded” and was not equipped to know whether there were bugs or errors in the Horizon system.
The statutory inquiry, which began in 2021 and is chaired by retired judge Sir Wyn Williams, has previously looked at the human impact of the scandal, the Horizon system roll-out and the operation of the system, and is now probing the action taken against sub-postmasters.
The probe was established to ensure there is a “public summary of the failings which occurred with the Horizon IT system at the Post Office” and subsequently led to the wrongful convictions of sub-postmasters.
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I’ve interviewed Angela Rayner a number of times and know her to be a robust operator with a very thick skin.
But on Wednesday morning, as she walked into our interview to admit that she had underpaid tax on her Hove home and explain the personal circumstances around that, she was visibly upset.
For days, this story has run on and now we have a better picture of why. The deputy prime minister told me she had to ask for court permission to release details of her domestic arrangements to give the background to the tax trouble she now finds herself in. And on Wednesday, she revealed all.
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It is a complicated and personal story, but in essence, her family had a trust set up in 2020 to provide for her son who has lifelong disabilities to ensure that he would be provided for and protected.
When she divorced her husband in 2023, some of the interest in the family home was transferred to the trust and then in 2025, she sold her remaining interest in the property to her teenage son’s trust.
She then used the proceeds from that to buy the new property in Hove, using the money from her family home in Ashton to pay the deposit.
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7:19
Rayner admits she didn’t pay enough tax
Ms Rayner says she was advised that the home she bought was liable for the standard rate of stamp duty. It now turns out that advice was wrong and she owes tens of thousands in underpaid tax, because Hove is classified as her second home rather than her main residence.
She says it was a genuine mistake and has referred herself to the PM’s independent standards commissioner and informed HMRC. She says she will pay any additional tax owed.
The deputy PM was clearly upset in our interview by having to disclose private details about her teenage children.
I was left in little doubt that she had felt forced to share information about them that she really didn’t want to share.
She also admitted that she had discussed packing it all in with her ex-husband and children rather than putting this personal stuff into the public domain, but her family wanted her to go public to answer media reports that she had acted in a “hypocritical way”.
Image: Ms Rayner appeared at PMQs moments after the interview
“We felt that under the circumstances that having that reputation, for me as their mother, was more damaging than correcting the record on what we were trying to do,” she said.
But this is much more than just trying to save Ms Rayner’s reputation. Her political career is on the line, and, at the moment, it is unclear whether she will be able to continue as deputy prime minister.
She told me in our interview that the prime minister “knows the circumstances” and “knows the challenges that my son has faced and the background to all of that”, and it is now for the PM’s independent adviser on ministerial standards, Sir Laurie Magnus, to look at the evidence that she was advised she did not have to pay a stamp duty surcharge.
He has a reputation for being quick and if he finds Ms Rayner broke the ministerial code, it will be hard to see how Sir Keir Starmer will not accept that advice.
On top of that, HMRC is also investigating the deputy prime minister and if she is found to have been careless around her tax, she might face a penalty on top of the stamp duty owed, which will again put her under huge pressure.
There is also the political fall out for a politician who has gone in hard on Tories over tax questions for years.
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20:00
Angela Rayner blames incorrect tax advice
Defending her from the attacks that are now surely to come is going to burn through a lot of political capital of a government already in trouble. Will her colleagues around the cabinet table and on the backbenches have the stomach for it?
When I asked her in our interview whether she really believed her position was sustainable, given she had underpaid on tax and that she was the housing minister, she told me that she hoped “people can see what has happened and see that I wasn’t trying to dodge tax”, and when she realised that advice was inaccurate she “took immediate steps to do the right thing -you should pay the tax that is owed”.
“Hopefully, people can see there isn’t any intention to deceive, to avoid, to be hypocritical in the way in which I have conducted myself,” she said.
Ms Rayner is never far from the headlines and has often found herself under fire in her political career, rising to the second most powerful office in the country from the most humble of backgrounds.
But she knows too that despite complicated family issues, she has made a very serious error indeed and one which she would have been quick to criticise had the perpetrator been a political opponent.
She has come out fighting today, but whether she can survive is now beyond her control.