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The Post Office scandal will be back in the spotlight today, when MPs hear evidence from a number of witnesses including campaigner and wronged sub-postmaster Alan Bates.

Mr Bates, whose story inspired the ITV hit drama Mr Bates vs the Post Office, will appear in front of parliament’s Business and Trade Committee alongside other figures, including business minister Kevin Hollinrake and representatives from Fujitsu, which developed Horizon, the faulty IT system at the heart of the scandal.

MPs on the committee will quiz the witnesses about the process for delivering fair and timely compensation for the victims of the scandal, which occurred between 1999 and 2015.

What is the scandal about?

The Post Office Horizon IT scandal saw more than 700 sub-postmasters and mistresses convicted after faulty Fujitsu software made it appear as though money was missing from their branches.

Last Wednesday Rishi Sunak confirmed that all victims of the IT scandal will have their convictions quashed under fast-tracked legislation after growing pressure to take more serious action.

Number 10 also confirmed that sub-postmasters and sub-postmistresses would be eligible for a £75,000 upfront payment with the new law, but acknowledged that would not be sufficient for everyone.

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Post Office victim: ‘I was spat on’

The move was prompted by the TV drama, Mr Bates Vs The Post Office, which chronicled the campaigners’ two-decade fight for justice and detailed the poor treatment they received at the hands of their employer.

Mr Sunak said last week that the government had paid almost £150m in compensation to over 2,500 victims and pledged that victims would be “swiftly exonerated and compensated”.

Who is appearing before the committee?

Among those who will give evidence to MPs today is Alan Bates, a key member of Justice For Sub-postmasters Alliance whom the ITV drama was named after.

Mr Bates, who was played by the actor Toby Jones in the drama, was one one of six lead claimants in the original court battle with the Post Office. He believes he was dismissed because he flagged up problems with the Horizon system.

Speaking to Sky News ahead of his questioning by MPs, Mr Bates said he had “one concern – and it’s to get the compensation right – that’s it.

“They should be moving heaven and earth to get it done and get it done fast.”

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‘The whole thing is unbelievable’

He will appear alongside Jo Hamilton, who was played by Monica Dolan and whose story also featured heavily in the series.

The sub-postmistress in South Warnborough, Hampshire, previously told Sky News of the pressure she faced to plead guilty and how she felt “backed into a corner”.

“I felt I had a gun held to my head and had no choice,” added Ms Hamilton.

“They said if I pleaded guilty to false accounting and paid the £36,000 shortfall, they would drop the theft charge.

“I was so terrified of going to prison, I couldn’t think of anything else. It was terrifying.”

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‘They made me look like a criminal’

Crucially, the committee will also hear from Paul Patterson, the chief executive of Fujitsu’s Europe arm – the first time an executive has answered questions on the scandal – and Nick Read the current chief executive of the Post Office.

Other witnesses include Dr Neil Hudgell, executive chairman of Hudgell Solicitors, the firm which represented 74 people who have already had their convictions quashed.

Read more:
Who are the key figures in Post Office scandal?
TV drama writer warned ‘nobody would watch’ programme
Post Office scandal: Horizon developer Fujitsu handed £6.8bn in public contracts since 2012

Lord Arbuthnot of Edrom, the Tory peer and former MP who has campaigned on behalf of the sub-postmasters for nearly 15 years, will also give evidence.

Postal services minister Kevin Hollinrake – who has argued that figures at the Post Office who are found to be responsible for the scandal should be jailed as the “ultimate deterrent” – will also appear before MPs, as will Carl Cresswell, director of business resilience at the Department for Business and Trade.

What is happening at the Post Office inquiry hearing?

Separately, the Post Office Horizon IT inquiry will continue in London and will hear from Rajbinder Sangha, the release management coordinator of Fujitsu Services and former member of Fujitsu’s fraud and litigation support office.

A statutory inquiry opened in 2021 into what has been described as the “worst miscarriage of justice in recent British legal history”.

On Thursday at the inquiry, former investigator Stephen Bradshaw, who was involved in the criminal investigation of nine sub-postmasters, denied he and others “behaved like mafia gangsters” in the criminal probe of several sub-postmasters.

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Senior King aide was head of royal protection when Prince Andrew ‘asked officer to dig up dirt on accuser’

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Senior King aide was head of royal protection when Prince Andrew 'asked officer to dig up dirt on accuser'

A current senior member of the King’s household was the head of royal protection at the time Prince Andrew allegedly asked one of his police officers to dig up dirt on Virginia Guiffre, Sky News has discovered.

Lord Peter Rosslyn, who is now Lord Steward and Personal Secretary to the King and Queen, was head of Royalty and Diplomatic Protection between 2003-2014.

It is not clear if Lord Rosslyn – known at the time as Commander Peter Loughborough – was made aware of Prince Andrew’s request. However, it reportedly happened in 2011 when it’s claimed Andrew wrote in an email that he passed the date of birth and confidential social security number of his accuser, Virginia Guiffre, to one of his close protection team to find out information about her.

Lord Peter Rosslyn arriving at the Duchess of Kent's funeral. Pic: PA
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Lord Peter Rosslyn arriving at the Duchess of Kent’s funeral. Pic: PA

At the weekend, the Metropolitan Police said it was “actively looking into the claims made”.

Sky News approached Lord Rosslyn for comment, which was passed to Buckingham Palace.

A palace spokesperson said: “As you may or may not be aware, Lord Rosslyn works for The Royal Household and thus this issue has been referred to me. However, since this matter relates to his time in service with the Metropolitan Police, they would be the appropriate body to approach with media enquiries of this nature.”

The Met Police had nothing further to add.

Police sources have told Sky News the officer (CPO) involved would have been expected to escalate this request from Andrew to his superiors.

While there may have been other members of senior staff between the CPO and Lord Rosslyn, the request should have been considered serious enough to be referred to the top of the Royalty and Diplomatic Service.

Those with knowledge of the royal household tell us Lord Rosslyn is one of the King’s closest and most trusted members of staff.

His role as Lord Steward involves managing all aspects of the King’s personal affairs, and the non-state business of the monarch.

Who is Lord Peter Rosslyn?

As well as being much respected by Queen Elizabeth II, and affectionately known as her “favourite policeman”, in 2014 Lord Rosslyn was appointed as Master of the Household of the then Prince of Wales and the Duchess of Cornwall at Clarence House.

In February 2003, he was made Lord Steward by the King, thereby becoming the “first dignitary of the King’s court” – a sign that the monarch wanted to keep him around.

While Andrew’s alleged attempts to smear Virginia Guiffre would have been morally wrong, he also would have been asking his police officer to put his career on the line.

Any attempt to use police databases to find information on an innocent individual not connected to a crime would have been a sackable offence, and unlawful.

In his statement on Friday, Prince Andrew again stressed that he vehemently denies the allegations against him.

A Buckingham Palace source told Sky News that the recent claims that have emerged are being viewed by the Royal Family with “very serious and grave concern” and “should be examined in the proper and fullest ways”.

Prince Andrew's signature
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Prince Andrew’s signature

Andrew should give evidence to US authorities – minister

The revelation comes as a government minister said Andrew should give evidence to US authorities – and anger grows after it emerged he had been paying “peppercorn rent” for two decades.

On Friday, Andrew announced he was giving up his royal titles, including the Duke of York, after new, damaging reports about his relationship with paedophile financier Jeffrey Epstein.

Passages from the memoir released on Tuesday of the late Virginia Giuffre, who accused Prince Andrew of sexually assaulting her, provide further details of their alleged encounters.

Prince Andrew has always strenuously denied the allegations.

Business Secretary Peter Kyle said on Tuesday he would “support” Prince Andrew giving evidence to US prosecutors.

He added he would also support any decision by the Met Police to investigate allegations that Prince Andrew used a Met bodyguard to gain information on Giuffre.

It comes as anger continues to grow over Prince Andrew’s housing arrangements.

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‘Victims should be in driver’s seat’

‘Peppercorn rent’

The royal has only paid “peppercorn rent” for more than two decades at his Windsor mansion, according to a National Audit Office report published in 2005.

“Peppercorn rent” is a legal term used in leases to show that rent technically exists, so the lease is valid, but it’s nominal, often literally £1 a year or just a symbolic amount.

In practice, it means the tenant pays no rent.

It also shows he was required to pay a further £7.5m for refurbishments.

A document from the Crown Estate also shows he signed a 75-year lease on the property in 2003.

It reveals he paid £1m for the lease and that since then he has paid “one peppercorn” of rent “if demanded” per year.

Read More:
Pressure grows on Andrew to be stripped of dukedom
Key claims from Andrew accuser’s posthumous memoir

The agreement also contains a clause which states the Crown Estate would have to pay Andrew around £558,000 if he gave up the lease.

Pressure is mounting on him to give up the 30-bedroom mansion.

Senior Tory Robert Jenrick called for Prince Andrew to live privately.

‘He has disgraced himself’

He said: “It’s about time Prince Andrew took himself off to live in private and make his own way in life.

“He has disgraced himself, he has embarrassed the royal family time and again. I don’t see why the taxpayer, frankly, should continue to foot the bill at all. The public are sick of him.”

Virginia Giuffre's posthumous memoir was released today. Pic: Reuters
Image:
Virginia Giuffre’s posthumous memoir was released today. Pic: Reuters

Mr Kyle, however, said that would be a question for King Charles.

But he did say MPs could bring forward a motion to strip Prince Andrew of his remaining titles, adding it would be up to Speaker Sir Lindsay Hoyle to choose one of these motions for debate.

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Bank tax could hurt households and business lending, UK’s biggest mortgage provider says

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Bank tax could hurt households and business lending, UK's biggest mortgage provider says

The chief executive of Lloyds Banking Group has warned that a tax raid on the banks could harm lending to households and businesses.

In an exclusive interview with Sky News at the government’s regional investment summit, Charlie Nunn urged the chancellor to ignore calls for a windfall tax on commercial banks even though the sector is enjoying record profits.

“If we are going to have the ability and the confidence to continue to lend into the real economy, to help households and businesses invest, we need to make sure that the financial services system and Lloyds Banking Group really remains healthy in that context,” he said.

Money latest: Which country pays the most for a pint?

Charlie Nunn was appointed Lloyds boss in November 2020. Pic: PA
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Charlie Nunn was appointed Lloyds boss in November 2020. Pic: PA

Britain’s four largest banks – HSBC, Barclays, Lloyds Banking Group and NatWest – posted record profits of £45.9bn last year and are on course for another bumper performance this year, thanks to higher interest rates.

Their financial success has raised speculation that the sector could be in the chancellor’s firing line at next month’s budget.

More on Banking

Rachel Reeves could raise the bank surcharge – a levy on bank profits in addition to corporation tax.

The Conservative government cut the levy from 8% to 3% in 2023. Returning it to 8% could raise £2bn for a chancellor who needs to find anywhere up to £50bn to meet her fiscal rules.

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Chancellor faces tough budget choices

Some have suggested a separate windfall tax, which could raise closer to £8bn.

Mr Nunn said such a move risked undermining the health of a sector which underpins the country’s economic prosperity.

“Obviously, taxes are a matter for the government to look at. But it’s definitely one of the factors that impact our ability to support the real economy in the UK,” he said.

A raid on the banks would cause pain to a sector that is already facing substantial costs because of the car finance scandal.

Lloyds, one of the most exposed lenders, has set aside nearly £2bn to cover potential compensation arising from the Financial Conduct Authority’s (FCA) redress scheme.

The FCA established the scheme to draw a line under the long-running mis-selling scandal, in which lenders failed to disclose commission paid to brokers, meaning many customers ended up paying more than they should have for their car finance.

Under the FCA’s scheme, eligible customers – as many as 14.2 million – could receive an average of £700 each.

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Payouts due after motor finance scandal

There is mounting anger within the industry at the way the scheme, which is going out to consultation, has been set up. Mr Nunn said the proposal was too generous to customers and not proportionate to the harms actually caused to customers.

He did not rule out the possibility of a judicial review but, in the first instance, called for a rethink, warning that the current scheme risks scaring away investors, causing an exodus from the market and driving up the cost and availability of credit.

“When you look at the implication of what’s being proposed by the FCA, it’s going to potentially take 20 years of profitability of the car finance industry. And, what does that mean for invest ability in that industry and for other investors and businesses looking to invest in the UK? There’s real concern that this is going to create an invest ability issue,” he said.

“Our concern is will the industry continue to function? Will it support all customers across the whole of the UK that need finance? Will other investors be looking at this and wondering whether the UK is a place they should invest, if retrospectively we can take away 20 years of profits?”

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Anger grows over Prince Andrew’s ‘peppercorn rent’ arrangement as accuser’s memoirs released

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Senior King aide was head of royal protection when Prince Andrew 'asked officer to dig up dirt on accuser'

Prince Andrew should give evidence to US authorities, a government minister has said, as anger grows after it emerged he had been paying “peppercorn rent” for two decades.

On Friday, Prince Andrew announced he was giving up his royal titles, including the Duke of York, after new, damaging reports about his relationship with paedophile financier Jeffrey Epstein.

Passages from the memoir released on Tuesday of the late Virginia Giuffre, who accused Prince Andrew of sexually assaulting her, provide further details of their alleged encounters.

Prince Andrew has always strenuously denied the allegations.

Business Secretary Peter Kyle said on Tuesday he would “support” Prince Andrew giving evidence to US prosecutors.

He added he would also support any decision by the Met Police to investigate allegations that Prince Andrew used a Met bodyguard to gain information on Giuffre.

It comes as anger continues to grow over Prince Andrew’s housing arrangements.

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‘Victims should be in driver’s seat’

‘Peppercorn rent’

The royal has only paid “peppercorn rent” for more than two decades at his Windsor mansion, according to a National Audit Office report published in 2005.

“Peppercorn rent” is a legal term used in leases to show that rent technically exists, so the lease is valid, but it’s nominal, often literally £1 a year or just a symbolic amount.

In practice, it means the tenant pays no rent.

It also shows he was required to pay a further £7.5m for refurbishments.

A document from the Crown Estate also shows he signed a 75-year lease on the property in 2003.

It reveals he paid £1m for the lease and that since then he has paid “one peppercorn” of rent “if demanded” per year.

Read More:
Pressure grows on Andrew to be stripped of dukedom
Key claims from Andrew accuser’s posthumous memoir

The agreement also contains a clause which states the Crown Estate would have to pay Andrew around £558,000 if he gave up the lease.

Pressure is mounting on him to give up the 30-bedroom mansion.

Senior Tory Robert Jenrick called for Prince Andrew to live privately.

‘He has disgraced himself’

He said: “It’s about time Prince Andrew took himself off to live in private and make his own way in life.

“He has disgraced himself, he has embarrassed the royal family time and again. I don’t see why the taxpayer, frankly, should continue to foot the bill at all. The public are sick of him.”

Virginia Giuffre's posthumous memoir was released today. Pic: Reuters
Image:
Virginia Giuffre’s posthumous memoir was released today. Pic: Reuters

Mr Kyle, however, said that would be a question for King Charles.

But he did say MPs could bring forward a motion to strip Prince Andrew of his remaining titles, adding it would be up to Speaker Sir Lindsay Hoyle to choose one of these motions for debate.

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