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Kemi Badenoch, the business secretary, is seeking urgent talks with Fujitsu to thrash out a compensation package for sub-postmasters affected by the Post Office Horizon scandal.

Sky News has learnt that Ms Badenoch wrote to Takahito Tokita, the Japanese company’s chief executive, in the wake of an acknowledgement from Fujitsu bosses that it had a “moral obligation” to contribute to the compensation bill.

In the letter, parts of which have been seen by Sky News, the minister wrote that she would “value the opportunity to discuss Fujitsu’s involvement in the Post Office Horizon scandal“.

“As you may know, my department is at the forefront of our government’s efforts to right the wrongs of the past.

“I am committed to ensuring that postmasters affected get the justice they deserve.”

“This is why the UK government announced new legislation last week, to overturn wrongful convictions and a plan to ensure swifter access to compensation.”

The scale of the eventual bill remains unclear, although ministers have said that the government has set aside £1bn to fund payouts to convicted and other affected sub-postmasters.

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Government insiders believe that Fujitsu will be put under pressure to fund a substantial sum running to hundreds of millions of pounds after both it and the Post Office – which is owned by the government – lied and obstructed justice for many years.

On Tuesday, Paul Patterson, Fujitsu’s European chief executive, told MPs the company was “truly sorry” for its conduct, which has drawn renewed scrutiny after ITV broadcast Mr Bates vs the Post Office, a drama about what has been labelled Britain’s biggest-ever miscarriage of justice.

Kevin Hollinrake, the minister in Ms Badenoch’s department responsible for postal affairs, has been praised by some of those involved in the scandal for having repeatedly raised it in parliament while he was on the backbenchers.

Mr Hollinrake was also responsible for introducing £600,000 payouts last autumn for those whose convictions had been overturned.

He said earlier this week that negotiations with the company would be focused on “maximising the contribution to the taxpayer”.

“It’s a very significant bill [which] may end up north of £1bn.

“We should expect people who contributed to this scandal to contribute financially.”

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Post Office and Fujitsu grilled by MPs

Nevertheless, both Alan Bates, the architect of the original efforts to expose the fraud against sub-postmasters, and Jo Hamilton, another of the victims highlighted in the ITV drama, have criticised the bureaucracy attached to the compensation process.

“I understand that we are awaiting the conclusions of the Williams inquiry, but ahead of that I would welcome a discussion with you on the type of response Fujitsu might make and the role you foresee Fujitsu playing towards securing justice for those affected,” Ms Badenoch added in her letter to Mr Tokita.

One source said that Ms Badenoch had been scheduled to meet Fujitsu officials during a visit to Japan last year, but that talks had not taken place owing to diary clashes.

The Horizon contract is said to have earned £2.5bn for Fujitsu despite protracted and widespread warnings that the system was flawed.

To compound its role in creating the accounting software at the heart of the crisis, Fujitsu staff also gave evidence as expert witnesses during private prosecutions brought by the Post Office.

The scandal has raised questions about the behaviour of both the Japanese company and the Post Office, as well as the latter’s government shareholder body responsible for its oversight.

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RWAs build mirrors where they need building blocks

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RWAs build mirrors where they need building blocks

RWAs build mirrors where they need building blocks

Most RWAs remain isolated and underutilized instead of composable, DeFi-ready building blocks. It’s time to change that.

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Collapsed crypto firm Ziglu faces $2.7M deficit amid special administration

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Collapsed crypto firm Ziglu faces .7M deficit amid special administration

Collapsed crypto firm Ziglu faces .7M deficit amid special administration

Thousands of savers face potential losses after a $2.7 million shortfall was discovered at Ziglu, a British crypto fintech that entered special administration.

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Heidi Alexander says ‘fairness’ will be government’s ‘guiding principle’ when it comes to taxes at next budget

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Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget

Another hint that tax rises are coming in this autumn’s budget has been given by a senior minister.

Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.

Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week – including on an away day on Friday.

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Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.

Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.

“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”

Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to sit in a TV studio today and speculate on what the contents of that budget might be.

“When it comes to taxation, fairness is going to be our guiding principle.”

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Afterwards, shadow home secretary Chris Philp told Phillips: “That sounds to me like a barely disguised reference to tax rises coming in the autumn.”

He then went on to repeat the Conservative attack lines that Labour are “crashing the economy”.

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Chris Philp also criticsed the government’s migration deal with France

Mr Philp then attacked the prime minister as “weak” for being unable to get his welfare reforms through the Commons.

Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms.

Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes.

With the savings from these proposed changes – around £5bn – already worked into the government’s sums, they will now need to find the money somewhere else.

The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.

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