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Fujitsu is set to have received more than £3.4bn through contracts from Treasury-linked organisations since 2019, despite its role in the Post Office scandal, MPs have found.

The international tech firm, which is under intense scrutiny, was awarded around £1.4bn worth of deals since a 2019 High Court ruling concluding there had been numerous bugs and errors in its Horizon IT system.

More than £2bn worth of contracts were agreed before 2019 and remained active in the following period, the Commons Treasury Committee said.

The committee – which examines Treasury expenditure and policy – wrote to organisations last month including HM Revenue and Customs (HMRC), the Financial Conduct Authority (FCA) and the Bank of England (BoE) demanding details of their agreements with Fujitsu.

MPs called for the revelation of contracts after the boss of Fujitsu in Europe admitted that staff knew of faults in Horizon as far back as 1999.

The committee reported all three spent considerable sums with Fujitsu Services Ltd or Fujitsu Global-owned entities:

  • HMRC awarded Fujitsu eight contracts worth £1.39bn since the ruling in 2019, while a further six contracts before the ruling remained active after 2019 but have since ended.
  • The FCA – an independent regulator from the government but which reports to the Treasury – agreed deals worth around £630m dating back to 2007 which continued to run after the High Court judgment, and still maintains six contracts worth a combined total of around £9m.
  • The Bank of England confirmed it had one contract worth £417,000 from 2019 which expired in August 2020.

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Fujitsu boss apologises to subpostmasters

The committee had asked them whether Fujitsu’s role in the Horizon scandal was considered during the tendering process and if they thought about ending the deals in light of the scandal.

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It said the only response received was about a possible termination from the FCA which confirmed it considered closing a contract with the firm due to poor performance but decided to keep its services.

Chairwoman of the committee and Tory MP Harriett Baldwin said she “hopes this will aid transparency and scrutiny around the role of Fujitsu as a public sector supplier”.

The spotlight is on Fujitsu following the ITV drama Mr Bates Vs The Post Office, which depicted how hundreds of sub-postmasters and sub-postmistresses were wrongly held responsible for accounting errors in the faulty software developed by the company.

Between 1999 and 2015, more than 700 were prosecuted, causing many to lose their jobs, livelihoods and reputations.

It is considered the biggest miscarriage of justice in British history.

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Britain’s biggest miscarriages of justice

Read more:
Post Office hero to refuse ‘offensive’ compensation offer
New concerns raised over second IT system used in branches

Rishi Sunak announced that a new law would be introduced to exonerate and compensate those caught up in the Horizon scandal and that those who were part of the group litigation order against the Post Office would also be eligible for an upfront payment of £75,000.

Fujitsu offered its “deepest apologies” to victims of the scandal and said it would contribute towards compensation payments for those wrongly convicted.

On the contracts, a HMRC spokesperson said: “HMRC works with hundreds of IT partners – big and small – and all of our contracts are publicly available through Contracts Finder.

“The size and complexity of our IT estate means that multiple partners are involved in building and maintaining almost all of our systems and services.”

A government spokesperson said: “The impact the Horizon scandal has had on postmasters and their families is utterly horrendous, and it is crucial that something like this can never happen again.

“That is why we have launched a statutory inquiry into the scandal to get to the bottom of what went wrong, as well as providing compensation for those affected.

“We welcome Fujitsu’s decision to pause bidding for work with new government customers until such time as the inquiry concludes. Ahead of that, and as with all contracts, we continue to keep Fujitsu’s conduct and commercial performance under review.”

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Trump says Musk ‘off the rails’ for forming political party to rival GOP

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Trump says Musk ‘off the rails’ for forming political party to rival GOP

Trump says Musk ‘off the rails’ for forming political party to rival GOP

US President Donald Trump has blasted Elon Musk’s plan to start a new political party that could splinter the Republican vote in the 2026 midterm elections.

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MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

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MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

An MP who decided until recently to “never speak” about the abuse he suffered as a child has shared his harrowing story so that “no kid has to go through” what he did.

Josh Babarinde describes being physically abused by his mother’s former partner from the age of four, and remembers crying himself to sleep under the covers “hearing shouts, hearing screams and things smash”.

He says he became hypervigilant growing up and felt safe at school but “like he was treading on eggshells” in his own home.

The Eastbourne MP, who is also the Liberal Democrats’ justice spokesperson, says his experience has driven his politics. He is calling on the government to stop abusers “slipping through the net” and being released from prison early.

Opening up about his story in his twenties was “difficult” but looking back, Mr Babarinde says, he is “so proud of the resilience of that kid”.

The MP recently found his childhood diary containing Star Wars drawings alongside an entry he wrote from the bathroom. The diary, he recalls, wrote: “I’m really going to try to go (to the toilet) but I can’t. Oh my goodness, I’m gonna be in so much trouble, I’m going to get smacked so hard.”

Then an entry five minutes later: “I still haven’t done anything, I’m going to be in so much trouble.”

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He says reading the entry reminded him of how “helpless” he felt.

“It was mortifying,” he says. “An abuser takes away your sense of self-worth.”

Josh Babarinde speaking to Sky's Ali Fortescue.
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Mr Babarinde says he wants the government to ‘properly recognise domestic abuse crimes in the law’

The 32-year-old is calling on the government to change the law to make domestic abuse a specific criminal offence. The change would mean, he argues, abusers can no longer effectively disguise their history under other offences like assault.

He says the Ministry of Justice’s early release scheme, which has seen thousands of prisoners released early to ease overcrowding, has failed to exclude domestic abusers despite government promises because there is no formal categorisation for offenders.

It is impossible, he argues, to know exactly how many domestic abusers are in prison currently so perpetrators are “slipping through the net” on early release.

Read more from Sky News:
Remembering the bravery of 7/7 victims and responders 20 years on
Met Police chief calls for ‘mega’ forces in push for shake-up

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January: Rising violence against women and girls

Mr Babarinde says the uncertainty means victims and survivors are not able to prepare for their abuser’s release.

He said: “They might need to move house or move their kids to a new school, shop in different places. All of these kind of things are so important, and so that’s why that commitment the government made was so important.”

A spokesperson for the Ministry of Justice said: “Our thoughts are with all victims of domestic abuse – it takes immense courage to speak out.

“We are building a justice system that puts victims first – strengthening support, increasing transparency, and giving people the confidence to come forward and be heard.”

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Another tantrum from the Labour backbenches is inevitable

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

In common with many parents across the country, here’s a conversation that I have with my young daughter on a semi-regular basis (bear with me, this will take on some political relevance eventually).

Me: “So it’s 15 minutes until your bedtime, you can either have a little bit of TV or do a jigsaw, not both.”

Daughter: “Ummmm, I want to watch TV.”

Me: “That’s fine, but it’s bed after that, you can’t do a jigsaw as well.”

Fast-forward 15 minutes.

Me: “Right, TV off now please, bedtime.”

(Pause)

Daughter: “I want to do a jigsaw.”

Now replace me with the government, the TV and jigsaw options with axing welfare cuts and scrapping the two-child cap, and my daughter with rebellious backbenchers.

Politics latest: Former Labour leader calls for wealth tax on assets above £10m

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Rachel Reeves’s fiscal dilemma

That is the tension currently present between Downing Street and Labour MPs. And my initial ultimatum is the messaging being pumped out from the government this weekend.

In essence: you’ve had your welfare U-turn, so there’s no money left for the two-child cap to go as well.

As an aside – and before my inbox fills with angry emails lambasting me for using such a crude metaphor for policies that fundamentally alter the lives of some of the most vulnerable in society – yes, I hear you, and that’s part of my point.

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Welfare U-turn ‘has come at cost’

For many in Labour, this approach feels like the lives of their constituents are being used in a childish game of horse-trading.

So what can be done?

Well, the government could change the rules.

Altering the fiscal rules is – and will likely remain – an extremely unlikely solution. But as it happens, one of Labour’s proverbial grandparents has just popped round with a different suggestion.

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Welfare: ‘Didn’t get process right’ – PM

A wealth tax, Lord Neil Kinnock says, is the necessary outcome of the economic restrictions the party has placed on itself.

Ever the Labour storyteller, Lord Kinnock believes this would allow the government to craft a more compelling narrative about whose side this administration is on.

That could be valuable, given one of the big gripes from many backbench critics is that they still don’t really understand what this prime minister stands for – and by extension, what all these “difficult decisions” are in aid of.

The downside is whether it will actually raise much money.

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Is Corbyn an existential risk to Labour?

The super-rich may have lots of assets to take a slice from, but they also have expensive lawyers ready to find novel ways to keep their client’s cash away from the prying eyes of the state.

Or, of course, they could just leave – as many are doing already.

In the short term, the future is a bit easier to predict.

If Downing Street is indeed now saying there is no money to scrap the two-child cap (after heavy briefing in the opposite direction just weeks ago), an almighty tantrum from the backbenches is inevitable.

And as every parent knows, the more you give in, the harder it becomes to hold the line.

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