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Kemi Badenoch has said former Post Office chair Henry Staunton was being investigated over bullying allegations before his dismissal – as she accused him of seeking “revenge” against the government.

The business secretary told the Commons that allegations regarding Mr Staunton’s conduct, including “serious matters such as bullying”, were being examined and concerns had also been raised about his “willingness to co-operate” with the formal investigation.

Speaking in the Commons, Ms Badenoch said: “Mr Staunton claimed that I told him that someone’s got to take the rap for the Horizon scandal and that was the reason for his dismissal,” she said. “That was not the reason at all.

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“I dismissed him because there were serious concerns about his behaviour as chair, including those raised from other directors on the board.

“My department found significant governance issues, for example, with the recruitment of a new senior independence director to the Post Office board.”

But shortly after Ms Badenoch made her statement, a spokesperson for Mr Staunton released a fresh statement hitting back at the “astonishing” claims, saying it was the “first time the existence of such allegations have been mentioned”.

“Mr Staunton is not aware of any aspect of his conduct which could give rise to such allegations,” they added.

“They were certainly not raised by the secretary of state at any stage and certainly not during the conversation which led to Mr Staunton’s dismissal. Such behaviour would in any case be totally out of character.”

The heated exchange came after Mr Staunton, who was dismissed from his post last month, claimed in an interview with The Sunday Times that he was told to delay pay-outs to sub-postmasters ahead of the next general election due to concerns about costs.

Speaking in the Commons, Ms Badenoch said the claim was “completely false” and accused Mr Staunton of seeking “revenge” after he was sacked.

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Henry Staunton
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Henry Staunton

‘Pretty obvious to everyone’

Mr Staunton stood by his claims about stalled compensation this evening and earlier told Sky News it “pretty obvious what was really going on” following the government denials.

Mr Staunton said there was “no real movement” on the payouts until after the airing of the ITV drama Mr Bates Vs The Post Office earlier this year.

He added: “It was in the interests of the business, as well as being fair for the postmasters, that there was faster progress on exoneration and that compensation was more generous, but we didn’t see any real movement until after the Mr Bates programme.

“I think it is pretty obvious to everyone what was really going on.”

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But Ms Badenoch told MPs this afternoon there was “no evidence whatsoever that this is true”.

“For Henry Staunton to suggest otherwise, for whatever personal motives, is a disgrace and it risks damaging confidence in the compensation schemes that ministers and civil servants are working so hard to deliver,” she said.

“I would hope that most people reading the interview in yesterday’s Sunday Times would see it for what it was: a blatant attempt to seek revenge following dismissal.”

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Post Office scandal: New concerns

As the war of words between the pair ramped up, opposition parties demanded the government release all documents relating to Mr Staunton’s sacking to provide clarity on the allegations.

In his interview with The Sunday Times, Mr Staunton claimed that when he was sacked Ms Badenoch had told him “someone’s got to take the rap” for the Post Office scandal – and that he was offered no apology for learning about his dismissal from Sky News.

A readout of a call between the pair, seen by Sky News, shows that Ms Badenoch did apologise, but only for the call being at short notice.

‘Truly shocking’

As well as denying the claims, the business department also published a letter sent to Mr Staunton after his appointment which said one of his priorities should be to resolve historic litigation issues relating to the Horizon software.

However, Labour described the allegations were “truly shocking” and said there were “clear discrepancies” in the accounts of Mr Staunton’s short time as chairman.

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Post Office accused of cover-up

Mr Staunton became chairman of the Post Office in December 2022, but he was ousted last month as the government reeled from the backlash of its handling of the Horizon scandal.

This saw hundreds of sub-postmasters prosecuted because of discrepancies in the Horizon IT system between 1999 and 2015, in what has been called the biggest miscarriage of justice in UK history.

The airing of Mr Bates Vs The Post Office last month led to widespread outrage and promises from the government to introduce a new law to exonerate all victims and speed up the compensation process.

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Appearing opposite Ms Badenoch in the Commons, shadow business secretary Jonathan Reynolds said the revelations in The Sunday Times “could not be more serious”.

He singled out the claim that the Post Office was “instructed to deliberately go slow on compensation payments” to wrongly convicted sub-postmasters to save the government money ahead of an election.

He added it would be a “further outrageous insult to a scandal that has already rocked faith in the fairness of the British state”, if true.

Mr Staunton claimed he received the direction from a senior figure in Whitehall, but a spokesman for the government said on Sunday it “utterly” rejected the claim and said Mr Staunton was given “concrete objectives” to focus on reaching settlements.

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Paradigm urges jury clarity in Roman Storm’s Tornado Cash case

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Paradigm urges jury clarity in Roman Storm’s Tornado Cash case

Paradigm urges jury clarity in Roman Storm’s Tornado Cash case

Paradigm’s chief legal officer and general counsel said if Roman Storm is found guilty, it could slow future software development in the crypto and fintech industries.

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Flawed data used repeatedly to dismiss claims about ‘Asian grooming gangs’, Baroness Casey finds

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Flawed data used repeatedly to dismiss claims about 'Asian grooming gangs', Baroness Casey finds

Flawed data has been used repeatedly to dismiss claims about “Asian grooming gangs”, Baroness Louise Casey has said in a new report, as she called for a new national inquiry.

The government has accepted her recommendations to introduce compulsory collection of ethnicity and nationality data for all suspects in grooming cases, and for a review of police records to launch new criminal investigations into historical child sexual exploitation cases.

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Baroness Louise Casey answering question from the London Assembly police and crime committee at City Hall in east London. Pic: PA
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Baroness Louise Casey carried out the review. Pic: PA

The crossbench peer has produced an audit of sexual abuse carried out by grooming gangs in England and Wales, after she was asked by the prime minister to review new and existing data, including the ethnicity and demographics of these gangs.

In her report, she has warned authorities that children need to be seen “as children” and called for a tightening of the laws around the age of consent so that any penetrative sexual activity with a child under 16 is classified as rape. This is “to reduce uncertainty which adults can exploit to avoid or reduce the punishments that should be imposed for their crimes”, she added.

Baroness Casey said: “Despite the age of consent being 16, we have found too many examples of child sexual exploitation criminal cases being dropped or downgraded from rape to lesser charges where a 13 to 15-year-old had been ‘in love with’ or ‘had consented to’ sex with the perpetrator.”

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Grooming gangs victim speaks out

The peer has called for a nationwide probe into the exploitation of children by gangs of men.

She has not recommended another over-arching inquiry of the kind conducted by Professor Alexis Jay, and suggests the national probe should be time-limited.

The national inquiry will direct local investigations and hold institutions to account for past failures.

Home Secretary Yvette Cooper said the inquiry’s “purpose is to challenge what the audit describes as continued denial, resistance and legal wrangling among local agencies”.

On the issue of ethnicity, Baroness Casey said police data was not sufficient to draw conclusions as it had been “shied away from”, and is still not recorded for two-thirds of perpetrators.

‘Flawed data’

However, having examined local data in three police force areas, she found “disproportionate numbers of men from Asian ethnic backgrounds amongst suspects for group-based child sexual exploitation, as well as in the significant number of perpetrators of Asian ethnicity identified in local reviews and high-profile child sexual exploitation prosecutions across the country, to at least warrant further examination”.

She added: “Despite reviews, reports and inquiries raising questions about men from Asian or Pakistani backgrounds grooming and sexually exploiting young white girls, the system has consistently failed to fully acknowledge this or collect accurate data so it can be examined effectively.

“Instead, flawed data is used repeatedly to dismiss claims about ‘Asian grooming gangs’ as sensationalised, biased or untrue.

“This does a disservice to victims and indeed all law-abiding people in Asian communities and plays into the hands of those who want to exploit it to sow division.”

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From January: Grooming gangs: What happened?

The baroness hit out at the failure of policing data and intelligence for having multiple systems which do not communicate with each other.

She also criticised “an ambivalent attitude to adolescent girls both in society and in the culture of many organisations”, too often judging them as adults.

‘Deep-rooted failure’

Responding to Baroness Casey’s review, Ms Yvette Cooper told the House of Commons: “The findings of her audit are damning.

“At its heart, she identifies a deep-rooted failure to treat children as children. A continued failure to protect children and teenage girls from rape, from exploitation, and serious violence.

She added: “Baroness Casey found ‘blindness, ignorance, prejudice, defensiveness and even good but misdirected intentions’ all played a part in this collective failure.”

Ms Cooper said she will take immediate action on all 12 recommendations from the report, adding: “We cannot afford more wasted years repeating the same mistakes or shouting at each other across this House rather than delivering real change.”

Yvette Cooper makes a statement in the House of Commons, London, on Baroness Casey's findings on grooming gangs.
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Home Secretary Yvette Cooper responded to the report. Pic: PA

Conservative leader Kemi Badenoch said: “After months of pressure, the prime minister has finally accepted our calls for a full statutory national inquiry into the grooming gangs.

“We must remember that this is not a victory for politicians, especially the ones like the home secretary, who had to be dragged to this position, or the prime minister. This is a victory for the survivors who have been calling for this for years.”

Ms Badenoch added: “The prime minister’s handling of this scandal is an extraordinary failure of leadership. His judgement has once again been found wanting.

“Since he became prime minister, he and the home secretary dismissed calls for an inquiry because they did not want to cause a stir.

“They accused those of us demanding justice for the victims of this scandal as, and I quote, ‘jumping on a far right bandwagon’, a claim the prime minister’s official spokesman restated this weekend – shameful.”

The government has promised new laws to protect children and support victims so they “stop being blamed for the crimes committed against them”.

It is also launching new police operations and a new national inquiry to direct local investigations and hold institutions to account for past failures.

There will also be new ethnicity data and research “so we face up to the facts on exploitation and abuse,” the home secretary said.

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Crypto regulation needs more technologists and fewer suits

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Crypto regulation needs more technologists and fewer suits

Crypto regulation needs more technologists and fewer suits

The crypto community is missing the opportunity to reimagine rather than transpose rulemaking for financial services. More technologists must join the regulatory conversation.

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