Kemi Badenoch hits back at former Post Office boss in Horizon compensation row

Published

1 year ago

February 19, 2024

admin

Business Secretary Kemi Badenoch has hit out at the former Post Office chairman after he alleged he was told to “stall” spending on compensation for Horizon scandal victims ahead of the next general election.

Henry Staunton, who was ousted by the business secretary last month, used an interview with The Sunday Times to suggest that the alleged request from a senior Whitehall civil servant was linked to concerns about the cost of the payouts.

He also told the paper that Ms Badenoch told him that “someone’s got to take the rap” for the Horizon scandal and that he discovered his sacking following a phone call from Sky News.

The claims prompted an immediate and strongly worded denial from the government, with Ms Badenoch also using social media to accuse the former chairman of “disgraceful misrepresentation” of the reasons he was ousted.

Mr Staunton, who took up the role in December 2022 following nine years as chairman of WH Smith, claimed he was told “by a fairly senior person to stall on spend on compensation and on the replacement of Horizon” and to “limp into the election”.

He added: “It was not an anti-postmaster thing, it was just straight financials.

“I didn’t ask, because I said ‘I’m having no part of it – I’m not here to limp into the election, it’s not the right thing to do by postmasters’.

“The word ‘limp’ gives you a snapshot of where they were.”

Ms Badenoch, in a lengthy post on X, said the comments were a “disgraceful misrepresentation of my conversation with him and the reasons for his dismissal”.

She added: “Henry Staunton had a lack of grip getting justice for postmasters. The serious concerns over his conduct were the reasons I asked him to step down.

“That he chose to run to the media with made up anecdotes and a series of falsehoods, confirms I made the correct decision.”

She said her call with Mr Staunton “was with officials” who took a “complete record”.

“He has given an interview full of lies about our conversation during his dismissal.”

“The details will emerge soon enough as I won’t let the matter rest here, but will be discussing with [government] lawyers,” she said.

Ms Badenoch is expected to make a Commons statement about the matter on Monday.

The Post Office scandal has been pushed into the public eye following the airing of ITV drama, Mr Bates Vs The Post Office.

The series documented the long legal fight by hundreds of sub-postmasters and sub-postmistresses who were wrongfully blamed for financial discrepancies caused by the Horizon IT system between 1999 and 2015.

Many were financially ruined, some were jailed and others committed suicide after the errors made it seem like money was missing from their shops.

The government has announced plans to exonerate those whose convictions have still not been overturned and set aside £1bn for compensation.

But many campaigners, including Alan Bates who the ITV drama was centred on, have complained about unnecessary delays to victims in receiving the money.

Shadow business secretary Jonathan Reynolds said: “The Horizon scandal is widely accepted to be one of the worst miscarriages of justice in British history.

“Under no circumstances should compensation to victims be delayed and to do so for party political purposes would be a further insult to sub-postmasters.

“The Labour Party has called for all sub-postmasters to be exonerated and compensation paid swiftly so that victims can begin to draw this awful chapter to a close.”

Liberal Democrat leader Ed Davey said the claims were “deeply disturbing”.

He said that “ministers must come to parliament and explain exactly what has happened at the earliest opportunity”.

Ms Badenoch’s denial came after Home Office minister Michael Tomlinson told broadcasters he didn’t “accept or recognise” Mr Staunton’s claims.

Speaking on Sunday morning, he initially told Sky News he hadn’t read the story so he couldn’t comment.

But later he told Times Radio: “I don’t accept or recognise that.

“We are encouraging postmasters to come forward. We have brought legislation through the House of Commons which will enable those payments to be made, and that is something that we are encouraging rather than anything.”

A government spokesperson said: “We utterly refute these allegations.

“The government has sped up compensation to victims and consistently encouraged postmasters to come forward with their claims.

“To suggest any actions or conversations happened to the contrary is incorrect. In fact, upon appointment, Mr Staunton was set concrete objectives, in writing, to focus on reaching settlements with claimants – clear evidence of the government’s intent.

“The secretary of state asked Henry Staunton to step down as chairman of the Post Office because a change in leadership was needed.”

Business

Trump fires tariff threats at more nations as EU ‘ready for all scenarios’

Published

6 hours ago

July 9, 2025

admin

Trump fires tariff threats at more nations as EU 'ready for all scenarios'

Donald Trump has revealed a list of more nations set to face delayed ‘liberation day’ tariffs from 1 August.

He has threatened tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova and 20% on the Philippines. Sri Lanka was later told it faced a 30% duty.

Letters setting out the planned rates – and warning against retaliation – are being sent to the leaders of each country.

Money latest: HMRC issues 600,000 fines to people who owe no tax

They were the latest to be informed of the president‘s plans after Japan and South Korea were among the first 14 nations to be told of the rates they must pay on their general exports to the US from 1 August.

The duties are on top of sectoral tariffs, covering areas such as steel and cars, already in place.

Mr Trump further warned, on Tuesday, that a 50% tariff rate on all copper imports to the US was looming.

He has also threatened a 200% rate on pharmaceuticals and is also expected to take aim at all imports of semiconductors too.

The European Union, America’s largest trading partner in combined trade, services and investment, is expected to get a letter within the next 48 hours unless further progress is made in continuing talks.

The bloc, which Mr Trump has previously claimed was created to “screw” the US, has been in negotiations with US officials for weeks and working to agree a UK-style truce by the end of the month.

The EU has retaliatory tariffs ready to deploy from 14 July but it is widely expected to delay them until such time that any heightened US duties are imposed.

It remains hopeful of a deal in the coming days but European Commission president Ursula von der Leyen told the European Parliament: “We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios.”

While the UK’s so-called deal with Mr Trump is now in force, it remains unclear whether steelmakers will have to pay a 50% tariff rate, deployed by the US against the rest of the world, as some final details on an exemption are yet to be worked out.

The rate is currently 25%.

Business

Nvidia wins race to become first $4trn listed company

Published

9 hours ago

July 9, 2025

admin

Nvidia wins race to become first trn listed company

Nvidia has become the first stock market-listed company to achieve a value of $4trn.

Its share price rose by more than 2% at the market open on Wall Street to reach the milestone moment.

It was achieved just over a year since Nvidia overcame the $3trn barrier and overtook Apple, in market cap terms, in the process.

The AI-focused chipmaker has been the darling of Wall Street for many years.

Money latest: HMRC issues 600,000 fines to people who owe no tax

The value of its shares has risen by 409,825% since its market debut in 1999.

Its status has been cemented thanks to the rush for AI technology – suffering several wobbles along the way – but nothing significant when you refer to the percentage rise of the past 26 years.

The most recent pressures have come from the emergence of the low-cost chatbot DeepSeek and concerns for global AI demand as a result of Donald Trump’s trade war hitting growth.

Financial markets have been taking a more risk-on approach to the trade war since the delays to “liberation day” tariffs in April.

It’s explained by a market trend that’s become known as the TACO trade: Trump always chickens out.

It has helped US stock markets post new record highs in recent days.

The wave of optimism is down to the fact that the president is yet to follow through with the worst of his threatened tariffs on trading partners.

Corporations are also yet to report big hits to their earnings – a fact that is also propping up demand for shares.

If Mr Trump does go all-out in his trade war, as he has now threatened from 1 August, then that $4trn market value for Nvidia – and wider stock markets – could be short-lived, at least in the short term.

But market analysts believe Nvidia’s value has further to go.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said of its meteoric rise: “Once known for powering video games, NVIDIA has transformed into a foundational player in AI infrastructure.

“Its high-performance chips now drive everything from natural language processing to robotics, making them essential to training and deploying advanced AI models.

“Beyond hardware, its full-stack ecosystem – including software platforms and developer tools – helps companies scale AI quickly and efficiently. This end-to-end approach has positioned Nvidia as a cornerstone in a market where speed, scalability, and efficiency are critical.”

He added: “The key question is where it goes from here, and while it might seem strange for a company that’s just passed the $4trn mark, Nvidia still looks attractive.

“Growth is expected to slow, and it’s likely to lose some market share as competition and custom solutions ramp up. But trading at a relatively modest 32 times expected earnings, and over 50% top-line growth forecast this year, there’s still an attractive opportunity ahead.

“For investors, it remains a compelling way to gain exposure to the AI boom – not just as a participant, but as one of its architects.”

Business

Greater risk to UK economy following Trump’s tariffs, says Bank of England

Published

9 hours ago

July 9, 2025

admin

Greater risk to UK economy following Trump's tariffs, says Bank of England

The future of the UK economy is weaker and more uncertain due to President Trump’s tariffs and conflict in the Middle East, the Bank of England has said.

“The outlook for UK growth over the coming year is a little weaker and more uncertain,” the central bank said in its biannual health check of the UK’s financial system.

Economic and financial risks have increased since the last report was published in November, as global unpredictability continued after the announcement of country-specific tariffs on 2 April, the Bank’s Financial Stability Report said.

Money blog: €1 home goes on sale – but there are T&Cs

These risks and uncertainty, as well as geopolitical tensions, like the wars in Ukraine and the Middle East, are “particularly relevant” to UK financial stability as an open economy with a large financial sector, it said.

Pressures on government borrowing costs are “still elevated” amid significant doubts over the global economic outlook.

Had a 90-day pause on tariffs not been announced, conditions could have worsened, the report added.

The chance of prices rising overall has also grown as tensions between Iran and Israel and the US threaten to push up energy prices.

Possible higher inflation in turn raises the prospect of more expensive borrowing from higher interest rates to bring down those price rises. This compounds the pressure on state borrowing costs.

Mortgages

Borrowing costs for about 40% of mortgage holders are set to become costlier over the next three years as households refix to more expensive deals, affecting 3.6 million households, the Bank said.

Many homes have not refixed their mortgage since interest rates began to rise in 2021, meaning the full impact of higher rates has yet to filter through.

Those looking to get on the property ladder got a boost as the Bank said lenders could issue more loans deemed to be risky, meaning people could be able to borrow more.

Financial institutions can now have 15% of their new mortgages deemed risky every year, up from the current 9.7%.

Riskier mortgages are those with a loan value above 4.5 times the borrower’s income.

Be ‘prepared for shocks’

Despite the global and domestic economy concerns, the outlook for UK household and business resilience remained “strong”, the Bank said.

Investors, however, were warned that there could be “sharp falls in risky asset prices”, which include shares and currencies.

If there are any vulnerabilities in non-bank lenders, it “could amplify such moves, potentially affecting the availability and cost of credit in the UK”.

“It is important that in their risk management, market participants [people involved in investing] are prepared for such shocks.”

The steep market reaction following the tariff announcements in April “highlights that the interconnectedness of global financial markets can mean stress from one market can move quickly to others,” the report said.

Overall, though, “household and corporate borrowers remain resilient”, the Bank concluded.