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The Post Office should be removed from involvement in the Horizon scandal compensation processes, a committee of MPs has demanded while piling further pressure on its chief executive.

The Business and Trade Committee published recommendations for delivering faster and fuller payments to the hundreds of victims, describing efforts to deliver redress to date as an “abject failure”.

Chairman Liam Byrne said it was a “national disgrace” that “only £1 in £5 of the budget for compensation has been issued” to sub-postmasters to date and legally-binding timetables were needed to restore urgency and confidence.

The committee’s report stated the Post Office was “not fit for purpose to administer any of the schemes required to make amends”.

It blamed both victims’ lack of confidence in the firm and its “chaotic” leadership.

The MPs’ determinations were partly linked to a separate war of words playing out over conduct at the Post Office.

The focus on the sub-postmaster victims shifted last week when former Post Office chairman Henry Staunton, sacked by the business secretary in January, told the committee that an investigation believed to have focused on his own conduct was actually concentrated on chief executive Nick Read.

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A letter by Mr Staunton to the committee, and released by the MPs, alleged that Mr Read was facing claims of bullying and sexism by a senior member of staff.

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Staunton says investigation was made into Nick Read

He also cast doubts again on Mr Read’s assertion, in front of the committee, that he had not threatened to resign.

Mr Staunton claimed Mr Read was particularly unhappy over his salary and dismissed conduct questions against himself as “flimsy”.

The committee is expected to consider whether to publish a document, pledged by the Post Office, that is understood to include the details of the allegations against Mr Read.

In its findings against the Post Office on Thursday, the committee expressed a lack of confidence in his leadership.

“Mr Read has supplied misleading evidence to the committee on at least two counts, relating to the Post Office’s use of,
first, non-disclosure agreements and, secondly, public relations firms.

“The Post Office is not fit for purpose to administer any of the schemes of redress required to make amends for one of the biggest miscarriages of justice in British history”, it noted.

It called on the government to create a “properly resourced” independent intermediary that would offer legal and forensic accounting services to victims to ensure victims are equipped with all the facts and figures they need to secure fair redress and compensation.

Other measures recommended by the report included removing a cap on legal expenses for sub-postmasters and a standardised set of tariffs to help victims to better estimate what they are entitled to.

The findings largely follow the issues raised with the committee by Alan Bates, the former sub-postmaster whose experience formed the basis of the TV drama that brought their plight firmly back to public attention.

Between 1999 and 2015, more than 700 were prosecuted after faulty accounting software provided by Fujitsu made it seem like money was missing from their branches.

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Labour MPs fear wipe out at next local election – as chancellor’s career is ‘toast’

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Labour MPs fear wipe out at next local election - as chancellor's career is 'toast'

Many Labour MPs have been left shellshocked after the chaotic political self-sabotage of the past week.

Bafflement, anger, disappointment, and sheer frustration are all on relatively open display at the circular firing squad which seems to have surrounded the prime minister.

The botched effort to flush out backroom plotters and force Wes Streeting to declare his loyalty ahead of the budget has instead led even previously loyal Starmerites to predict the PM could be forced out of office before the local elections in May.

“We have so many councillors coming up for election across the country,” one says, “and at the moment it looks like they’re going to be wiped out. That’s our base – we just can’t afford to lose them. I like Keir [Starmer] but there’s only a limited window left to turn things around. There’s a real question of urgency.”

Another criticised a “boys club” at No 10 who they claimed have “undermined” the prime minister and “forgotten they’re meant to be serving the British people.”

There’s clearly widespread muttering about what to do next – and even a degree of enviousness at the lack of a regicidal 1922 committee mechanism, as enjoyed by the Tories.

“Leadership speculation is destabilising,” one said. “But there’s really no obvious strategy. Andy Burnham isn’t even an MP. You’d need a stalking horse candidate and we don’t have one. There’s no 1922. It’s very messy.”

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Starmer’s faithfuls are ‘losing faith’

Others are gunning for the chancellor after months of careful pitch-rolling for manifesto-breaching tax rises in the budget were ripped up overnight.

“Her career is toast,” one told me. “Rachel has just lost all credibility. She screwed up on the manifesto. She screwed up on the last two fiscal events, costing the party huge amounts of support and leaving the economy stagnating.

“Having now walked everyone up the mountain of tax rises and made us vote to support them on the opposition day debate two days ago, she’s now worried her job is at risk and has bottled it.

“Talk to any major business or investor and they are holding off investing in the UK until it is clear what the UK’s tax policy is going to be, putting us in a situation where the chancellor is going to have to go through this all over again in six months – which just means no real economic growth for another six months.”

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Why is the economy flatlining?

Read more:
Starmer and Reeves ditch plans to raise income tax
Former chancellor Osborne is shock contender to head HSBC

After less than 18 months in office, the government is stuck in a political morass largely of its own making.

Treasury sources have belatedly argued that the chancellor’s pre-budget change of heart on income tax is down to better-than-expected economic forecasts from the Office for Budget Responsibility.

That should be a cause of celebration. The question is whether she and the PM are now too damaged to make that case to the country – and rescue their benighted prospects.

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Man charged with murder of 17-year-old girl

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Man charged with murder of 17-year-old girl

A teenager has been charged with murder and attempted murder following the death of a 17-year-old girl, police have said.

Armed police were called to Cefn Fforest in Blackwood, Wales, at around 7.15am on Thursday after being told two people were seriously injured.

Lainie Williams was pronounced dead at the scene, while a second, a 38-year-old woman, who also sustained injuries, has been discharged from hospital.

Gwent Police said 18-year-old Cameron Cheng, a British national from Newbridge, Caerphilly, has also been charged with possession of a bladed article in a public place.

He is remanded to appear before Newport Magistrates’ Court on 17 November.

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Ex-chancellor is shock contender to head HSBC

Assistant Chief Constable Vicki Townsend said: “We understand that there has been a great deal of interest in this investigation.

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“It is vital that people consider how their language, especially comments made online, could affect our ability to bring anyone found to have committed a criminal offence to justice.

“Even though we’ve reached this significant development in the investigation, our enquiries continue so it is likely that residents will continue to see officers in the area.

“So if anyone has any information, please speak to our officers or contact us in the usual way.”

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Home secretary vows to end UK’s ‘golden ticket’ for asylum seekers – as Denmark-based reforms to be unveiled

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Home secretary vows to end UK's 'golden ticket' for asylum seekers - as Denmark-based reforms to be unveiled

The home secretary is set to unveil sweeping measures to tackle illegal migration, vowing to end the UK’s ‘golden ticket’ for asylum seekers.

People granted asylum in the UK will only be allowed to stay in the country temporarily, in the changes expected to be unveiled on Monday by Shabana Mahmood.

Modelled on the Danish system, the aim is to make the UK less attractive for illegal immigrants and make it easier to deport them.

Planned changes mean that refugee status will become temporary and subject to regular review, with refugees removed as soon as their home countries are deemed safe.

The Home Office said the “golden ticket” deal has seen asylum claims surge in the UK, drawing people across Europe, through safe countries, onto dangerous small boats.

Under current UK rules, those granted refugee status have it for five years and can then apply for indefinite leave to remain and get on a route to citizenship.

As part of the changes, the statutory legal duty to provide asylum seeker support, including housing and weekly allowances, will be revoked.

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The government will seek to remove asylum support, including accommodation and handouts, to those who have a right to work and who can support themselves but choose not to or those who break UK law.

Home Secretary Shabana Mahmood. Pic: PA
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Home Secretary Shabana Mahmood. Pic: PA

‘Last chance for a decent politics’

A government source said Ms Mahmood believes her reforms are about “more than the electoral fortunes of her party”.

“This is the last chance for a decent, mainstream politics. If these moderate forces fail, she believes, something darker will follow,” they said.

“But this demands that moderates are willing to do things that will seem immoderate to some. She has reminded those who are reluctant to embrace her ambition for bold reform, with an ultimatum: ‘if you don’t like this, you won’t like what follows me.'”

Ms Mahmood said they were the most sweeping changes to the asylum system “in a generation”, as she vowed the government will “restore order and control to our borders”.

The home secretary also told The Sunday Times that “I can see – and I know my colleagues can – that illegal migration is tearing our country apart”.

Read more:
What Sky News witnessed after tip-off about migrant crossings
Could Danish model save Labour’s bacon?

System being ‘gamed’

The source said Ms Mahmood believes the system is being “gamed by those travelling on boats or abusing legal visas”.

Some 39,075 people have arrived in the UK after making the journey across the Channel so far this year, according to the latest Home Office figures.

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The gangs smuggling people to the UK

That is an increase of 19% on the same point in 2024 and up 43% on 2023, but remains 5% lower than at the equivalent point in 2022, which remains the peak year for crossings.

What happened in Denmark?

The UK government points to Denmark remaining a signatory of the European Convention on Human Rights, while also cutting the number of asylum applications to the lowest number in 40 years and successfully removing 95% of rejected asylum seekers.

What are Denmark’s migration rules?

Denmark has adopted increasingly restrictive rules in order to deal with migration over the last few years.

In Denmark, most asylum or refugee statuses are temporary. Residency can be revoked once a country is deemed safe.

In order to achieve settlement, asylum seekers are required to be in full-time employment, and the length of time it takes to acquire those rights has been extended.

Denmark also has tougher rules on family reunification – both the sponsor and their partner are required to be at least 24 years old, which the Danish government says is designed to prevent forced marriages.

The sponsor must also not have claimed welfare for three years and must provide a financial guarantee for their partner. Both must also pass a Danish language test.

In 2018, Denmark introduced what it called a ghetto package, a controversial plan to radically alter some residential areas, including by demolishing social housing. Areas with over 1,000 residents were defined as ghettos if more than 50% were “immigrants and their descendants from non-Western countries”.

In 2021, the left of centre government passed a law that allowed refugees arriving on Danish soil to be moved to asylum centres in a partner country – and subsequently agreed with Rwanda to explore setting up a program, although that has been put on hold.

Shadow home secretary Chris Philp said the Labour government has “lost control” of the UK’s borders” with illegal channel crossings “surging to over 62,000 since the election”.

He said some of the new measures were welcome but “they stop well short of what is really required and some are just yet more gimmicks – like the previous ‘smash the gangs’ gimmick”.

Mr Philp added: “Only the Conservative borders plan will end illegal immigration – by leaving the ECHR, banning asylum claims for illegal immigrants, deporting all illegal arrivals within a week and establishing a Removals Force to deport 150,000 illegal immigrants each year.”

And Enver Solomon, chief executive of Refugee Council, said: “These sweeping changes will not deter people from making dangerous crossings, but they will unfairly prevent men, women and children from putting down roots and integrating into British life.”

Ms Mahmood will be appearing on Sunday Morning with Trevor Phillips from 8.30am on Sunday.

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