Sub-postmaster wrongly sent to prison while pregnant rejects apology from ex-Post Office boss David Smith
A victim of the Post Office scandal who was wrongly jailed while pregnant has rejected an apology from a former Post Office executive – who celebrated her conviction as “brilliant news” at the time.
Former managing director David Smith made the apology to the Post Office Horizon IT inquiry, saying: “I would absolutely never think that it was ‘brilliant news’ for a pregnant woman to go to prison and I am hugely apologetic that my email can be read as such.”
That victim, Seema Misra – who was sentenced to 15 months in jail and served four months while pregnant – said it wasn’t good enough.
“They’re apologising now, but they missed so many chances before,” Ms Misra told Sky News.
“We had my conviction overturned, nobody came at that time to apologise. And now they just suddenly realised that when they have to appear in a public inquiry, they have to apologise.”
The inquiry is investigating who knew what and when about the faulty accounting software that ruined lives, resulted in huge debts, ill-health, ruined reputations, and led to the conviction of hundreds of innocent sub-postmasters for theft and false accounting.
The scandal received renewed attention after an ITV drama, Mr Bates vs the Post Office, aired early this year and brought to life how Horizon software, developed by Fujitsu, incorrectly generated financial shortfalls at Post Office branches throughout the UK.
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Post Office hero Bates had seemingly been preparing for this day
‘Brilliant news’
In 2010 Mr Smith emailed Post Office prosecutors, congratulating them on a job well done in jailing Ms Misra for theft.
“Brilliant news. Well done. Please pass on my thanks to the team,” he said.
The message was intended to celebrate proving Horizon was robust, Mr Smith said, rather than someone going to prison.
“Regardless of the result, I would have thanked the team for their work on the case.”
“However, seeing this email in the light of what I know now, I understand the anger and the upset that it will have caused and sincerely apologise for that,” Mr Smith’s evidence statement to the inquiry said.
“It is evident that my email would have caused Seema Misra, and her family, substantial distress to read and I would like to apologise for that.”
Ms Misra’s conviction was overturned by the Court of Appeal in 2021 but the memories of her time in prison still give her nightmares, she said.
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Sub-postmistress wrongly jailed while pregnant
A ‘test case’ that added confidence in Horizon
Mr Smith told the inquiry Ms Misra had been used as a “test case”.
The success of the case led to more confidence in Horizon, he said.
He said: “I do know that from this point forward, we didn’t really think about whether we should have an inquiry [into Horizon] again while I was at the Post Office and certainly if you looked at board minutes from the month after and the month after that which had been shared with me, we’re not talking about Horizon at all.”
In response, Ms Misra told Sky News: “How can they do a test on a human being?”
“I’m a living creature,” she added.
“I heard that my case has been used as a test case before. But hearing it again and again, it’s just annoying. It makes me more and more angry, to be honest.”
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A wrongly convicted pregnant sub-postmaster has told Sky News she
Flora Page, a barrister representing some sub-postmasters, said the trial of Ms Misra was being “actively used by Post Office as part of [its] campaign to claim that Horizon was robust”.
This was denied by Mr Smith.
Ms Page questioned Mr Smith at the inquiry about what the Post Office knew before putting Ms Misra behind bars and said prosecutors were alerted to bugs in Horizon on a Friday.
On the following Monday Ms Misra’s trial began, the inquiry heard.
Documentation submitted to the inquiry showed a Fujitsu witness in Ms Misra’s case was present at a pre-trial meeting where bugs in Horizon were being discussed, Ms Page said.
The meeting “made it perfectly plain that Fujitsu had the power to remotely alter branch accounts”, as the option was put forward as a way to resolve the receipts and payments mismatch bug in Horizon, she added.
At the time, Mr Smith said, he was unaware of the meeting and documents.
Former managing director of Post Office Ltd David Smith, arrives to give evidence to the Post Office Horizon IT inquiry.
Pic: PA
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‘Inherent risks’ in Post Office prosecuting
The Post Office was allowed to investigate and bring prosecutions itself and did not require Crown Prosecution Service (CPS) involvement.
Reflecting on how prosecutions were carried out, Mr Smith told the inquiry there are “risks” within the system.
In-house prosecution “can lead you to a position where you might not think as independently as you should do about the quality of the information”, he said.
None of these issues occurred to Mr Smith during his tenure.
He said: “I cannot recall thinking that any risk or compliance issues arose from [the Post Office] undertaking this role, but with the benefit of hindsight, and in light of the wrongful prosecutions, I can see the inherent risks in the prosecutions taking place ‘in house’ and not by an independent enforcement authority.”
At the time the organisation was too focused on other issues, such as the Post Office separating from Royal Mail, the new coalition government, and the need to refinance the business, he said.
The company board was “pre-occupied” with investment from the government, his witness statement said.
“Therefore, although we were aware of the case, at board level we were not heavily focused on it as our attention was on keeping the business running,” he added.
It was down to “institutional bias” that led executives not to interrogate what was being said by sub-postmasters and the public about Horizon, he added.
Retail sales rose a surprising amount in July, as good weather and the Women’s Euros led people to part with their cash, official figures show.
The amount of spending rose 0.6% in July, according to figures from the Office for National Statistics (ONS), far above the 0.2% rise anticipated by economists polled by Reuters.
In particular, clothing and footwear stores, as well as online shopping, experienced strong growth.
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When looked at on a three-month basis, the numbers are weaker, with a 0.6% fall in sales up to July due in part to downward revisions in June.
Spending has declined since March, when supermarkets, sports shops, and household goods saw strong sales at the beginning of the year as warm and sunny weather pushed summer purchases earlier. Though compared to a year ago, sales are up 1.1%.
Fans gather during a Homecoming Victory Parade in London after England’s win in the final of the Women’s Euros. Pic: PA
Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.
Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.
A problem with the figures
These figures were originally due to be published in August but were delayed by two weeks so the ONS could carry out “quality assurance” checks.
Following the checks, the statistics body found a “problem”, which meant it had to correct seasonally adjusted figures.
It hasn’t been the only question mark over the reliability of ONS figures.
In March, UK trade figures were delayed due to errors from 2023, and the office continues to advise caution in interpreting changes in the monthly unemployment rate due to concerns over data reliability.
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UK growth slowed amid rising costs in June.
As a result of the latest error, previously monthly figures overstated the monthly volatility in the first five months of 2025, the ONS’s director general of economic statistics, James Benford, said.
Mr Benford apologised for the release delay and for the errors.
What could it mean?
It could mean retrospective changes to the UK economic growth rate, according to Rob Wood, the chief UK economist at Pantheon Macroeconomics.
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More than a quarter of cars sold in August were electric vehicles
April’s economic growth rate will be revised down, and May’s will be moved up as a result, Mr Wood said.
There will be no impact on the Bank of England’s interest rate decision, he added.
A greater proportion of electric cars were sold last month than at any point this year, industry data shows.
More than a quarter (26.5%) of cars sold in August were electric vehicles (EVs), according to figures from motor lobby group the Society for Motor Manufacturers and Traders (SMMT).
It’s the largest amount of sales since December 2024 and comes as the government introduced financial incentives to help drivers make the move to zero tailpipe emission cars.
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The full suite of grants were not available during the month, however, with a further 35 models eligible for £1,500 off early in September.
Throughout August more models became eligible for price reductions, meaning more consumers could be tempted to purchase an EV in September.
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New EV grants to drive sales came into effect in July
The increased percentage of EV sales came despite an overall 2% drop in buying, compared to a year earlier, in what is typically the quietest month for car purchases.
What are the rules?
The numbers suggest the car industry could be on course to meet the government’s zero-emission vehicle (ZEV) mandate, the thinktank Energy & Climate Intelligence Unit (ECIU) has said.
It stipulates that new petrol and diesel cars may not be sold from 2030.
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Amid pressure from industry, the government altered the mandate in April to allow for hybrid vehicles, which are powered by both fuel and a battery, to be sold until 2035.
Sales of new petrol and diesel vans are also permitted until 2035.
Until then, 28% of cars sold must be electric this year, with the share rising to 33% in 2026, 38% in 2027 and 66% in 2029, the final year before the new combustion engine ban.
Manufacturers face fines for not meeting the targets.
Last year, the objective of making 22% of all car sales purely EVs was surpassed, with EVs comprising 24.3% of the total sold in 2024.
Why?
The increased portion of EV sales can be attributed to increased model choice and discounting, on top of the government reductions, the SMMT said.
Savings from running an electric car are also enticing motorists, the ECIU said. “Demand for used EVs is already surging because they can offer £1,600 a year in savings in owning and running costs.”
“This matters for regular families as the pipeline of second-hand EVs is dependent on new car sales, which hit the used market after around three to four years.
Businesses have cut jobs at the fastest pace in almost four years, according to a closely-watched Bank of England survey which also paints a worrying picture for employment and wage growth ahead.
Its Decision Maker Panel (DMP) data, taken from chief financial officers across 2,000 companies, showed employment levels over the three months to August were 0.5% lower than in the same period a year earlier.
It amounted to the worst decline since autumn 2021 as firms grappled with the implementation of budget measures in the spring that raised their national insurance contributions and minimum wage levels, along with business rates for many.
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The start of April also witnessed the escalation in Donald Trump’s global trade war which further damaged sentiment, especially among exporters to the United States.
The survey showed no improvement in hiring intentions in the tough economy, with companies expecting to reduce employment levels by 0.5% over the coming year.
That was the weakest outlook projection since October 2020.
At the same time, the panel also showed that participants planned to raise their own prices by 3.8% over the next 12 months. That is in line with the current rate of inflation.
The news on wages was no better as the central forecast was for an average rise of 3.6% – down from the 4.6% seen over the past 12 months.
If borne out, it would mean private sector wages rising below the rate of inflation – erasing household and business spending power.
The Bank of England has been relying on data such as the DMP amid a lack of confidence in official employment figures produced by the Office for National Statistics due to low response rates.
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Bank governor Andrew Bailey told a committee of MPs on Wednesday that he was now less sure over the pace of interest rate cuts ahead owing to stubborn inflation in the economy.
The consumer prices index measure is expected to peak at 4% next month – double the Bank’s target rate – from the current level.
Higher interest rates only add to company costs and make them less likely to borrow for investment purposes.
At the same time, employers are fearful that the coming budget, set for late November, may contain no relief.
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Why aren’t we hearing about the budget ‘black hole’?
Sky News revealed on Thursday how the head of the banking sector’s main lobby group had written to the chancellor to warn that any additional levy on bank profits, as suggested by a think-tank last week, would only damage her search for growth.
Rachel Reeves is believed to be facing a black hole in the public finances amounting to £20bn-£40bn.
Tax rises are believed to be inevitable, given her commitment to fiscal rules concerning borrowing by the end of the parliament.
Heightened costs associated with servicing such debts following recent bond sell-offs across Western economies have made more borrowing even less palatable.
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Why did UK debt just get more expensive?
Ms Reeves is expected to raise some form of wealth tax, while other speculation has included a shake-up of council tax.
She has consistently committed not to target working people but the Bank of England data, and official ONS figures, would suggest that businesses have responded to 2024 budget measures by cutting jobs since April, with hospitality and retail among the worst hit.
Commenting on the data, Rob Wood, chief UK economist at Pantheon Macroeconomics, said: “The DMP survey shows stubborn wage and price pressures despite falling employment, continuing to suggest that structural economic changes and supply weakness are keeping inflation high.
“The MPC [monetary policy committee of the Bank of England] will have to be cautious, so we remain comfortable assuming no more rate cuts this year.”
“That said, the increasing signs of labour market weakness suggest dovish risks,” he concluded.
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