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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’.

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“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.

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Compensation fight ‘like a trial’

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.”

Read more from Sky News:
£1bn set aside to fund compensation for victims
Former postmaster says compensation offer is ‘insulting’

Henry Staunton
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Henry Staunton

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.”

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Jaguar Land Rover cyberattack pushes overall UK car production down more than a quarter

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 Jaguar Land Rover cyberattack pushes overall UK car production down more than a quarter

UK car production fell by more than a quarter (27.1%) last month as a cyberattack at Jaguar Land Rover halted manufacturing at the plant, industry figures show.

The total number of vehicles coming off assembly lines – including cars and vans – fell an even sharper 35.9%, according to September data from the Society of Motor Manufacturers and Traders (SMMT).

“Largely responsible” for the drop was the five-week pause in production at Jaguar Land Rover (JLR) due to a malicious cyber attack, as other car makers reported growth.

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JLR’s assembly lines in the West Midlands and Halewood on Merseyside were paused from late August to early October as a result.

During this time, not a single vehicle was made. Production has since restarted, but the attack is believed to have been the “most financially damaging” in UK history at an estimated cost of £1.9bn, according to the security body the Cyber Monitoring Centre.

It was the lowest number of cars made in any September in the UK since 1952, including during the COVID-19 lockdown.

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Are we in a cyber attack ‘epidemic’?

Despite the restart, the sector remains “under immense pressure”, the SMMT’s chief executive Mike Hawes said.

The phased restart of operations led to a small boost in manufacturing output this month, according to a closely watched survey.

Of the cars that were made, nearly half (47.8%) were battery electric, plug-in hybrid or hybrid.

The vast majority, 76% of the total vehicles output, were made for export.

The top destinations are the European Union, US, Turkey, Japan and South Korea.

JLR was just the latest business to be the subject of a cyberattack.

Harrods, the Co-Op, and Marks and Spencer, are among the companies that have struggled in the past year with such attacks.

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English Championship side Sheffield Wednesday file for administration

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English Championship side Sheffield Wednesday file for administration

Championship club Sheffield Wednesday have filed for administration, according to a court filing, which will result in the already struggling side being hit with a 12-point deduction.

The South Yorkshire club currently sit bottom of the Championship, the second tier of English football, with just six points from 11 games.

Known as The Owls, Wednesday are one of the oldest surviving clubs in world football, with more than 150 years of history.

Court records confirm the club have filed for administration. A notice was filed at a specialist court at 10.01am.

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Sky’s Rob Harris reports on the news that Sheffield Wednesday have filed for administration

What has happened?

The Owls, who host Oxford United on Saturday, have been in turmoil for a long time.

On 3 June, owner Dejphon Chansiri, a Thai canned fish magnate who took over the club in 2015, was charged with breaching EFL regulations regarding payment obligations.

Sheffield Wednesday fans protest the ownership at a game away to Leeds United in January. Pic: Reuters
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Sheffield Wednesday fans protest the ownership at a game away to Leeds United in January. Pic: Reuters

Weeks later, Mr Chansiri said he was willing to sell the club in a statement on their official website.

Sheffield Wednesday's troubles have sparked furious protests from fans. Pic: PA
Image:
Sheffield Wednesday’s troubles have sparked furious protests from fans. Pic: PA

Their crisis deepened just days later when another embargo was imposed on the club relating to payments owed to HMRC, before players and staff were not paid on time on 30 June.

In the months that followed, forwards Josh Windass and Michael Smith left the club by mutual consent. Manager Danny Rohl, now at Rangers, also left by mutual consent.

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Frustrated Sheffield Wednesday supporters have targeted their embattled club’s owner in a highly-visible protest during their opening match of the season.

The Owls were forced to close the 9,255-capacity North Stand at Hillsborough after a Prohibition Notice was issued by Sheffield City Council.

‘Current uncertainty’

On 6 August, the EFL released a statement, saying: “We are clear that the current owner needs either to fund the club to meet its obligations or make good on his commitment to sell to a well-funded party, for fair market value – ending the current uncertainty and impasse.”

On 13 August, the Prohibition Notice was lifted, but a month later, news emerged of a winding-up petition over £1m owed to HMRC.

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Last season, Wednesday finished 12th. They had already been placed under registration embargoes in the last two seasons after being hit by a six-point deduction during the 2020/21 campaign, for breaching profit and sustainability rules.

With a 12-point deduction, the Owls would be 15 points away from safety in the Championship.

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Retail sales the highest in three years in a surprise to economists

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Retail sales the highest in three years in a surprise to economists

Retail sales are at the highest level in more than three years, in the latest measure of the UK economy to confound economists.

The amounts bought in shops rose 0.5% in September, far above the 0.2% contraction anticipated by economists polled by Reuters.

It was the fourth monthly rise in a row and brought volumes to their highest level since July 2022.

Money latest: Restaurant sends bitter message to customers

Doing well were computer and telecommunications retailers as the iPhone 17 launched in the month, while online jewellers reported strong demand for gold despite the price hovering around record highs.

Gold has been in demand, and in recent days reached a record high, as some investors moved money out of the US dollar and government bonds amid the ongoing government shutdown.

It came despite a rainy month – which typically keeps shoppers at home – and a five-day tube strike in London.

The impact of the rain could be seen, however, in the boost to online spending, which rose to one of the highest levels since the end of the pandemic.

A fall was recorded in food shop sales from August to September, signalling a response to high food price inflation.

A good week for the economy?

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.

Earlier this week, another key economic measure came in better than expected.

Inflation remained at 3.8% rather than rising to the widely expected 4% – double the target rate set by the interest rate-setters at the Bank of England.

Read more from Sky News:
Spotify hikes UK subscription prices
Post Office compensation ‘worse than original injustice’

Consumers were feeling better about their finances, a closely watched measure of consumer confidence showed on Friday.

Buying sentiment is up from last month, according to market research company GFK, as intentions to buy big-ticket items like electrical goods and furniture rose.

Combined, it suggests people are not feeling too gloomy in the run-up to the November budget.

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