Henry Staunton: Former Post Office chairman investigated over bullying before dismissal, Kemi Badenoch claims

Published

1 year ago

February 19, 2024

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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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‘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.”

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.”

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.

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.

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.

Business

US-UK trade deal ‘done’, says Trump as he meets Starmer at G7

Published

2 hours ago

June 17, 2025

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US-UK trade deal 'done', says Trump as he meets Starmer at G7

The UK-US trade deal has been signed and is “done”, US President Donald Trump has said as he met Sir Keir Starmer at the G7 summit.

The US president told reporters: “We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”

As Mr Trump and his British counterpart exited a mountain lodge in the Canadian Rockies where the summit is being held, the US president held up a physical copy of the trade agreement to show reporters.

Several leaves of paper fell from the binding, and Mr Starmer quickly bent down to pick them up, saying: “A very important document.”

Sir Keir said the document “implements” the deal to cut tariffs on cars and aerospace, adding: “So this is a very good day for both of our countries – a real sign of strength.”

Mr Trump added that the UK was “very well protected” against any future tariffs, saying: “You know why? Because I like them”.

However, he did not say whether levies on British steel exports to the US would be set to 0%, saying “we’re gonna let you have that information in a little while”.

What exactly does trade deal being ‘done’ mean?

The government says the US “has committed” to removing tariffs (taxes on imported goods) on UK aerospace goods, such as engines and aircraft parts, which currently stand at 10%.

That is “expected to come into force by the end of the month”.

Tariffs on car imports will drop from 27.5% to 10%, the government says, which “saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs”.

The White House says there will be a quota of 100,000 cars eligible for import at that level each year.

But on steel, the story is a little more complicated.

The UK is the only country exempted from the global 50% tariff rate on steel – which means the UK rate remains at the original level of 25%.

That tariff was expected to be lifted entirely, but the government now says it will “continue to go further and make progress towards 0% tariffs on core steel products as agreed”.

The White House says the US will “promptly construct a quota at most-favoured-nation rates for steel and aluminium articles”.

Other key parts of the deal include import and export quotas for beef – and the government is keen to emphasise that “any US imports will need to meet UK food safety standards”.

There is no change to tariffs on pharmaceuticals for the moment, and the government says “work will continue to protect industry from any further tariffs imposed”.

The White House says they “committed to negotiate significantly preferential treatment outcomes”.

Mr Trump also praised Sir Keir as a “great” prime minister, adding: “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”

He added: “We’re very longtime partners and allies and friends and we’ve become friends in a short period of time.

“He’s slightly more liberal than me to put it mildly… but we get along.”

Sir Keir added that “we make it work”.

The US president appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British prime minister.

Mr Trump announced his “Liberation Day” tariffs on countries in April. At the time, he announced 10% “reciprocal” rates on all UK exports – as well as separately announced 25% levies on cars and steel.

In a joint televised phone call in May, Sir Keir and Mr Trump announced the UK and US had agreed on a trade deal – but added the details were being finalised.

Ahead of the G7 summit, the prime minister said he would meet Mr Trump for “one-on-one” talks, and added the agreement “really matters for the vital sectors that are safeguarded under our deal, and we’ve got to implement that”.

Business

Poundland to stop paying rent at hundreds of stores in rescue deal

Published

18 hours ago

June 16, 2025

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Poundland to stop paying rent at hundreds of stores in rescue deal

Poundland will halt rent payments at hundreds of its shops if a restructuring of the ailing discount retailer is approved by creditors later this summer.

Sky News has learnt that Poundland’s new owner, the investment firm Gordon Brothers, is proposing to halt all rent payments at so-called Category C shops across the country.

According to a letter sent to creditors in the last few days, roughly 250 shops have been classed as Category C sites, with rent payments “reduced to nil”.

Poundland will have the right to terminate leases with 30 days’ notice at roughly 70 of these loss-making stores – classed as C2 – after the restructuring plan is approved, and with 60 days’ notice at about 180 more C2 sites.

The plan also raises the prospect of landlords activating break clauses in their contracts at the earliest possible opportunity if they can secure alternative retail tenants.

In addition to the zero-rent proposal, hundreds of Poundland’s stores would see rent payments reduced by between 15% and 75% if the restructuring plan is approved.

The document leaves open the question of how many shops will ultimately close under its new owners.

A convening hearing has been scheduled for next month, while a sanction hearing, at which creditors will vote on the plan, is due to occur on or around August 26, according to one source.

The discounter was sold last week for a nominal sum to Gordon Brothers, the former owner of Laura Ashley, amid mounting losses suffered by its Warsaw-listed owner, Pepco Group.

Poundland declined to comment.

Business

Israel-Iran conflict poses new cost of living threat – here’s why

Published

23 hours ago

June 16, 2025

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Israel-Iran conflict poses new cost of living threat - here's why

The UK’s cost of living crisis hangover is facing fresh pressure from the Israel-Iran conflict and growing tensions across the Middle East.

Whenever the region, particularly a major oil-producing country, is embroiled in some kind of fracas, the potential consequences are first seen in global oil prices.

The Middle East accounts for a third of world output.

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Iran’s share of the total is only about 3%, but it is the second-largest supplier of natural gas.

Add to that its control of the key Strait of Hormuz shipping route, and you can understand why any military action involving Iran has huge implications for the global economy at a time when a US-inspired global trade war is already playing out.

What’s happened to oil prices?

Global oil prices jumped by up to 13% on Friday as the Israel-Iran conflict ramped up.

It was the biggest one-day leap seen since Russia invaded Ukraine in February 2022, which gave birth to the energy-driven cost-of-living crisis.

From lows of $64 (£47) a barrel for Brent crude, the international benchmark, earlier this month, the cost is currently 15% higher.

Iran ships all its oil to China because of Western sanctions, so the world’s second-largest economy would have the most to lose in the event of disruption.

Should that happen, China would need to replace that oil by buying elsewhere on the international market, threatening higher prices.

How are natural gas prices holding up?

UK day-ahead prices are 15% up over the past week alone.

Europe is more dependent on Middle East liquefied natural gas (LNG) these days because of sanctions against Russia.

The UK is particularly exposed due to the fact that we have low storage capacity and rely so much on gas-fired power to keep the lights on and for heating.

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The day-ahead price, measured in pence per therm (I won’t go into that), is at 93p on Monday.

It sounds rather meaningless until you compare it with the price seen less than a week ago – 81p.

The higher sum was last seen over the winter – when demand is at its strongest.

What are the risks to these prices?

Market experts say Brent crude would easily exceed $100 (£74) a barrel in the event of any Iranian threats to supplies through the Strait of Hormuz – the 30-mile wide shipping lane controlled by both Iran and Oman.

While Iran has a history of disrupting trade, analysts believe it will not want to risk its oil and gas income through any blockade.

What do these price increases mean for the UK?

There are implications for the whole economy at a time when the chancellor can least afford it, as she bets big on public sector-led growth for the economy.

We can expect higher oil, gas and fuel costs to be passed on down supply chains – from the refinery and factory – to the end user, consumers. It could affect anything from foodstuffs to even fake tan.

Increases at the pumps are usually the first to appear – probably within the next 10 days. Prices are always quick to rise and slow to reflect easing wholesale costs.

Energy bills will also take in the gas spike, particularly if the wholesale price rises are sustained.

The energy price cap from September – and new fixed-term price deals – will first reflect these increases.

How does this all play out in the coming months?

So much depends on events ahead.

But energy price rises are an inflation risk and a potential threat to future interest rate cuts.

While LSEG data shows financial markets continuing to expect a further two interest rate cuts by the Bank of England this year, the rate-setting committee will be reluctant to cut if the pace of price growth is led higher than had been expected.

At a time when employers are grappling with higher taxes and minimum pay thresholds, and consumers a surge in bills following the ‘awful April’ hikes to council tax, water and other essentials, a fresh energy-linked inflation spike is the last thing anyone needs.