Post Office had ‘bunker mentality’ towards press, lawyer tells inquiry
A sub-postmaster victim of faulty IT software Horizon was described as a “bluffer” when he alerted senior Post Office officials about bugs in the system.
One of the Post Office’s heads of legal Rodric Williams dismissed the complainant and told the Post Office Horizon Inquiry on Thursday there was “bunker mentality” among staff in relation to the media’s coverage of the IT system.
The inquiry has been hearing evidence to examine who in government and the Post Office knew what and when about the accounting computer programme that falsely generated financial losses at Post Office branches across the UK and led to the conviction of hundreds of sub-postmasters who ran branches for theft and false accounting.
As a result of Horizon’s errors, many other sub-postmasters lost homes, moved out of their communities, and became unwell having wracked up significant debts and had their reputations ruined.
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But in 2015 – while prosecutions were taking place with Horizon data and four years before the Post Office would apologise for the miscarriage of justice – the warnings of former sub-postmaster Tim McCormack were dismissed.
“Generally, my view is that this guy is a bluffer, who keeps expecting us to march to his tune,” Mr Williams – who is now tasked with dealing with Horizon complaints – said in an email to colleagues.
“I don’t think we should do that, but instead respond with a straight bat.”
The lawyer had been asked by former chief executive Paula Vennells to look into, what Mr McCormack said, was “clear and unquestionable evidence of an intermittent bug in Horizon that can and does cause thousands of pounds in losses to sub-postmasters”.
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‘Bunker mentality’
Mr Williams agreed that there was an element of siege mentality at the Post Office against media questioning.
“I don’t know if I can speak for senior management but I do think certainly where I was sitting it did feel a bit bunker mentality, yes,” he told the inquiry.
When asked by barrister for the inquiry, Jason Beer: “It’s that siege mentality again, Mr Williams, isn’t it? Challenges to the Post Office are hostile and must be fended off rather than considered on their merits.”
Mr Williams responded, “I think that’s maybe overstating but there’s probably something in that, I think, that’s fair”.
‘Take it or leave it’
In response to a 2014 media request about Horizon satisfaction levels among sub-postmasters, Mr Williams effectively said they could use the system or leave.
“We don’t need to do research on Horizon – it’s the system we provide to our agents and require them to use. If agents don’t like it, they can choose not to provide services for us,” he said at the time.
“The vast majority of our agents and other users work with it just fine, and we’re not required to bespoke our point of sale accounting system to the whims of each individual agent.”
He was asked if it was his view, in 2014, that sub-postmasters could either use Horizon or leave he replied “yes”.
Mr Williams began at the organisation in 2012 as a litigation lawyer and still works there as the head of the remediation unit set up to address sub-postmaster complaints about Horizon.
His evidence continues on Friday.
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Ms Vennells has said: “I continue to support and focus on co-operating with the inquiry and expect to be giving evidence in the coming months.
“I am truly sorry for the devastation caused to the sub-postmasters and their families, whose lives were torn apart by being wrongly accused and wrongly prosecuted as a result of the Horizon system.
“I now intend to continue to focus on assisting the inquiry and will not make any further public comment until it has concluded.”
Business
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The average two-year mortgage rate has fallen below 5% for the first time since the Liz Truss mini-budget.
The interest rate charged on a typical two-year fixed mortgage deal is now 4.99%, according to financial information company Moneyfacts.
It means there are more expensive and also cheaper two-year mortgage products on the market, but the average has fallen to a near three-year low.
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Not since September 2022 has the average been at this level, before former prime minister Liz Truss announced her so-called mini-budget.
The programme of unfunded spending and tax cuts, done without the commentary of independent watchdog the Office for Budget Responsibility, led to a steep rise in the cost of government borrowing and necessitated an intervention by monetary regulator the Bank of England to prevent a collapse of pension funds.
It was also a key reason mortgage costs rose as high as they did – up to 6% for a typical two-year deal in the weeks after the mini-budget.
Why?
The mortgage borrowing rate dropped on Wednesday as the base interest rate – set by the Bank of England – was cut last week to 4%. The reduction made borrowing less expensive, as signs of a struggling economy were evident to the rate-setting central bankers and despite inflation forecast to rise further.
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Bank of England cuts interest rate
It’s that expectation of elevated price rises that has stopped mortgage rates from falling further. The Bank had raised interest rates and has kept them comparatively high as inflation is anticipated to rise faster due to poor harvests and increased employer costs, making goods more expensive.
The group behind the figures, Moneyfacts, said “While the cost of borrowing is still well above the rock-bottom rates of the years immediately preceding that fiscal event, this milestone shows lenders are competing more aggressively for business.”
In turn, mortgage providers are reluctant to offer cheaper products.
A further cut to the base interest rate is expected before the end of 2025, according to London Stock Exchange Group (LSEG) data. Traders currently bet the rate will be brought to 3.75% in December.
This expectation can influence what rates lenders offer.
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