Post Office described IT bugs as ‘exceptions’ to make them sound ‘non-emotive’, inquiry told
Senior figures at the Post Office began describing computer bugs as “exceptions” as they grappled with mounting complaints from sub-postmasters about its faulty Horizon IT system, it has emerged.
The then Post Office chief executive Paula Vennells made the suggestion to colleagues after she asked her husband for advice on a “non-emotive” way of referring to computer problems, the inquiry into the Post Office scandal heard.
It came amid concern within the company about bad publicity over the prosecution of sub-postmasters accused of stealing from branches.
Between 1999 and 2015, more than 700 Post Office managers were prosecuted after the faulty accounting software, provided by Fujitsu, made it seem like money was missing. At the time, the company insisted its systems were robust.
On Tuesday the inquiry heard evidence from the Post Office’s former lead in-house lawyer Susan Crichton, who was quizzed about a series of emails sent between senior figures.
This included a message from Ms Vennells, written in July 2013, which said: “My engineer/computer literate husband sent the following reply to the question: ‘What is a non-emotive word for computer bugs, glitches, defects that happen as a matter of course?’
“Answer: ‘Exception or anomaly. You can also say conditional exception/anomaly which only manifests itself under unforeseen circumstances xx'”
The Post Office’s director of communications at the time, Mark Davies, replied: “I like exception v much. Very helpful”.
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Post Office: New evidence revealed
Following the exchange, Post Office emails and documents began referring to computer problems as “exceptions” and “anomalies”, including in a briefing document written by Ms Crichton. The wording was also then used in a briefing note to MPs.
Julian Blake, counsel to the inquiry, asked the retired lawyer: “The wording here that’s being used, is there an element of smoke and mirrors about the whole thing now?”
She replied: “It certainly reads that way”.
Mr Blake said the use of “exception” instead of “bug” was “absolutely Orwellian”.
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The inquiry was also shown correspondence between senior figures about whether to launch a review into alleged cases of theft. An email from Ms Crichton showed she was against a full independent investigation into sub-postmasters who had already been convicted.
She wrote in June 2012: “I do not think that we want to be seen as re-opening cases but rather position this as a review of the existing evidence to enable an understanding of the outstanding concerns and the facts… For those who have not been prosecuted we can offer a full independent investigation”.
Ms Crichton agreed with Mr Blake that her stance had been a “mistake on her part”, and added: “I was too short-sighted maybe”.
She told the inquiry that she “tried to stop prosecutions reliant on Horizon evidence” but left her role as the company’s general counsel in late 2013 as former Post Office chair Alice Perkins had lost confidence in her.
Earlier, Ms Crichton began her evidence with an apology to those affected by the scandal.
“l am truly sorry for the suffering caused to you and your families. I wish that things had been resolved more quickly and again, I’m very sorry that they haven’t been,” she said.
The inquiry continues.
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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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