New Post Office scandal report sparks call for ‘fast action’ as software is compared to Horizon
A lawyer representing people affected by a “second Post Office IT scandal” has said they “must not” have “a long, hard battle ahead for exoneration and compensation”.
A report today found it is “a reasonable likelihood” that Capture software “created shortfalls” for sub-postmasters prior to the Horizon scandal.
The system, which was the predecessor to Horizon, was rolled out to branches from 1993 onwards.
An inquiry into the Post Office’s Horizon accounting system has heard that more than 900 sub-postmasters were wrongly prosecuted and received criminal convictions because the IT system made it appear as though money was missing at their branches.
At least 40 former sub-postmasters claim they were also falsely accused of stealing as a result of “glitches” in Capture.
The independent report into Capture by Kroll, a risk advisory and financial solutions company, concluded it was “a reasonable likelihood that Capture could have created shortfalls for sub postmasters”.
Kroll has not made any conclusions about the safety of criminal convictions. It did find that 13.5% of all branches may have been using Capture.
The report also discovered that sub-postmasters said that network managers and area managers pressured them to use the system.
It said that legal investigation teams weren’t looking at the question of “bugs or errors” in the system at the time.
Kroll also questioned the Capture Helpdesk remit and effectiveness.
Capture software predates the faulty Horizon system
Following the publication of the report, Neil Hudgell, a solicitor at Hudgells solicitors, told Sky News his firm is advising more than 70 people who experienced unexplained losses at their branches when Capture was in use.
He said: “Like Horizon, it was a flawed system which was destroying lives whilst officials repeatedly ignored the evidence playing out in front of their eyes.”
The independent review has only taken place “as a result of the bravery, determination and resilience of those affected, who came forward to speak about what had happened to them, and ultimately would not let injustice go unchallenged”, he added.
Mr Hudgell is calling for “fast action on these failings” including the creation of a compensation scheme to allow people to “seek speedy settlements, or to further investigate their own individual cases”.
“It should never have needed such a long, hard battle to reach this stage, and there now must not be a long, hard battle ahead for exoneration and compensation,” he said. “As we have seen this year, new legislation can be fast-tracked and introduced to overturn unsafe convictions and clear peoples’ names.”
Lord Beamish, formerly MP Kevan Jones, was at the report briefing meeting and said he believes that records on Capture “do exist”.
“I think some more digging needs to be done at the Post Office,” he said. “I wouldn’t trust the Post Office as far as I can spit.”
He described it as a “copycat” of the Horizon scandal.
A Post Office spokesperson said: “We have, and will continue to, fully support the independent forensic accountancy investigation established by the government into the Capture software.
“We have been very concerned from the outset about the reported problems relating to the use of the Capture software in the 1990s and are sincerely sorry for past failings that have caused suffering to postmasters.
“We remain determined that wrongs must be put right as far as that can be possible.”
Earlier this year, Sky News revealed that the government agreed to have an independent expert review evidence of Capture.
A group of sub-postmasters submitted material, including floppy disks containing the software, to investigators.
They claimed that errors occurred when upgrades were made to Capture, and power cuts were also another possible reason for faults.
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Sub-postmasters previously raised parallels between Capture and Horizon
Steve Marston, 68, says he was wrongly convicted of theft and false accounting after errors caused by Capture accounting software.
Auditors found shortfalls of £79,000 at his branch in Greater Manchester in 1998 – he subsequently pleaded guilty to theft and false accounting.
He said Capture “was totally unfit for use and should never have been released”.
He claims that sub-postmasters were told that “[the software] would make our lives easier and that we would no longer have to do manual accounting as we had in the past”.
He says he was given Capture by the Post Office “and basically left to get on with it without any sort of guidance”.
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Another Capture victim, Steve Lewis, lost his job in 2000 after raising concerns about shortfalls and Capture software glitches.
“I’ve always been looked on as being the man who robbed the Post Office,” he said.
“I lost my post office, the commercial buildings that I had moved my office to, and was forced to sell my family home.”
Mr Lewis claims he was warned “not to be a troublemaker” and told the issues were only happening to him.
It wasn’t until he watched the TV drama, Mr Bates Vs The Post Office, that he “realised” similarities between Horizon victims and himself such as “unexplained losses”.
Documents seen by Sky News also show the Post Office knew Capture was prone to glitches which could cause accounting issues.
In January, the government ordered the Post Office to investigate the claims related to Capture.
A millionaires’ playground, Poole in Dorset boasts some of the most expensive properties in the UK, and has been called Britain’s Palm Beach.
Away from the yachts and the mansions of Sandbanks, however, Poole is also a beer drinkers’ paradise, with 58 pubs in the parliamentary constituency alone.
But now many of Dorset’s pub landlords have joined a bitter backlash against rises in business rates of up to £30,000 in Rachel Reeves’s November budget.
Across the UK, it is claimed up to 1,000 publicans have even banned Labour MPs from their pubs, after the chancellor axed a 40% rates discount, introduced during COVID, from next April.
The row over the rises, brewing since the budget, came to a head in a clash between Kemi Badenoch and Sir Keir Starmer in the final Prime Minister’s Questions of 2025.
“He gave his word that he would help pubs,” said the Tory leader.
“Yet they face a 15% rise in business rates because of his budget. Will he be honest and admit that his taxes are forcing pubs to close?”
The PM replied that the temporary relief introduced during COVID – a scheme the Conservatives put in place and Labour supported, he said – had come to an end.
“But it was always a temporary scheme coming to an end,” he said.
“We have now put in place a £4bn transitional relief.”
Mark and Michael Ambrose, father and son co-landlords of The Barking Cat, said the increases are a ‘pub destroyer’
But in the Barking Cat Ale House in Poole, facing an increase in business rates of nearly £9,000 a year, the father and son co-landlords fear the rises could mean last orders for many pubs.
“We’re sort of in the average area at 157%, but we’ve got a lot of local pubs that are increasing by 600%, and another one by 800%,” Ambrose senior, Mark, told Sky News.
“It’s a pub destroyer. Pubs can’t survive these kinds of increases. It’s not viable. Most pubs are just about scraping by anyway. If you add these massive increases your profit margins are wiped out.
“We struggle as it is. You can’t have that kind of increase and expect businesses to succeed.
“Fortunately, the customers understand. But they still don’t want to have to spend an extra 30 or 50 pence a pint.”
Son Michael added: “It’s all back to front. It’s really these bigger pub companies and supermarkets that need to be facing increased taxes. We can’t handle them. They can.”
Michelle Smith, landlady of the Poole Arms, the oldest pub on the town’s quay, dating back to 1635, said: “Our rates per value is due to go up £9,000 in April, so it’s quite a deal.”
Michelle Smith, landlady of The Poole Arms, said all her prices are going up
“And we had a rates increase just gone as well,” she added. “So our rates had already increased over £1,000 a month last April. So another hit is quite considerable really.
“Prices definitely have to go up with all the different price increases that we’ve got throughout: business rates, wage increases, the beer goes up from the breweries. Everything is going up.”
Backing the publicans, Neil Duncan-Jordan, who became Poole’s first ever Labour MP last year, has written to the chancellor demanding a rethink. He said he is prepared to vote against the tax rise in the Commons.
“They’ve got to listen,” he told Sky News.
“They’ve got to listen to the high street, to publicans, people who run social clubs and listen to problems that they’re facing and the impact that these changes have made.”
Mr Duncan-Jordan said he was prepared to support an amendment to the Finance Bill, which turns the budget into law and had its second reading in the Commons last week.
Despite being suspended for four months for rebelling against welfare cuts earlier this year, he said: “I was discussing this with some MPs just this morning and I’ll be happy to support those. Sometimes you just have to say what you think is right.”
As chancellor, Ms Reeves has regularly raised a glass to pubs and promised to protect them from rising costs.
But Sir Keir has faced the wrath of a publican before, when he was thrown out of a pub in Bath during COVID by an anti-lockdown landlord.
This time, without a U-turn by the chancellor on the business rates increases, pub landlords fear the government has them over a barrel.
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