Kemi Badenoch hits out at ex-Post Office chair after he claims government told him to delay compensation for postmasters until after the election

Kemi Badenoch hit out today after a former Post Office chairman claimed he was told to ‘stall’ on compensation ahead of the general election.

The Business Secretary said she had been ‘misrepresented’ in an incendiary interview given by Henry Staunton, who left the role last month amid the fallout from the Horizon IT scandal that saw hundreds of postmasters wrongfully prosecuted.

Mr Staunton, who took up the role in December 2022 following nine years as chairman of WH Smith, suggested that Whitehall wanted to hold back spending ahead of the election.

He also said that when Ms Badenoch told him he had to go she said: ‘Well, someone’s got to take the rap for this.’

However, in a lengthy response on the X social media site this afternoon, Ms Badenoch said: ‘My call with Staunton was with officials. They 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 govt lawyers.’

Ms Badenoch said that the government ‘will make a statement tomorrow telling the truth about what’s been happening’.

Former Post Office chairman Henry Staunton claimed he was told to ‘stall’ on compensation ahead of the general election

Mr Staunton left the role last month after Business Secretary Kemi Badenoch (pictured) insisted ‘new leadership’ was needed to tackle fallout from the Horizon IT scandal

The Business Secretary said she had been ‘misrepresented’ in the interview given by Mr Staunton, and promised to make a full statement tomorrow

Mr Staunton told the Sunday Times: ‘Early on, I was told by a fairly senior person to stall on spend on compensation and on the replacement of Horizon, and to limp, in quotation marks – I did a file note on it – limp into the election.

‘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”.

‘The word ”limp” gives you a snapshot of where they were.’

There has been a national wave of anger about the scandal since postmasters’ long fight for justice was highlighted by a major ITV drama.

Labour and the Lib Dems seized on the comments by Mr Staunton. But Home Office minister Michael Tomlinson denied there was an effort to delay compensation during a round of interviews this morning.

‘I don’t accept or recognise that,’ he told Times Radio.

‘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.

‘I just don’t recognise anything to the contrary of that.’

A Government spokesman 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.

There has been a national wave of anger about the scandal since postmasters’ long fight for justice was highlighted by a major ITV drama

‘The Secretary of State asked Henry Staunton to step down as chairman of the Post Office because a change in leadership was needed.’

More than 700 branch managers were prosecuted by the Post Office between 1999 and 2015 after faulty Horizon accounting software made it look as though money was missing from their shops.

Hundreds of subpostmasters and subpostmistresses are still awaiting compensation despite the Government announcing that those who have had convictions quashed are eligible for £600,000 payouts.

Rishi Sunak also announced blanket legislation to exonerate those wrongly prosecuted in the wake of public outcry.

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