Pressure mounts on Fujitsu to repay ‘fortune’ spent on Post Office scandal
Former postmistress Jo Hamilton’s Village Shop and Post Office in South Warnborough, near Odiham (Photo by Adrian DENNIS / AFP) (Photo by ADRIAN DENNIS/AFP via Getty Images)
Fujitsu should repay the “fortune” spent on the Post Office scandal if it is found culpable, the justice secretary Alex Chalk has suggested, as pressure increases on the firm behind the faulty Horizon software.
If the inquiry, which resumes today (11), finds the “scale of the incompetence is as we might imagine”, ministers would want to “secure proper recompense on behalf of the taxpayer”, Chalk said, adding that the government would wait for the conclusions of the inquiry chaired by the retired judge Sir Wyn Williams before it decides what action to take against the company.
“But bluntly, if the scale of the incompetence is as we might imagine, then I simply would want to secure proper recompense on behalf of the taxpayer,” the cabinet minister told ITV’s Peston.
“It’s absolutely right that there should be justice across the piece, yes for the sub-postmasters, which we’re talking about today, but frankly also for the taxpayer. This has cost and will cost a fortune.”
Hundreds of Post Office branch managers were convicted of swindling money on the basis of evidence from the technology giant’s flawed Horizon accounting system. Fujitsu said it was sorry for its role in sub-postmasters' suffering.
No-one from Fujitsu has been held to account for failures with Horizon, the software it supplied to the Post Office. The firm has not paid any compensation to victims and has continued to win government contracts for its IT services worth billions of pounds.
The public inquiry into the scandal is still waiting to hear from Gareth Jenkins, Fujitsu's former chief IT architect, BBC reported. His court testimony was central to convictions of many sub-postmasters and used repeatedly by Post Office lawyers in court cases to say that the Fujitsu IT system was working correctly.
Lord Maude of Horsham, who served as Cabinet Office minister under David Cameron, said if Fujitsu had “any sense of honour”, it would swiftly make a significant payment towards the compensation of wrongly convicted post office operators.
This comes after Prime minister Rishi Sunak announced on Wednesday (10) that hundreds of post office operators in England and Wales could have their names cleared by the end of the year under blanket legislation to be introduced within weeks.
Sunak announced a £75,000 offer for post office operators involved in a group legal action against the company – with ministers setting aside up to £1bn for compensation.
Almost half of UK consumers intend to spend on Valentine’s Day this year or have already started to spend on it, bringing an immense opportunity for retailers to utilise the popularity of this occasion and encourage larger basket sizes and boost average spending.
GlobalData’s latest report, “Retail Occasions: Valentine’s Day Intentions 2025,” reveals 69.3 per cent of UK 25–34-year-olds intend to spend on this occasion, marking a 7.8 percentage points (ppts) uplift on 2024 intentions. This age group will account for almost a quarter of Valentine’s Day shoppers in 2025, meaning this is a core target demographic for retailers.
Zoe Mills, Lead Retail Analyst at GlobalData, comments: “Intention to spend on Valentine’s Day is high, but few consumers have started to spend on this occasion so far in January, meaning retailers still have plenty of time to entice shoppers to purchase.
"The grocers are in the best position, with the intention to spend the highest among the food and drink and gifting categories. Romance-themed meal deals including prosecco/champagne, should be promoted at the front of stores.
“However, with the target audience likely to have children, retailers should also include Valentine’s Day-themed products that appeal to a much younger audience. Retailers should emulate Marks & Spencer’s range, including items like Love Hearts Biscuit Kits, enabling adults and children to decorate heart-themed biscuits.”
While partners are the main recipients among Valentine’s Day gift shoppers, more consumers intend to spend on their children for the event, highlighting that this occasion is not just about romantic love but also familial love, coupled with self-love and the appreciation of one’s friends.
Mills continues, “There is ample opportunity for retailers to broaden their reach with this occasion and ensuring a variety of more generic love-themed designs will enable their products to be gifted to a broad range of recipients. 11.9% of Valentine’s shoppers intend to purchase gifts for friends, up 3.2ppts on 2024.
"This trend is driven by Gen Z consumers, with 59 per cent of this generation stating that Valentine’s Day is not just an occasion to treat their partner and that they like to buy gifts or cards for other loved ones. Events such as Galentine’s Day parties, celebrating friendship, may still be niche but must not be ignored by retailers.”
GlobalData expects that food and drink gifts will be the most popular among Valentine’s Day shoppers, and retailers must ensure plenty of food and drink gift sets to appeal to shoppers, focusing on confectionery and alcoholic drink gift sets.
Mills concludes, “Retailers must focus on food and drink gifts, where the intention to spend is high. The higher intention to spend on these items also implies that Valentine’s Day gifts are more of a token than an excuse to splurge on premium options such as fine jewellery, and retailers must ensure a broad pricing architecture to appeal.
"Flowers are also an accessible option for male Valentine’s Day shoppers, and providing a broad range to cater to different colour preferences is crucial.
"Red roses or red and pink bouquets should not be the only options; fun and colourful bouquets could appeal to those looking for something less traditional and more generally to those seeking these gifts for friends.”
In a bid to better protect young people and prevent knife-related violence, the government has announced tougher age verification measures for online knife sales and a ban on doorstep deliveries of bladed weapons.
These new rules are part of a broader strategy to halve knife crime within the next decade.
Under the new regulations, online retailers will be required to implement a stringent two-step verification process. Customers purchasing knives will need to provide photo identification, such as a driving licence or passport, at the point of sale and again upon delivery. Additionally, delivery companies will only be permitted to hand over bladed articles to the individual who made the purchase, with doorstep drop-offs strictly prohibited if no one is available to receive the package.
The measures also include the potential for customers to submit a current photo or video of themselves alongside their ID, as well as proof of address, such as a utility bill.
“It’s a total disgrace how easy it still is for children to get dangerous weapons online,” home secretary Yvette Cooper said.
“More than two years after Ronan Kanda was killed with a ninja sword bought by a teenager online, too many retailers still don’t have proper checks in place. We cannot go on like this. We need much stronger checks – before you buy, before it’s delivered.”
The announcement follows a comprehensive review led by Commander Stephen Clayman, the national police lead on knife crime, which examined the online sale and delivery of knives. The full report, expected by the end of the month, is set to recommend stronger ID checks as a key solution to the problem.
In addition to these measures, the government has already committed to holding social media companies accountable for content that glorifies or incites knife violence. Senior executives could face fines of up to £10,000 if they fail to promptly remove such material from their platforms.
The new rules will be included in the upcoming Crime and Policing Bill, which is expected to be introduced to Parliament by spring.
A leading retail body has warned that the new Deposit Return Scheme (DRS), announced this week by the Department for Environment, Food and Rural Affairs, could inadvertently disadvantage smaller high street retailers when it launches in October 2027.
The British Independent Retailers Association (Bira), which works with over 6,000 independent businesses of all sizes across the UK, has raised concerns about the practical implications of the scheme for smaller retailers.
Under the new regulations, retailers selling drinks in single-use containers will be required to host return points for these containers unless they qualify for an exemption.
While shops under 100m² in urban areas will be exempt, many independent retailers will still need to accommodate return facilities and storage areas for collected containers.
Andrew Goodacre, CEO of Bira said "While we support environmental initiatives, we have significant concerns about how the Deposit Return Scheme will impact independent retailers.
"This scheme will add more costs to running a shop at a time when retailers are already facing unprecedented pressures. Smaller shops will find it particularly challenging to accommodate the self-return machines, and storage of returns could become a significant problem.
"Most recycling will likely take place in the large supermarkets on retail parks, potentially driving even more footfall away from our town centres as consumers combine bottle returns with their shopping trips."
The scheme, which applies to single-use drinks containers made from aluminium, steel, or PET plastic with a capacity between 150 millilitres and 3 litres, will require retailers to charge a refundable deposit to consumers at the point of sale.
While supporting environmental initiatives, Bira emphasises the need for careful consideration of the scheme's impact on independent retailers and high street vitality.
PayPoint Group has delivered another positive quarter, with robust performance across its key seasonal businesses, reinforcing its confidence in meeting FY25 expectations and achieving its ambitious target of £100 million EBITDA by the end of FY26.
In a trading update for the three months ended 31 December 2024, the group reported a 1.9 per cent increase in net revenue to £53.0 million, driven by strong performances in its e-commerce and Love2shop divisions.
“Our business has continued to deliver further progress in the third quarter building on our strong first half year performance, despite a more challenging overall trading environment and a stalled recovery in consumer confidence,” Nick Wiles, chief executive of PayPoint Plc, said.
“During the period, our seasonal businesses in particular have performed well and, for the business as a whole, the board remains confident in the delivery of further progress in the year and meeting expectations.”
In the shopping division, retail services net revenue increased by 1.9 per cent to £8.2 million driven by further PayPoint One/Mini site growth. However, card payment revenues declined by 5.7 per cent to £7.8 million, reflecting lower consumer spending and a challenging environment for UK consumers.
Overall, shopping divisional net revenue decreased by 2.0 per cent to £16.1 million.
The e-commerce division delivered a record quarter, with parcel transaction volumes up 36.8 per cent to 35.8 million, driven by the growing popularity of its Collect+ network for out-of-home fulfilment. The division’s net revenue increased by 32.0 per cent to £4.1 million. PayPoint’s partnership with Royal Mail has also gained momentum, with plans to expand the number of Royal Mail sites and volumes. Additionally, the goup is making strides in engaging with Chinese and South Asian marketplaces, with services expected to go live in the final quarter.
“We will be starting a number of initiatives through our network with SF Express in Q4, the leading integrated logistics service provider with an extensive PUDO network in China, focused on enabling our services in Chinese communities across the UK,” Wiles said.
In the payments & banking division, net revenue grew by 0.8 per cent to £14.0 million, supported by the continued expansion of the MultiPay platform and Open Banking services. PayPoint also completed the majority ownership of obconnect in October 2024, which is expected to contribute modestly in the second half of the year.
The Love2shop division saw a 1.3 per cent increase in net revenue to £18.8 million, with billings reaching £71.2 million, up from £66.8 million in the same period last year. The division’s strategic partnership with InComm Payments has driven significant growth, with Love2shop gift card sales increasing by 69 per cent year-on-year. Park Christmas Savings also delivered a solid performance, with billings of £162.2 million, consistent with the previous year.
Reflecting the group’s strong performance, the board declared an increased interim dividend of 19.4 pence per share, up 2.1 per cent from the previous half-year.
“As we continue towards delivering £100m EBITDA by the end of FY26, our confidence in our business resilience and growth is underpinned by the breadth of opportunities across all of our divisions and maintaining the right organisational structure and cost base to support the delivery of our growth plans,” Wiles concluded.
A new report from the Association of Convenience Stores (ACS) celebrates the vital role of the UK’s nearly 19,000 rural convenience stores, highlighting their significant investment, community contributions, and diverse services.
This recognition, however, comes despite the considerable challenges these businesses face. The 2025 Rural Shop Report, released today (29 January), details how rural retailers positively impact their communities and argues for increased government support to ensure their continued success.
Key findings from the report underscore the importance of these stores: they provide secure, flexible employment for over 178,000 people; 40 per cent are the sole convenience store in their area, serving as a lifeline for residents; they generated £18.5 billion in sales last year; and rural retailers have collectively invested over £240 million in their businesses over the past year to better serve their communities.
The report highlights the unique challenges that rural retailers face compared to their more urban counterparts, including a lack of connectivity, issues with the cost and availability of deliveries, theft and other retail crime, and more.
Hopes of Longtown, featured in the report, is an award-winning village shop and post office at the foot of the Black mountains in Hereford, is a case in point. The shop currently receives 100 per cent discretionary business rates relief from the local council because of its status as the only shop in the village, but owner Christine Hope is concerned that this could be dropped as councils deal with growing budget deficits.
“Hundreds of thousands of people in isolated areas across the UK rely on their local shop to provide them with the products and services that they need. If rural shops aren’t able to survive, invest and adapt, nobody will step in the host the post office, offer other essential services and promote the human interaction and social glue that binds those communities,” ACS chief executive James Lowman commented.
“These shops need to be supported by both local and national policymakers at a time when costs are rising significantly as a result of the Budget. We are calling on all MPs in rural constituencies to commit their support for the rural shops that trade at the heart of their communities.”