Post Office (Horizon System) Offences Bill Debate

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Department: Department for Business and Trade
Jonathan Reynolds Portrait Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
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I am pleased to be at the Dispatch Box to welcome the Bill; in doing so, I candidly recognise the difficult legal and constitutional position it represents. I will outline why I believe it is required, and the exceptional nature and caveats that we should all realise on Second Reading.

The Horizon scandal is, quite simply, one of the most egregious miscarriages of justice in British history. It robbed people of their lives, their liberty and their livelihoods. As we now know, driven by a misguided belief that technology was infallible and workers dishonest, the Post Office prosecuted innocent people. Indeed, they were the very people in whom the Post Office should have had the most faith—those who delivered vital services in all our communities.

Those prosecutions caused unimaginable pain and suffering, which no amount of compensation can ever alleviate. To add insult to injury, the journey to justice for the sub-postmasters has been mired in a great many delays and barriers. Some of the people affected have, tragically, passed away before having had the chance to see justice.

The Bill will free hundreds of innocent people of their wrongful convictions, and it affords us the chance to make a huge stride in righting the wrongs of the past. That is why Labour will give it our support. However, this must be just one of several steps still to come if amends are ever to be made for this most insidious of injustices. The convictions must be overturned, compensation must be delivered at pace, and justice must be sought from the independent inquiry.

We must recognise today for what it is: a victory for the sub-postmasters. To have the strength of character to lose everything, and then to get back up and fight is truly humbling, and the recognition and admiration that those people have earned is absolutely right. Nevertheless, Members across the House will be acutely aware of the unprecedented nature of this legislative action. We all recognise that we should not have needed to get to this point, and it is important to explain why we are taking this step, why we believe this is an exceptional case, and why therefore this should never be repeated in future. I hope in this speech to do that.

I wish to recognise the work of the many people who have got us to this landmark occasion. First, no Member could deny that we would not be where we are today, pursuing this particular route, were it not for the recent ITV drama “Mr Bates vs the Post Office.” Although the Horizon Post Office failure is a scandal to which the House has been responding for some time, the drama brought the story to a wider audience and reinvigorated the campaign. It is a powerful reminder of the way that art and culture can be used to tackle injustice and raise public awareness. I thank everyone who was involved in that project, including my constituent Julie Hesmondhalgh.

Secondly, I pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) and Lord Arbuthnot in the other place, and all those colleagues who championed constituency cases from the beginning. Their tireless campaigning has been instrumental in getting us here to today.

Thirdly, I want to recognise the attention that the Under-Secretary of State for Business and Trade, the hon. Member for Thirsk and Malton (Kevin Hollinrake), has given this matter and the progress he has achieved so far. I thank him for working cross-party on the design of this legislation, and for keeping me and my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) regularly updated. I also note that the hon. Member for Sutton and Cheam (Paul Scully), who is in his place, was the first to get to grips with this scandal in the way that was required. He will be leaving this place in the coming months, and I hope that will do so with a sense of pride in the work he did, and I thank him very much for it.

However, today must be a moment when, above all else, credit and recognition go to the sub-postmasters and their courageous search for justice. They have been unrelenting and undeterred, and we owe them a great deal. To be jailed or bankrupted because of faulty IT, and to have no one believe that their character mattered more than numbers on a spreadsheet, is why the scandal struck such a nerve with the public. Without the bravery of the sub-postmasters, we might never have known that this injustice took place—it is worth taking a moment to reflect on that.

The Bill will overturn 690 cases that were prosecuted by the Post Office and Crown Prosecution Service. We know it is a vital step in the course for justice for sub-postmasters, but we also recognise that doing so undermines a fundamental principle of our democracy: the separation of the judiciary and the legislature. Overruling the courts in this way could set an incredibly dangerous precedent, and one that I hope we will never use again. In an era of ever-creeping populism, there is a real threat that the well-intentioned actions we take today could be abused in future for completely unwarranted purposes.

Kevan Jones Portrait Mr Kevan Jones
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I concur with my hon. Friend’s statement about the separation of powers. Does he agree that it is time for the courts and judicial system to reflect on their role in the scandal, and on why they did not raise red flags when they should have done? The hon. and learned Member for Bromley and Chislehurst (Sir Robert Neill) said that we should not criticise individual judges, but some of them acted in a way that, frankly—I say this knowing some of the cases as I do—did not reflect the best of our judiciary.

Jonathan Reynolds Portrait Jonathan Reynolds
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My right hon. Friend makes a powerful contribution. Many things go beyond the Bill and the independent inquiry that we are currently looking at, regarding the role and experience of our constituents in the legal system, how Government and Executive agencies function, and the evidence given to Ministers and the accountability we seek from that. A great deal has to change as a result of this. I understand his point.

Shailesh Vara Portrait Shailesh Vara (North West Cambridgeshire) (Con)
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I thank the hon. Gentleman for giving way; he is being generous with his time. Does he also agree that we must look not only at how lawyers have handled this but, more importantly, at those who produced the evidence in the first place to persuade prosecutions? I hope he will agree that lessons must be learned by those who blindly said, “These people are probably guilty” and built up a case around that when, as we have found, that was not the case.

Jonathan Reynolds Portrait Jonathan Reynolds
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I thank the right hon. Member for making those powerful points, which reflect on the nature of the evidence that was given. One of his hon. Friends has already made the point about the role of technological, computer-based evidence in the legal process. To be frank, there is also the Post Office’s approach to the data as it saw it, which I assume it believed to be a way of unveiling wrongdoing, rather than questioning that data. Most of our constituents ask, “How could the number of convictions have gone from five or six a year to 50 or 60 without that being flagged in some way?” Clearly, the powers that be—at the time—thought the data was revealing wrongdoing, rather than necessarily revealing something going wrong.

We can see from the contributions we have already had that all Members participating in today’s debate and who will participate in the Bill’s future stages are mindful that what we are saying is not only important, but might be referenced in future considerations. In that vein, let me clearly state that this legislation, although far from ideal, is the only option on the table for us to resolve this horrible injustice. But let me further state that any incoming Labour Government would never use this kind of action again. There are exceptional circumstances to this case that make it unique, rather than it being a moment to set a precedent for handling any future injustices.

The Post Office Horizon scandal took place over decades, and there is at least a decade’s worth of investigations that demonstrate the falsehoods behind many of the convictions made against sub-postmasters. That bank of evidence will only grow from the independent inquiry led by Sir Wyn Williams. The challenge to righting this wrong is not a lack of clear evidence, but a sheer volume of cases that is overwhelming the appropriate route to justice through the Court of Appeal. I lament that our justice system is under such strain, and it would be remiss of me not to point out that a better serviced Criminal Cases Review Commission could have avoided the extraordinary step that we must now take.

In addition, we must also recognise that a cohort of sub-postmasters with convictions are understandably reticent to take part in another process in a criminal justice system that so badly failed them the first time around. For the purposes of the historical record, an important qualification for taking this step is the scale of cross-party support that the legislation is attracting. I have raised that point with the Minister before, and I believe it to be an essential safeguard.

Kevin Hollinrake Portrait The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
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May I thank the shadow Secretary of State for his cross-party and collaborative approach, which has brought us a significant step forward? I recognise the points he makes on the scale of the problem, which is why we have to act in this way. It is probably the least worst option for how we deal with this.

May I push back gently on his point that we have only started to act significantly since the TV drama? We welcome the public outcry that came as a result of the drama, the new attention that has been focused on the issue and the 1,200 new claimants who have stepped forward, but I push back because it is important that the public know that we were acting prior to the drama. We implemented the shortfall scheme in 2020, the inquiry back in 2020 and the GLO compensation scheme in 2021. The Horizon Compensation Advisory Board was put in place early in 2023, and the fixed-sum awards of £600,000 were put in place in autumn last year. We also had the overturned convictions and the exploring of different ways to do that on a mass basis. All these things were in place by the time of the Post Office (Horizon System) Compensation Act 2024, which we considered in December last year, and which the shadow Secretary of State and I spoke to during its consideration. Much work has been undertaken. We very much welcome the new impetus we have all got from the attention that the drama has brought about.

Jonathan Reynolds Portrait Jonathan Reynolds
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I am always keen to hear from the Minister. I thought I was fair in making the point he raises in my introductory remarks. I simply make the point that the constitutional significance of legislation like this requires a level of public consent. The statement that the Prime Minister made in January, just after Prime Minister’s questions, would not have been possible without the sheer breakthrough in public consent and the demand for change and for justice that came from that. I will always be fair to the Government’s Ministers, and I point out even to some of their critics that we were dealing with things. We had the legislation that colleagues had worked on. It is fair to say there was less interest in some of that in the Chamber before we had the television programme, but let us be frank that we had the impasse of people not wanting to go back to the process. The estimate we had at the time was 10 to 15 years. That is what brought us to that point, and we have to recognise that, as well as paying tribute to the role that arts and culture can play in bringing things to an audience, which we should welcome.

Finally, I think I speak for everyone in the Chamber when I say that in no way does anyone take lightly what we are proposing to do today. This action is unprecedented, and we should make every effort possible to ensure that such action never again has to be considered.

David Davis Portrait Sir David Davis
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This legislation is not totally the first precedent. There have been cases relating to people who were shot in the first world war for cowardice and then exonerated after the event, and so on. Does the shadow Secretary of State agree with the notion that we should put a sunset clause on this provision, to ensure that it in no way becomes a precedent?

Jonathan Reynolds Portrait Jonathan Reynolds
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When we look at the precedents, it is interesting to note that there is clearly a legal difference between quashing a conviction and a pardon after an event has taken place, which is the precedent we are more familiar with. I am receptive to what colleagues are saying about a sunset clause from a judicial or safeguarding point of view. Clearly we want to capture as many people as possible who deserve to have their convictions quashed. When we get to Committee, which I assume will be on the Floor of the House, I am sure there will be an attempt to do that.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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Is not the point about a sunset clause that none of us knows what is around the corner or what the future holds? Once this legislation has expired, the law of sod dictates that somebody somewhere will come up with a case that requires to be dealt with. That is eminently possible. A sunset clause would serve no useful purpose, other than smoothing a few ruffled judicial legal feathers.

Jonathan Reynolds Portrait Jonathan Reynolds
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I hear what the right hon. Gentleman is saying, and we do not want to do Committee stage on Second Reading. We are hearing about the necessity of ensuring that, where cases fall beyond the specific circumstances—to be fair to the Government, I understand why the legislation has been drafted in this way to address this particular cohort, for simplicity and straightforwardness—they can still be identified. Some of that could be done on the numbers, but we will have time to explore this matter in Committee.

Ian Paisley Portrait Ian Paisley
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On the issue of consent, the shadow Secretary of State is right to point out that all sides of the House have consented to this legislation, and that is what makes law change flow much easier. A lot of good will has been expressed about Northern Ireland and increasing the territorial extent of this legislation, but that good will butters no parsnips—as someone else in the House often says. The fact of the matter is that, ultimately, we must ensure that Northern Ireland is included in this legislation. If a motion came forward to instruct the House to extend the Bill to cover Northern Ireland, would the Opposition support it, so that those fine words and good will are turned into strong action?

Jonathan Reynolds Portrait Jonathan Reynolds
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I will say something specifically about the territorial extent of the Bill, but the straightforward answer is yes, there are circumstances here to which we should listen. I hope the hon. Member will not mind me saying this, but when all political parties in Northern Ireland are in agreement on something, it is usually worth listening and understanding why that might be the case. I will address specifically how we might deal with that matter later in my remarks.

Liam Byrne Portrait Liam Byrne
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The shadow Secretary of State is making a brilliant speech. Does he agree that we might want to reflect on measures to de-risk the speed of paying compensation? It is important that we overturn convictions, but it is also right that we accelerate compensation. Just because the Department is running the scheme is not necessarily a guarantee that payments will flow quickly. This morning, the Business and Trade Committee crunched the data on the GLO scheme, and unfortunately it would appear that 14% of offers have taken more than 14 days, 4% have taken more than 80 days, and 2% have taken more than 100 days. We obviously need to get the measures right, and there are lots of issues at play, but de-risking the speed of compensation sounds like something we should reflect on.

Jonathan Reynolds Portrait Jonathan Reynolds
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I thank my right hon. Friend for those remarks and for all the work the Select Committee has done to assist this process. He is right to say that while it is one thing to pass the Bill, what everyone wants is for it to be a route to speedy compensation as soon as possible. I welcome some of the changes we have seen, such as the optional £600,000 up-front payment available to people to get through some of the complexity of the cases. When the Select Committee published its report, it looked at the recommendation to include in the Bill deadlines for the Government to pay compensation, but we have since received useful information about how binding limits might restrict the most complex cases in an undesirable way. In his closing remarks, will the postal affairs Minister undertake on behalf of the Government to reflect on that point, because everyone will want to be able to say, “We care, and we have pushed forward the need for compensation payments to flow smoothly.”

Kevan Jones Portrait Mr Kevan Jones
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I have to say to my good friend the shadow Minister that this is where I depart from the Select Committee. The advisory board has been very clear that we need to make the system simple. To be fair to the Government, they have listened on the lump-sum payments. What we need is to get those simple cases out of the system—I am not sure they are “simple”—and concentrate on the complex cases. Knowing the nature of some of those cases, they will be complex. It is not just the Government or the advisory board saying that. Talk to the lawyers who are putting cases in. There is a lot of work to be done on those cases; they are not straightforward and they will take time. Putting an arbitrary deadline on them might lead to their not being properly addressed, and some cases will be about more than £600,000. Although it is a good idea to try to speed up the system, some of the steps already taken by the Government will do so.

Jonathan Reynolds Portrait Jonathan Reynolds
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I thank my right hon. Friend for that. The work of the advisory board on all this has been invaluable and is very much appreciated. We can all accept that a number of cases may seek compensation payments well in excess of £600,000 because of the scale of the loss and the complexity. No one would want or seek to do anything to prevent those cases from concluding in the way that is necessary. I simply ask the Minister to reflect on how the Government can give assurances on the best way to do that.

I come back to the issue raised by colleagues from Northern Ireland about the territorial extent of the Bill’s provisions and the desire to overturn the convictions of the small but significant number of affected sub-postmasters in Northern Ireland, who would otherwise fall beyond the scope of the legislation. I can tell colleagues that the Labour party supports the calls made. I understand that this would be a complex constitutional undertaking, but given that every party in Northern Ireland and, I believe, every Minister in the new Assembly are calling for inclusion in the Bill, we must recognise that.

Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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Because this is an unusual case, the Scottish Government have specifically asked that the Bill also take in Scotland. I understand that the Labour party supports that position too, but we have not really heard any rational reason why Scotland and Northern Ireland are excluded from the Bill.

Jonathan Reynolds Portrait Jonathan Reynolds
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The hon. Gentleman will not mind my teasing him about a call for Unionism from the Scottish National party. [Interruption.] Just on this issue! As I understand it, the issue is that the Scottish judiciary does not support inclusion.

Jonathan Reynolds Portrait Jonathan Reynolds
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Hon. Members will have a chance to speak; I cannot speak for every part of the judiciary in the UK, but I believe that that is the issue. The nature of the always distinct legal system in Scotland is a key part of this, whereas in Northern Ireland it is slightly more complicated.

Alistair Carmichael Portrait Mr Carmichael
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I fear that the issue is not so much with the Scottish judiciary as with the prosecuting authorities, given the remarks already on the record from the Lord Advocate. If I may, I will offer the hon. Member for Glasgow South West (Chris Stephens), through the shadow Minister, a rational reason: it is about political accountability. The lines of political accountability lie through the Scottish Parliament and the Crown Office. There are good and compelling reasons about delay for making an exception for Northern Ireland, particularly in relation to the requirement for a full public consultation. Those arguments do not apply in Scotland.

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Jonathan Reynolds Portrait Jonathan Reynolds
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I hear what the right hon. Member says. I can foresee it being seen as reasonable to extend the legislation to Northern Ireland in a way that will not apply to Scotland, given the position of a lot of colleagues in Scotland and without the Scottish Parliament and Scottish judiciary wanting to be part of that extension.

Carla Lockhart Portrait Carla Lockhart (Upper Bann) (DUP)
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The shadow Secretary of State is making a powerful speech, particularly about the impact on the lives of the sub-postmasters. The 28 or so in Northern Ireland have experienced the same turmoil as those in Great Britain. We thank the shadow Secretary of State for his endorsement of Northern Ireland’s inclusion in the Bill. We would make a further call for that today.

Jonathan Reynolds Portrait Jonathan Reynolds
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I am grateful to the hon. Member for those words. I know that colleagues from Northern Ireland are keen to bring forward an amendment on that. I ask Ministers to reflect on the scale of political support that we have seen and are seeing, and to take the issue away for further consideration before the Committee stage, so that justice can be brought to the 27 sub-postmasters—I think—in Northern Ireland.

To conclude, for many people who watched the ITV adaptation of the Horizon scandal in January, it will have been hard to believe that the ongoing tragedy was not a work of fiction, so egregious and pernicious have the impacts been on people’s lives. However, it was not a TV show. It is very real and has had real-world impacts. Lessons must be learned and justice must be served. In the weeks after the drama, I believe attention sadly had to be turned away from the sub-postmasters and their needs, and the conversation became much more about the soap opera that has been seemingly ongoing with the management of the Post Office. Addressing that issue will demand serious attention, but the priority today should be providing sub-postmasters with justice. It is welcome that we have returned to that core issue today.

Labour will support the legislation. It is right that innocent people have their convictions overturned, not just so that they can begin to turn the page on the scandal, but so that it leads to the quick access to compensation that everybody rightly deserves. Not every story will finish with a happy ending. As we know, some people did not live to see this, and others have lost so much that their lives could never be put right. However, the actions we can take in this place can go at least some way to ensuring that the next chapter of the story of the sub-postmasters will be their own and will be based on the principles of justice and fair treatment that everyone wants to see.

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Jonathan Reynolds Portrait Jonathan Reynolds
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Will the hon. Lady give way?

Marion Fellows Portrait Marion Fellows
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I want to move on, but I will.

Jonathan Reynolds Portrait Jonathan Reynolds
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I am extremely grateful to the hon. Lady. I am absolutely willing to listen to the case she is making—that we could, in theory, amend the Bill to cover Scotland—but I do not, if I am being honest, follow the logic that it would take longer to pass a Bill affecting Scottish sub-postmasters in the Scottish Parliament than to amend the Bill before us. I do not agree that extending it to Northern Ireland would in any way adversely affect the Scottish situation.

Marion Fellows Portrait Marion Fellows
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The hon. Member has every right to disagree with me, but I come back to my main point. The Scottish legislation would have to mirror what is done here so we treat victims across the piece the same way, but there would have to be certain amendments made because of Scots law. That is my point: we cannot do it in Scotland until it is done here, so that it mirrors what has been done here.

The other point I want to make is that this has nothing to do with the Scottish Parliament or the Northern Ireland Assembly. The whole business of Horizon arose here under Post Office Ltd, which is wholly owned by the UK Government as the single shareholder. There is therefore a logic to saying that the mess was made here, so it should be cleared up here. No matter whether there ends up being a separate Bill in Scotland with this Bill relating only to England and Wales, everyone across parties agrees that this must be sorted. The Bill is not really what we would all want to do—it is unprecedented, there are risks and so on—but at the end of the day it has to be done. The Scottish Government understand and support that, but want it done here to cover everyone.