Fujitsu: Government Contracts

Lord Arbuthnot of Edrom Excerpts

Wednesday 9th July 2025 Lords Chamber

[Baroness Anderson of Stoke-on-Trent (Lab)]

My noble friend makes the most important of points, which is about the impact on people, and the victims of the Horizon scandal, a lot of which we heard yet again yesterday. It broke my heart and other people’s hearts.

On my noble friend’s specific question, the Procurement Act, which was passed by Your Lordships’ House in 2023, provides buyers with more scope to exclude suppliers who have performed poorly on previous relevant contracts. Previously, exclusion was possible only if poor performance had led to termination of a contract, damages or comparable sanctions. Due diligence on such failures is also more straightforward as the Act now provides for the sharing of information on poorly performing suppliers. This information is publicly available via notices published on the central digital platform.

With regards to the Trader Support Service contract, HMRC is currently undertaking a competitive procurement process for the renewal of that scheme, and it would therefore be inappropriate of me to comment further.

[Lord Arbuthnot of Edrom (Con)]

My Lords, Fujitsu has paid not one penny towards the victims of the havoc and misery that it helped to cause. Is the Government —is the country—over a barrel to Fujitsu? If not, why is Fujitsu still winning government work? If we are, what are the Government doing about it?

[Baroness Anderson of Stoke-on-Trent (Lab)]

I want to put on record my personal thanks for the work that the noble Lord did in getting us to this point. Even with yesterday’s report, we would not have got as far as we have without his work and that of my noble friend Lord Beamish.

With regard to the role of Fujitsu and its contribution towards compensation and redress, it has accepted that it has a moral obligation to give funds, but the noble Lord will be even more aware than I am that we are yet to see a penny. The Secretary of State met the CEO of Fujitsu on 7 March. Fujitsu has agreed that it will have to make a financial contribution, but I am urged not to give a running commentary, although we will welcome any interim payment in due course.

With regards to ongoing contracts, the noble Lord will be aware that there have been 12 contracts in the last 12 months issued to Fujitsu. Some of that is to transition away from Fujitsu contracts, where we have to make sure there is a smooth transition process. I must remind and urge noble Lords that there are, as yet, no criminal proceedings against Fujitsu, and until then, we have to operate in a quasi-judicial way with regards to our approach to the contracts.