The government is about to release a Green Paper aimed at shaping the future of the Post Office, following the fallout from the Horizon IT scandal.
Gareth Thomas, the small business minister in charge, emphasized that this document will focus on what postmasters, customers, and communities want from a modern Post Office network. It’s also going to address the need for a cultural shift within the Post Office, which many believe contributed to the Horizon crisis. Thomas pointed out that Labour made a commitment to strengthen the Post Office network, and now that they’re in power, he’s detailing the next steps.
The Green Paper will serve as a way for the government to gather insights from a variety of stakeholders, including the public and lawmakers, on how to move forward. In a statement to the House of Commons, Thomas remarked, “While we continue to address the past, now is also the time to consider the future of the Post Office. The UK’s Post Office branch network is crucial for our economy, supporting high streets and businesses, and is part of the government’s plan for economic growth.” He stressed the importance of public input in determining the Post Office’s path forward and confirmed that this Green Paper would be published in the first half of 2025.
To tackle the complexities facing the Post Office, the Department for Business and Trade has brought in external consultants. The Boston Consulting Group is set to assist in this review. When questioned during the Horizon inquiry, Thomas spoke about the urgent need to change the culture within the Post Office. He reassured attendees that the Green Paper aims to include a diverse range of opinions on how to foster improvements.
Charles Donald, CEO of UK Government Investments, joined Thomas at the inquiry, where he was asked if the Post Office could ever be self-sufficient without relying on public funds. He acknowledged that achieving self-sufficiency would require budget cuts and possible downsizing. “It’s a worthy goal, but given the current structure, it’s challenging,” Donald acknowledged, noting the significant obligations of the branch network and its related costs.
Reducing the branch network has always sparked debate. Donald indicated that the Post Office’s board heavily depends on government funding to keep operating. Former Post Office minister Kevin Hollinrake also weighed in on the challenges of cutting costs during his inquiry session. He likened discussions with the former CEO about trimming central expenses to “drawing teeth,” despite the fact that 143 managers and executives earned more than £100,000 annually.
The Horizon IT Inquiry is now in its seventh and final phase. This phase focuses on the Post Office’s current practices and aims to recommend future directions. The scandal first came to light in 2009, when Computer Weekly highlighted the experiences of subpostmasters affected by the Horizon accounting system. This crisis led to one of the most significant miscarriages of justice in British history.