Former postal affairs minister Sir Ed Davey has said that he would have “acted differently” if the “Post Office had told the truth”. He also suggested that he was repeatedly lied to by Post Office senior executives including former boss Paula Vennells and David Smith, former managing director.
In his witness statement to the Horizon IT inquiry given today (18), Sir Davey said that he was "seriously misled by the Post Office".
"With all issues in such a busy portfolio, you had to be able to rely on the advice of civil servants, and you were not in a position to dig into the detail of every question that came across your desk. As I have stated publicly, I believe I was seriously misled by the Post Office. I do not know if one or more civil servants misled me during my time as a minister, or if they were themselves misled by the Post Office. I hope the inquiry can shed light on this.
"However, if I had known then what we all know now - if the Post Office had told the truth - of course I would have acted differently," he said.
Asked about this by Jason Beers KC, counsel to the inquiry, Davey said, "Yes, I now know I was being lied to. I follow this inquiry, and it’s pretty clear what they told my officials was not true."
Asked which executives had lied to him and his officials, Davey said, "The senior executives I dealt with were David Smith and then Paula Vennells. There may have been one or two others…. And they were the ones giving the information to my officials and to me. So they were the people passing information which was untrue."
Smith was the Post Office’s managing director between April and December 2010, and Vennells was chief executive of the Post Office from 2012 to 2019.
Sir Davey also apologised to Sir Alan Bates for declining a meeting with him in May 2010. On being suggested that he only agreed to meet Sir Bates after the mainstream media started to pick up the story, Davey denied this was the case, saying had been insisting that he decided to meet Bates in the summer before he learnt that Channel 4 were planning to run a news story.
It also appeared in the inquiry that Sir Davey repeatedly evaded questions by Priti Patel, the former home secretary, over the effectiveness of the Horizon system in 2010.
The Post Office Inquiry was shown a series of four parliamentary questions Dame Priti submitted to the then junior minister, which asked about a review of the IT system and an estimate of the cost of Horizon errors. In response to the majority of the queries, Sir Ed forwarded responsibility onto David Smith, the former Post Office managing director, under the claim that the company’s operational running lay with the courier itself.
On one occasion in July 2010, Dame Priti asked how many times ministers had held discussions with Post Office Ltd over the faulty Horizon system in the last five years.
In a draft response shown to the inquiry, Sir Davey replied, “The Horizon system is an operational responsibility of the company and I have had no such discussions… I am therefore unable to provide the information requested.”
Sir Ed Davey has said he only became aware of the wrongful convictions of 900 sub-postmasters because of the Post Office Inquiry. In his witness statement, the Liberal Democrat leader said he was not aware that the Post Office or Royal Mail Group had obtained convictions against any sub-postmasters.
Asked by lead counsel Jason Beer KC when he did then become aware, he said, “I’m trying to think if it was during this inquiry procedure, I think it probably was. I certainly did not realise it when I was a minister.”
A file photo of Buns and Buns restaurant in Covent Garden Market, London. Sectors like accommodation and food services are expected to be hit hard by higher living wage and employer national insurance contributions in April.
Britain's economy unexpectedly shrank in January, official data showed Friday, piling more pressure on the Labour government ahead of its Spring Statement on the economy.
Gross domestic product contracted 0.1 per cent in the month after GDP rose 0.4 per cent in December, the Office for National Statistics (ONS) said in a statement.
Chancellor Rachel Reeves is expected to make billions of pounds of spending cuts, including to welfare, in the government's Spring Statement on March 26, a follow-up to her inaugural budget last October, as public finances struggle under high inflation and borrowing.
"The world has changed and across the globe we are feeling the consequences," Reeves said in a statement responding to the data.
The data provides a fresh blow to the government and prime minister Keir Starmer, who has put growing the UK economy at the top of his mission since Labour won a general election in July.
"The fall in January was driven by a notable slowdown in manufacturing, with oil and gas extraction and construction also having weak months," noted Liz McKeown, director of economics at the ONS.
"However, services continued to grow in January led by a strong month for retail, especially food stores, as people ate and drank at home more," she added.
Nicholas Hyett, investment manager, Wealth Club noted that the dramatic slowdown in sectors like accommodation and food services which expect to be hit hard by higher living wage and employer national insurance contributions in April, is “really worrying.”
“Tariffs and increased labour costs were more worries than reality in January, the month covered by these numbers. Those worries will soon be transforming into realities,” Hyett said.
“That leaves plenty of room for economic growth to deteriorate further, with far fewer catalysts to spark an economic recovery. We could be at the start of a long slow slide into recession.”
US president Donald Trump on Thursday threatened to slap a 200 per cent tariff on wine, cognac and other alcohol imports from Europe, opening a new front in a global trade war that has roiled financial markets and raised recession fears.
Stocks fell on the news, as investors worried that Trump would enact stiffer trade barriers around the world's largest consumer market. The S&P 500 finished the day more than 10 per cent below its record high reached last month, confirming the benchmark index for US stocks is in a correction.
Trump's threat came in response to a European Union plan to impose tariffs on American whiskey and other products next month - which itself is a reaction to Trump's 25 per cent tariffs on steel and aluminum imports that took effect on Wednesday. The European Commission had no immediate comment on the move.
Canada, a neighbor and close ally that is the biggest aluminum provider to the US, has also announced countermeasures to Trump's metals tariffs and has taken the dispute to the World Trade Organisation. Talks between US and Canadian officials on Thursday failed to produce a breakthrough.
Trump has threatened to impose an array of trade penalties since returning to the White House in January, though he has postponed action on many of them. At an Oval Office meeting with NATO secretary general Mark Rutte later on Thursday, he said he would not back off from reciprocal tariffs he has vowed to impose on all trading partners on April 2.
"We've been ripped off for years, and we're not going to be ripped off," he said.
Alcohol is shaping up to be a key friction point in the brewing trade war.
Some Canadian retailers have pulled American bourbon from their shelves as relations between the two countries have frayed and Trump has threatened to annex that country.
US commerce secretary Howard Lutnick met with Canadian finance minister Dominic LeBlanc and Ontario premier Doug Ford on Thursday to discuss the metals tariffs, as well as economic and national security issues, the Canadian officials said.
Following his meeting with Lutnick, Ford told reporters in Washington: "We had a very, very productive meeting ... we feel the temperature is being lowered, and we've also agreed that we're going to have another meeting next week."
LeBlanc said Canadian officials have made clear that they will not reopen dairy provisions of the US-Mexico-Canada trade agreement, a demand repeatedly made by Trump, who has railed against Canada's high tariffs on US dairy products. But he said the issue was not discussed with Lutnick on Thursday.
He said it was not particularly helpful to have the tariffs in place in the run up to a review of USMCA.
Many of the EU's proposed countermeasures, worth €26 billion (£21bn), would apply to products with little more than symbolic value, such as dental floss and bathrobes.
But the proposed 50 per cent duty on US bourbon would be a significant hit for the industry, which has seen exports grow steadily since the United States lifted tariffs Trump imposed during his 2017-2021 term in office.
The EU accounted for roughly 40 per cent of all spirits exports in 2023, according to the Distilled Spirits Council of the United States, a trade group.
Likewise, the United States accounts for 31 per cent of EU wine and spirits exports, according to Eurostat.
Trump's proposed 200 per cent tax on European alcohol would create further headwinds for producers like Pernod Ricard, which has already cut its sales outlook due to Chinese duties imposed last year.
Industry calls for more toasts, fewer tariffs
Industry officials on both sides of the Atlantic urged their leaders to de-escalate.
"This cycle of tit-for-tat retaliation must end now!" said spiritsEurope, an industry trade group.
Trump says tariffs are needed to revitalise US industries shrunken after decades of globalisation, and he has stacked his administration with officials who agree with those views.
Treasury secretary Scott Bessent said he was not worried about Wall Street volatility because the Trump administration is focused on a longer-term transformation of the U.S. economy.
He warned that the EU has more to lose in a trade war, as it relies more on exports to the United States.
"I would counsel these government leaders that they are on the losing side of this argument economically," he said on CNBC.
Trump's barrage of threats has spooked investors, businesses and consumers. Producers of jets, coffee, clothing, autos and packaged foods are among the many businesses scrambling to assess their operations as Trump's actions threaten international supply chains.
Even Tesla, owned by Trump adviser Elon Musk, argued in a letter to US trade officials that the trade war could make it a target for retaliatory tariffs against the US.
"As a US manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices," the electric automaker said in a letter dated Tuesday.
Some economists say the uncertainty threatens the health of the U.S. economy and raises the risk of recession. A Reuters/Ipsos poll released on Wednesday found that 70 per cent of Americans expect Trump's tariffs to make regular purchases more expensive.
Trump said his alcohol tariffs would help domestic producers. But US importers and distributors said it would lead to lost sales, layoffs and shuttered businesses.
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Products containing corrosive substances sold to minors by Gloucestershire shops
An undercover operation by Gloucestershire Trading Standards has found most shops in the county selling products containing corrosive substances to underage buyers.
In total, 10 stores were visited and eight made sales to underage volunteers.
The test purchases were carried out by Trading Standards, with the support of police cadets, in February. The volunteers visited stores across Gloucester, Cheltenham, Stroud, the Forest of Dean and Tewkesbury.
Eight different businesses sold a product containing corrosive substances to a young person under 18, without any checks on their age or requests for identification. The products sold included brick and patio cleaner, plughole unblocker and caustic soda drain unblocker.
Gloucestershire Trading Standards said it will be contacting the shops that failed the test to inform them of the sale and offer advice on their legal obligations. If these businesses do not heed this advice and evidence of selling to minors is found in the future, then Trading Standards have warned that more formal action could be taken which could include prosecution.
The Offensive Weapons Act 2019 makes it an offence to sell certain products which have a high percentage of corrosive chemicals to under 18s. Products which may have a high percentage of chemicals such as caustic soda, drain cleaners/unblockers and patio cleaners contain such chemicals, which can be dangerous if not used correctly.
“It’s disappointing to see that a number of retailers in the county have sold products containing corrosive substances to underage buyers,” Cllr Dave Norman, cabinet member for trading standards at Gloucestershire County Council, said.
“It’s important they seek advice and ensure that age-restricted goods are not sold to young people. Our Trading Standards team will be offering relevant advice to these businesses.”
If a business is unsure of their obligations, then they can find advice on the Trading Standards website.
Paul will join the NewstrAid team from 17 March and will take over from Tom Rodger, who is retiring at the end of the month.
“We are delighted to welcome Paul Bacon to the team. He has more than 20 years’ experience in the industry and will bring with him a wealth of knowledge to this important role,” said Neil Jagger, CEO for NewstrAid.
Paul most recently worked for Harmsworth Media as Key Account Manager at The i Paper and has previously worked in various sales and marketing roles for the Independent and The i Paper as well as working in distribution for wholesalers including Smiths News.
Neil Jagger added, “We are very sad to say goodbye to Tom Rodger and we know he will leave big shoes to fill, however I am confident that Paul will prove a great addition to the team and will continue the fantastic work that Tom has undertaken for the last six years.”
NewstrAid provides financial help, emotional support and practical advice to the UKs newstrade and in 2024 helped more than 1,500 industry colleagues who were facing challenging times.
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Brits pull out nearly £80bn from LINK ATMs in 2024
The UK’s transition away from cash continues to accelerate, nearly five years after the COVID-19 pandemic, according to a report released today by LINK, the UK's cash access and ATM network.
While the trend towards a low-cash society is clear, the pace of this shift varies significantly across the country, indicating a complex and evolving payment landscape.
Over the past 20 years, there has been a shift away from cash with more customers choosing to pay for things digitally or with contactless cards. According to the most recent industry statistics, cash represented 12 per cent of all payments, down from around one-quarter in 2020, and 60 per cent back in 2008.
LINK’s latest analysis shows that the total value of cash withdrawn from cash machines in every single constituency of the UK has seen a significant fall since COVID. In 2019, £116 billion was withdrawn from ATMs compared to £80bn in 2024, a 31 per cent fall.
This means UK banking customers are withdrawing £100 million less from ATMs every day compared to before the pandemic.
As customers use less cash, total ATM transaction numbers, which includes balance enquires, have also fallen significantly. In 2019, there were 1.73 billion transactions compared to 921 million in 2024, a 47 per cent drop.
However, LINK data shows that the average withdrawal value has increased from £65 to £85 over the same time period. Consumers are visiting ATMs less, but when they do they take out more cash.
Assessing the level of decline in transactions across the parliamentary constituencies reveals significant geographic differences. Over the five years, we can see which parts of the country have moved away from cash more quickly and slowly. The data shows:
The total cash withdrawn from ATMs has fallen in every single constituency across the UK with the average constituency withdrawing £1m less every week.
The fastest move away from cash has been in city centres and more affluent constituencies with Bristol Central, Edinburgh North & Leith and Westminster seeing the biggest shift
Areas with higher levels of deprivation and digital exclusion are moving away from cash more slowly
The top 50 constituencies where people have moved away from cash the fastest are dominated by English and Scottish constituencies
Northern Ireland is the ‘cash heaviest’ part of the UK with the average adult still withdrawing £2,274 in 2024, compared to the national average of £1,424.
Yet cash is still critical to every high street. Even in the quietest and most remote constituencies, over £400,000 was still withdrawn from LINK ATMs every month last year. In total, £79.5bn was withdrawn across the country, and surveys show around five million people still depend on cash.
LINK runs a national financial inclusion programme ensuring that, despite changing consumer behaviour, people can still access cash for free. Some 93.6 per cent of people live within one mile of access to cash.
“COVID changed how we live, how we work, and for many people, how we manage our cash,” John Howells, LINK chief executive, commented.
“Cash use remains popular – we still withdrew £250m a day in 2024. The fact that areas which are more deprived are moving away from cash more slowly is a timely reminder that we cannot afford to leave anyone behind, and that we need to focus more on digital inclusion as part of how technology is rolled out across the UK.”
20 areas with fastest declines in ATM withdrawals*
20 areas with slowest declines in ATM withdrawals*
Constituency
Decline
Constituency
Decline
Bristol Central
-67%
Weald of Kent
-22%
Edinburgh North and Leith
-67%
Leicester East
-27%
Cities of London and Westminster
-66%
West Tyrone
-28%
Edinburgh South
-65%
Knowsley
-28%
Holborn and St Pancras
-65%
Bradford South
-29%
Edinburgh East and Musselburgh
-64%
Mid Ulster
-29%
Glasgow North
-64%
Kingston upon Hull East
-30%
Sheffield Central
-64%
Birmingham Yardley
-30%
York Central
-64%
Wolverhampton South East
-31%
Leeds Central and Headingley
-63%
Belfast West
-31%
Oxford West and Abingdon
-62%
Hartlepool
-31%
Islington South and Finsbury
-61%
Bradford East
-32%
Edinburgh West
-61%
Merthyr Tydfil and Aberdare
-32%
Wimbledon
-61%
Middlesbrough South and East Cleveland
-32%
Brighton Pavilion
-61%
Easington
-32%
Winchester
-60%
Fermanagh and South Tyrone
-32%
Bath
-60%
Birmingham Perry Barr
-33%
Edinburgh South West
-60%
Birmingham Hodge Hill and Solihull North
-33%
Cardiff South and Penarth
-60%
Blaenau Gwent and Rhymney
-33%
Nottingham East
-60%
North Durham
-33%
* Volume of cash withdrawals from LINK ATMs, 2019 vs. 2024. ATMs within the 2024 constituency boundaries used for comparison in both 2019 and 2024.