Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the propriety of awarding the Trader Support Service contract to a company that is under public scrutiny as part of the Post Office Horizon scandal.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

As a public contracting authority, HMRC follow government procurement rules when awarding contracts, ensuring value for money for taxpayers. The Trader Support Services contract was procured in compliance with the Public Contracts Regulations 2015. Existing service delivery is managed robustly by contract management teams in compliance with this legislation and to ensure that the requirements of UK traders are met under the Windsor Framework. HMRC keep the performance and conduct of all their suppliers under review.

Question to the HM Treasury:

To ask His Majesty's Government whether alternative suppliers are being considered in the re-tendering of the Trader Support Service, and whether they will take into account the risk profile of Fujitsu in those considerations.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

HMRC follow standard government procurement rules and keep the performance and conduct of all their suppliers under review. All of HMRC’s contract opportunities are publicly available through Contracts Finder and Find-a-Tender Service. Contract opportunities are available to any economic operator that is able to meet the requirements of the procurement in compliance with the Public Contracts Regulations 2015 or The Procurement Regulations 2024, as applicable.

Question to the Cabinet Office:

To ask His Majesty's Government what guidance they have issued to departments about the ethical and reputational risks of awarding public contracts to suppliers, such as Fujitsu, that are subject to public sector inquiries.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

I refer the noble Lord to the answer given to question HL8487 on 30th June.

Question to the Cabinet Office:

To ask His Majesty's Government what consideration they have given to applying exclusion clauses under public procurement regulations to prevent Fujitsu from bidding for new contracts until the Post Office Horizon IT Inquiry concludes.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

In January 2024, Fujitsu said it would withdraw from bidding for contracts with new Government customers until the Post Office Horizon inquiry concludes – and it would only bid for work with existing Government customers where it already has an existing customer relationship with them, or where there is an agreed need for Fujitsu’s skills and capabilities. Fujitsu's bid approach is detailed in correspondence deposited in the Houses of Parliament libraries on 4 March 2024 (DEP2024-0247).

Details of public sector awards are publicly available on Contracts Finder & Find a Tender services. In addition to extensions available under Fujitsu’s existing contracts, Contracts Finder and Find a Tender provide details of twelve new Fujitsu contracts since July 2024. These awards are compliant with Fujitsu's commitment not to bid for work with new customers. The majority are for services already provided by Fujitsu and were put in place to ensure continuity of services whilst competitive procurements are being set up.

The Government is determined to hold those responsible for the Horizon scandal to account, and will continue to make rapid progress on compensation and redress. Fujitsu’s role in Horizon is one of the issues which is being reviewed by Sir Wyn Williams’s statutory inquiry. The Cabinet Office has been monitoring the situation, in addition to continuing its usual monitoring of Fujitsu as a strategic supplier. The Government will carefully consider volume 1 of the report, to be published on 8 July, which is limited in scope. Once the inquiry establishes the full facts, we will review its final report and consider any further action, as appropriate.

Question to the Cabinet Office:

To ask His Majesty's Government what plans they have to review Fujitsu’s suitability to continue as a supplier for public sector contracts.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

In January 2024, Fujitsu said it would withdraw from bidding for contracts with new Government customers until the Post Office Horizon inquiry concludes – and it would only bid for work with existing Government customers where it already has an existing customer relationship with them, or where there is an agreed need for Fujitsu’s skills and capabilities. Fujitsu's bid approach is detailed in correspondence deposited in the Houses of Parliament libraries on 4 March 2024 (DEP2024-0247).

Details of public sector awards are publicly available on Contracts Finder & Find a Tender services. In addition to extensions available under Fujitsu’s existing contracts, Contracts Finder and Find a Tender provide details of twelve new Fujitsu contracts since July 2024. These awards are compliant with Fujitsu's commitment not to bid for work with new customers. The majority are for services already provided by Fujitsu and were put in place to ensure continuity of services whilst competitive procurements are being set up.

The Government is determined to hold those responsible for the Horizon scandal to account, and will continue to make rapid progress on compensation and redress. Fujitsu’s role in Horizon is one of the issues which is being reviewed by Sir Wyn Williams’s statutory inquiry. The Cabinet Office has been monitoring the situation, in addition to continuing its usual monitoring of Fujitsu as a strategic supplier. The Government will carefully consider volume 1 of the report, to be published on 8 July, which is limited in scope. Once the inquiry establishes the full facts, we will review its final report and consider any further action, as appropriate.

Question to the Cabinet Office:

To ask His Majesty's Government what is the total value of contracts that they have awarded to Fujitsu over the past 12 months.

Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)

In January 2024, Fujitsu said it would withdraw from bidding for contracts with new Government customers until the Post Office Horizon inquiry concludes – and it would only bid for work with existing Government customers where it already has an existing customer relationship with them, or where there is an agreed need for Fujitsu’s skills and capabilities. Fujitsu's bid approach is detailed in correspondence deposited in the Houses of Parliament libraries on 4 March 2024 (DEP2024-0247).

Details of public sector awards are publicly available on Contracts Finder & Find a Tender services. In addition to extensions available under Fujitsu’s existing contracts, Contracts Finder and Find a Tender provide details of twelve new Fujitsu contracts since July 2024. These awards are compliant with Fujitsu's commitment not to bid for work with new customers. The majority are for services already provided by Fujitsu and were put in place to ensure continuity of services whilst competitive procurements are being set up.

The Government is determined to hold those responsible for the Horizon scandal to account, and will continue to make rapid progress on compensation and redress. Fujitsu’s role in Horizon is one of the issues which is being reviewed by Sir Wyn Williams’s statutory inquiry. The Cabinet Office has been monitoring the situation, in addition to continuing its usual monitoring of Fujitsu as a strategic supplier. The Government will carefully consider volume 1 of the report, to be published on 8 July, which is limited in scope. Once the inquiry establishes the full facts, we will review its final report and consider any further action, as appropriate.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what consideration they have given to the development of sovereign digital capabilities when procuring government digital services.

Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)

The Government’s blueprint for modern digital government published in January sets out a coordination approach to strengthening procurement of digital capabilities across the public sector, making use of governments' scale to unlock greater value and procure in a way that drives creation of responsible, inclusive and secure technologies.

While each department is responsible for creation of their own requirements and making procurement decisions based on their specific needs, the Government Digital Service will continue to support departments through guidance such as the Technology Code of Practice.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what priority they will give to the development of sovereign digital capabilities, excluding artificial intelligence, under their new industrial strategy.

Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)

The Government’s Modern Industrial Strategy commits to supporting the digital and technologies sector as a high growth industry. As part of the Digital and Technologies Sector Plan we have prioritised six frontier technologies with the greatest growth potential and strategic importance. The Sector Plan commits to grow domestic capabilities in these technologies, including through programmes to boost our semiconductor chip design capability, targeted R&D investment in advanced connectivity technologies and a ten-year funding commitment for the National Quantum Computing Centre. We will develop a domestic skills base in these technologies through a new £187 million TechFirst programme to grow the UK’s digital talent pipeline.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the implications for their use of Microsoft products of Microsoft's decision to suspend the email account of the Prosecutor of the International Criminal Court.

Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)

We are aware of media reports that Microsoft may have blocked the email account of Karim Khan, Chief Prosecutor of the International Criminal Court (ICC), in compliance with US sanctions imposed by the Trump administration. It is our understanding that Microsoft has strongly denied this action, it would therefore be inappropriate for us to comment further at this point in time, other than to note that we constantly keep our commercial relationships under review.

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