Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, in which financial year the £58 million legal settlement in relation to the Horizon IT case will be accounted for in Post Office Ltd’s Annual Report and Accounts.

Post Office responded to the BEIS Select Committee Inquiry in June 2020 regarding costs of the group litigation and its consequences and estimated that, since 2016/17 Post Office has incurred costs of approximately £43m in relation to the litigation (which began in April 2016). This figure includes expenditure on legal and consultancy fees connected with the litigation and other costs indirectly related to the litigation, but excludes the settlement amount of £57.75m which was ultimately paid by Post Office in December 2019.

The settlement in relation to the Horizon IT case agreed in December 2019 will be included in Post Office’s annual report and accounts for the financial year 2019/20, as will spend on litigation costs for financial year 2019/20.

Under the Companies Act, firms have 9 months after the relevant financial year ends to file their accounts, meaning the end of December 2020 for 2019/20 accounts. For accounts from the 2019/20 financial year Companies House has provided an optional three-month extension of this deadline due to Covid-19. In recent years, the Post Office has laid its report and accounts before Parliament between September and December.