Kemi Badenoch has claimed government red tape delayed compensation payouts to Post Office scandal victims as she blasted bureaucracy in the Civil Service.
Speaking at the Horizon scandal inquiry, the former business secretary said it was “extremely disappointing” it took the ITV drama Mr Bates vs the Post Office to force the Treasury to accelerate redress for those affected.
The Leader of the Opposition expanded on her previous criticisms of how the state operates, saying there were “too many checks and balances getting in the way” of reimbursing sub-postmasters, which left her feeling “frustrated”.
The inquiry also produced evidence that appeared to clear Mrs Badenoch of accusations by the former Post Office chairman Henry Staunton – whom she sacked – that he was told to stall payouts until after the General Election.
The probe went through documents showing Mrs Badenoch asking then-chancellor Jeremy Hunt for permission and funds to offer £100,000 to every claim.
Mr Hunt rejected the request, made about seven months after she was appointed business secretary. The Treasury’s position changed following the public outcry sparked by the ITV docudrama.
Mrs Badenoch explained how she tried to skip the usual legal red tape in order to expedite payouts, including threatening to issue a Ministerial Direction.
The Tory leader, who pledged during the recent leadership contest to conduct a wholesale review of how the British state operates, joked that she is “not one of life’s natural bureaucrats” and frequently asked officials how to speed up compensation payouts.
She told the inquiry: “We need to change the way that we do things in government. There is far too much going round and round in circles and avoiding taking serious, real decisions because everybody is worried about getting into trouble later.
“This is something which I tend not to worry about. Maybe I should do but I do trust my judgement.”
Speaking before Mrs Badenoch, current Business Secretary Jonathan Reynolds argued there had been “insufficient accountability” in the past. He said he takes full responsibility for the continuing rollout of the payouts scheme.
He claimed that since the General Election there has been a “significant increase” in the pace of payouts.
While he called for “very significant” changes to the Post Office’s business model going forward, he rejected claims the firm has no future.
Mr Reynolds said he “still wants a Post Office” and praised the services they provide to communities.
He earmarked the crucial role the Post Office can continue to play in towns where bank branches have closed.
