Taxpayers to Bear £67m Cost for Extended Contract with Fujitsu Amid Horizon Scandal

The recent decision by His Majesty's Revenue and Customs (HMRC) to extend its contract with Fujitsu has sparked controversy, particularly considering Fujitsu's role in the Horizon IT scandal that led to wrongful accusations against numerous subpostmasters. This one-year extension of the Trader Support Service (TSS) is set to cost taxpayers £66.8 million and has raised eyebrows among campaigners who argue that the government's decision sends the wrong message about accountability for past unethical behavior.

Lord Arbuthnot, who has advocated for those affected by the Horizon scandal, expressed deep concern over the government's choice to continue business with Fujitsu. He highlighted multiple issues, including the message it sends about the government's commitment to ethical standards, the troubling dependence on Fujitsu for essential services, and the potential inadequacy of the firm's capabilities for the current contract. He questioned why the government had not begun the search for alternative service providers sooner.

In defense of the extension, HMRC stated it was necessary to allow time for stabilization as new post-Brexit trading rules under the Windsor Framework come into effect. They have promised to initiate a procurement process in the near future to find a new contractor. The Trader Support Service was established in January 2020 to assist businesses in adapting to the complexities of the Northern Ireland Protocol, and since then, the cost of the contract has increased significantly due to multiple extensions.

Critics have pointed out the extensive costs incurred by businesses as they deal with Brexit-related red tape. Liberal Democrat EU spokesperson James MacCleary criticized the government's reliance on contracts to manage the fallout from Brexit and suggested a need for negotiations to establish a new customs union with the EU, rather than continuing to fund bureaucratic solutions. Dr. Mike Galsworthy from the European Movement also remarked that the contract represents a "bureaucracy-to-alleviate-bureaucracy" situation, arguing that it diverts funds away from potential economic benefits in favor of addressing the complications created by the Brexit transition.

As discussions regarding the UK’s post-Brexit relationship with the EU continue, there are further inquiries about the direction taken by the current government under Prime Minister Rishi Sunak and Labour leader Sir Keir Starmer. Despite ongoing skepticism about the effectiveness of the government's strategies, officials maintain that the TSS is essential for supporting a significant number of traders affected by the new customs arrangement. Fujitsu, meanwhile, has committed to adhering to voluntary measures regarding new contracts while the Post Office Inquiry is active, expressing remorse to those affected by the past scandal.