Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Acknowledged
Letter of Support is a commitment, not a blank cheque or financial guarantee.
Conclusion
We were concerned that the Letter of Support effectively acts as the Post Office having a “blank cheque” from the Department, and asked what conditions were attached to it.32 The Department told us that there is a rolling working capital requirement that the Department manage. The Department explained it involves UK Government Investments (UKGI) to provide assurance around the financial structures of the Post Office. In a subsequent letter from the Department, it confirmed it will provide financial support to the Post Office to enable it to meet its liabilities as they fall due for a period of no less than 15 months from December 2024, but is subject to receiving HM Treasury approval and the application of the Subsidy Control Act 2022. As such it reaffirms the Department’s commitment to support the Post Office but deliberately falls short of being a financial guarantee.33
Government Response Summary
The government acknowledges the committee's conclusion regarding concerns about the Letter of Support's perceived 'blank cheque' nature and commits to writing to the Committee in Autumn 2025 with an update following the Treasury Minute.
Government Response
Acknowledged
HM Government
Acknowledged
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 3.2 The department will write to the Committee in Autumn 2025, following the publication of this Treasury Minute.