Committee publication · Correspondence · 23 July 2025

Letter from the Chief Operating Officer relating to the July Update on the 2024-25 Department for Business and Trade Annual Report and Account, 22 July 2025

Inquiry: The work of the Department for Business and Trade

Summary

Letter from the Department for Business and Trade Chief Operating Officer updating the Business and Trade Committee on progress toward the September 2025 publication of the 2024-25 Annual Report and Accounts. The department confirms audit progress is on track, but flags significant risk from Post Office redress scheme modelling requiring revision following extended mailouts and settlement updates.

Key findings

All versions of the 2024-25 ARA provided to NAO on time; latest version (14 July) represents substantially complete picture of department activities and balances
Post Office redress provision balances pose significant risk to September publication: Horizon Shortfall Scheme mailout extended to ~10,000 additional potential claimants; Horizon Convictions Redress Scheme settlement figures revised following Overturned Convictions scheme activity
Department and NAO remain committed to September laying date despite challenging modelling work required
Other audit risks including British Business Banks investments considered resolvable without impacting September publication timeline

Tone

Procedural

Topics

public-financeauditredress-schemespost-office

Key actors

Tara Smith, Liam Byrne MP, Department for Business and Trade, National Audit Office, Post Office Limited, Audit and Risk Assurance Committee

Notable line

“Significant risks have arisen in relation to the modelling of some redress schemes, but the Department and the NAO are working well together to resolve these matters.”

Key Quotes

“The 2024-25 ARA production and its audit are progressing well and in line with the agreed timetables.”
— Tara Smith · Reporting on progress of Annual Report and Accounts audit

“A significant risk to the delivery of a September publication of the 2024-25 account re- lates to resolving issues that have arisen regarding the Post Office redress provision balances.”
— Tara Smith · Identifying key audit risk

“For HSS, the mailout cohort and expected claimants have been revised as the Post Office Limited has extended its mailout to another circa 10,000 potential claimants.”
— Tara Smith · Detailing Horizon Shortfall Scheme changes

“… the Department and the NAO remain committed to a September laying date”
— Tara Smith · Confirming commitment to publication timeline despite challenges

View original document →

Source · parliament.uk record ↗