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More than £3.4 billion of Fujitsu contracts active with Treasury-affiliated organisations since 2019

10 February 2024

New data published by the Treasury Committee shows public organisations affiliated with the Treasury have held more than £3.4 billion worth of contracts with Fujitsu since 2019. This is the year of the landmark High Court ruling on the convictions of sub-postmasters - determining that the Horizon software was at fault for the misreported losses at Post Office branches.

Just over £2 billion worth of contracts were agreed before the ruling and continued into the period following 2019, while around £1.4 billion were awarded after 2019.

As well as £2.8 billion worth of contracts awarded by HMRC, both the Financial Conduct Authority (FCA) and Bank of England have spent considerable sums with Fujitsu Services Ltd or Fujitsu Global-owned entities.

Since 2007, the FCA agreed contracts worth around £630 million which continued to be active until after 2019, with the main contract in wind down from 2018.

The Bank of England confirmed the institution had one contract in the relevant period, worth £417,000.

As it stands today (Friday 9 February 2024), HMRC holds around £1.4 billion of active contracts with Fujitsu while the FCA maintains six contracts worth a combined total of just over £9 million.

The only correspondence with the Committee which related to possible termination of Fujitsu contracts was supplied by the FCA, which confirmed that they considered ending a contract with the company due to poor performance but decided to retain their services.

Chair's comment

Chair of the Treasury Committee, Harriett Baldwin, said:

“We have unearthed some information which, I believe, goes beyond what is known by the Cabinet Office. I hope this will aid transparency and scrutiny around the role of Fujitsu as a public sector supplier.

As set out in some of the letters we received, Fujitsu was often accessed through pre-approved government frameworks run by the Crown Commercial Service.

The inquiry will run its course and it is welcome news that Fujitsu have agreed to pay towards the compensation that wrongly convicted postmasters are receiving.”

Further information

Image credit: UK Parliament/Tyler Allicock