Fujitsu has secured a £61 million contract to manage HMRC's self-assessment tax systems despite its involvement in the Post Office's Horizon scandal. The Japanese technology firm has reportedly earned more than £500 million in taxpayer-funded contracts since the scandal resurfaced in the public eye.

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The £61 million HMRC deal and the £500 million windfall

Fujitsu has secured a £61 million contract to manage the HMRC system responsible for processing millions of self-assessment tax returns. According to the report, this deal is part of a much larger trend of revenue for the Japanese firm, which has raked in more than £500 million in taxpayer-funded contracts since the ITV drama Mr Bates vs The Post Office brought the scandal back into the spotlight. This influx of capital comes even as the firm has yet to pay compensation to the sub-postmasters affected by the Horizon software errors. These errors, which occurred between 1999 and 2015, led to what is widely considered Britain's largest miscarriage of justice, as hundreds of individuals were wroongly prosecuted for theft and fraud based on faulty data.

Entry into the £15 billion Digital Outcomes and Specialists 7 framework

The company's ability to secure future work was bolstered last week when it was added to the Digital Outcomes and Specialists 7 framework. As the source notes, this specific procurement list provides access to nearly £15 billion of potential Government contracts. While Fujitsu has previously stated it would refrain from bidding for new work until the Horizon inquiry releases its final report in September, its inclusion in this massive framework suggests a continued presence in the public sector pipeline. This framework allows the government to source specialized digital services, but its inclusion of Fujitsu ensures the firm remains a primary candidate for high-value technological infrastructure projects.

Chancellor John Healey's 'buy British' vow vs. japanese suppliers

The continued reliance on Japanese technology providers creates a tension with the current administration's economic goals. New Chancellor John Healey has publicly vowed to "buy British" to support domestic jobs, yet Fujitsu remains a dominant player in UK government IT infrastructure. This contradiction highlights a potential disconnect between the government's procurement rhetoric and the reality of its existing supplier lists. Liam Byrne, chair of the business and trade committee, noted that the failures of the Horizon system were compounded by Fujitsu's corporate conduct, suggesting that the current procurement model may be fundamentally broken.

What is the truth behind Fujitsu's 'voluntary restrictions'?

Despite the company's claims, several critical points remain unaddressed. First, the source does not clarify how Fujitsu can be added to a new procurement list while simultaneously claiming it will not bid for new business. Second, there is no confirmation of when the "ongoing" compensation conversations with the government will result in actual payments to sub-postmasters. Finally, it remains unclear how the Cabinet Office's adherence to "relevant procurement regulations" accounts for the reputational damage caused by the Horizon miscarriage of justice. Former sub-postmaster Lee Castleton, who faced bankruptcy following his prosecution, has called for the government to stop awarding these contracts until all victims have reached a resolution.