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Committee publication · Correspondence · 3 February 2026

Letter to Ernst & Young relating to Fujitsu account provisions for Horizon redress, 12 January 2026

From: Business and Trade Committee

Inquiry: Post Office Horizon scandal: Justice for sub-postmasters

Summary

The Business and Trade Committee Chair writes to Ernst & Young seeking clarification on accounting advice provided to Fujitsu regarding provisions for the £1.8 billion Horizon IT scandal redress bill. The letter questions whether EY advised Fujitsu that no provision was necessary, and whether this aligns with UK accounting standards for probable, material liabilities.

Key findings

  • Fujitsu Director Paul Patterson stated in evidence (6 January 2026) that Ernst & Young advised Fujitsu it was not required to make a provision in its accounts for the anticipated £1.8 billion Horizon redress commitment
  • The Committee seeks confirmation of whether EY provided this advice and whether any provision was actually made in Fujitsu's accounts
  • The Committee is examining whether EY's advice aligns with UK accounting standards requiring provisions for probable, material liabilities arising from past events
  • The inquiry concerns director duties in relation to Post Office Horizon settlement provisions

Tone

Procedural

Topics

accounting-standardscorporate-governancepost-office-horizon-scandalfinancial-provisions

Key actors

Business and Trade Committee, Ernst & Young, Fujitsu, Paul Patterson, Post Office

Notable line

“Ernst & Young had advised Fujitsu that it was not necessary to make a provision in its accounts for its stated commitment to contribute to the anticipated £1.8 billion Horizon redress bill.”

Key Quotes

“During his evidence on 6 January 2026, Paul Patterson, Director of Fujitsu Services Ltd, told the Committee that Ernst & Young had advised Fujitsu that it was not necessary to make a provision in its accounts for its stated commitment to contribute to the anticipated £1.8 billion Horizon redress bill.”
— Business and Trade Committee Chair · Outlining the basis for the inquiry to EY
“… the Committee is concerned to understand how this advice aligns with UK accounting standards on provisions for probable, material liabilities arising from past events.”
— Business and Trade Committee Chair · Expressing the Committee's core concern about the accounting treatment
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Source · parliament.uk record ↗