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Fujitsu’s HMRC link may be loosening, but public-sector work continues

A minister said she believed a Treasury contract concerned the HMRC platform, while public-sector extensions continue and the Post Office plans a gradual Horizon transition.
From TheFinanceBase Team4 min to read
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There is evidence of a planned move away from Fujitsu for the Post Office’s Horizon system, but not proof that HMRC’s wider relationship with Fujitsu is ending. In a July 2025 House of Lords debate, a minister said she believed a Treasury contract being discussed concerned the HMRC platform. Meanwhile, Fujitsu continues to receive public-sector work: a Commons committee reported substantial contract extensions, and the Post Office’s Horizon service has a further extension planned to keep it running during transition.

What does the HMRC reference actually establish?

In a 9 July 2025 House of Lords debate, Baroness Anderson of Stoke-on-Trent said: “With regard to Fujitsu and the ongoing contracts, I believe that the Treasury contract is about the HMRC platform.” The wording matters: this was the minister’s belief about the Treasury contract under discussion, not a detailed contract notice or a confirmation that HMRC is ending its whole relationship with Fujitsu.

The parliamentary statement does not establish the contract’s precise scope, value, end date or replacement arrangements. It is therefore more accurate to describe the HMRC connection as under scrutiny than to say that Fujitsu has already lost, or is definitively leaving, HMRC work.

Which Fujitsu public contracts are still running?

Horizon: transition is planned, but service continuity comes first

The Department for Business and Trade’s Future Technology Portfolio describes Horizon as a legacy core trading platform and sets out an exit project in two lots: taking over and transforming the existing service, and introducing off-the-shelf EPOS software for branch applications. This is a transition plan, not evidence that the Fujitsu service has already been replaced.

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A Find a Tender notice published on 12 November 2025 records a one-year extension of additional Horizon services from 1 April 2026 to 31 March 2027, estimated at £41 million excluding VAT. The notice says the extension supports continuity while procurement and transition proceed. It also allows for a further six to 12 months, depending on the transition plan; that additional period is contingent, not a confirmed extension.

Existing work can continue despite a pause on new bids

Fujitsu announced a self-imposed moratorium in January 2024 on bidding for new government customers, as described in Parliament. That is distinct from work for existing customers and extensions to existing contracts. The Commons Business and Trade Committee said it recommended broadening the moratorium; its recommendation is not proof Fujitsu adopted that broader restriction.

A July 2025 written parliamentary answer said departments remain responsible for individual contract awards and referred to the Procurement Act 2023 exclusions regime. It said authorities must consider supplier behaviour and circumstances under that regime. It does not establish that Fujitsu received a particular debarment decision.

How much public-sector work has been reported?

The Commons Business and Trade Committee’s 2026 report gives figures with different scopes and attributions. They should not be treated as interchangeable: the £362 million figure concerns eight contracts extending existing services in a defined period, while the roughly £500 million figure is Fujitsu representative Paul Patterson’s approximate characterization of combined new and extended work.

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Figure What it covers Source and qualification
£362 million Combined value of eight contracts extending existing services, entered into from 1 May 2024 to 15 September 2025 Commons Business and Trade Committee, 2026 report
21 extensions Further extensions made in the same reporting period under original contract provisions Commons Business and Trade Committee, 2026 report; the figure is a count, not a separate value
Approximately £500 million Combined new and extended work Paul Patterson’s approximate characterization, as reported by the Commons Business and Trade Committee in 2026
£41 million excluding VAT Estimated value of the additional Horizon services under the extension from 1 April 2026 to 31 March 2027 Find a Tender notice published 12 November 2025; not the value of Fujitsu’s wider public-sector work
£551.8 million Projected Department for Business and Trade funding for the Future Technology Portfolio across financial years 2026–27 to 2029–30 Department for Business and Trade, 2026; programme funding across several projects, not a Fujitsu award

The committee criticised the lack of proactive transparency: it said the contract values came to light through correspondence and recommended regular publication of all Fujitsu contract and extension values across the public sector. That recommendation is a call for disclosure, not evidence that regular publication has begun.

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Does continued contract spending settle the Horizon compensation question?

No. Contract payments for public services and Fujitsu’s contribution to redress are separate financial questions. The committee reported that the Department for Business and Trade valued total redress at £2 billion, including Capture and administrative and legal costs. It also said that, at the time of its evidence, no final Fujitsu contribution had been agreed and recommended that the Government seek an interim payment.

The same committee report put legal costs to administer the schemes, claimant legal fees and other professional services paid through 31 December 2025 at £164.9 million. That is a redress-related cost figure, not a disclosed amount paid by Fujitsu. The cited committee record does not confirm whether the position on Fujitsu’s contribution changed after its evidence, so it does not support stating that Fujitsu has paid a particular amount.

What the evidence says—and what it does not

  • Supported: the Post Office plans to transition Horizon away from Fujitsu, while an extension is intended to maintain service continuity during procurement and transition.
  • Supported: the Commons committee reported substantial public-sector contract extensions and called for their values to be disclosed regularly.
  • Not established: that the HMRC platform contract has ended, that HMRC’s whole relationship with Fujitsu is ending, or what the Treasury contract’s precise scope and value are.
  • Not established by the cited committee record: a final or current amount Fujitsu has paid toward Horizon-related redress.

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