Embattled Post Office chief executive Nick Read resigns

Sky News has learnt that Mr Read, who took over five years ago, has decided to resign from the government-owned company.

He initially stepped back temporarily from the post to focus on his evidence to the inquiry into the IT debacle that affected hundreds of sub-postmasters.

In a statement confirming his departure after Sky News reported that it was imminent, Mr Read said: "It has been a great privilege to work with colleagues and Postmasters during the past five years in what has been an extraordinarily challenging time for the business and for Postmasters.

"There remains much to be done for this great UK institution but the journey to reset the relationship with Postmasters is well underway and our work to support justice and redress for Postmasters will continue."

Mr Read had been criticised for his leadership of the Post Office for some time, having been accused of being fixated with his pay package by its former chairman, Henry Staunton.

Mr Staunton was sacked earlier this year by the then business secretary, Kemi Badenoch.

Under his leadership, Mr Read had raised the idea of handing partial ownership to Post Office workers, although little progress has been made on such a scheme because of the company's financial travails.

Mr Read will leave the Post Office next March, and his duties will be assumed while he focuses on the Horizon inquiry by Neil Brocklehurst, the company's interim chief operating officer.

The outgoing chief executive will be paid during his notice period but will not receive any additional payoff, according to a government source.

A spokesperson for the Department for Business and Trade declined to comment.

-SKY NEWS