Post Office boss Nick Read is set to step down from the role next year, the company has said.

Mr Read described it as a “great privilege” to have worked as chief executive in an “extraordinarily challenging time for the business and for postmasters”.

He had previously announced his intention to temporarily step back from the role to give his “entire attention” to the next stage of the Horizon IT inquiry.

Interim chief operating officer Neil Brocklehurst has been asked by the Post Office’s board to step up as acting chief executive while Mr Read prepares for the inquiry, the company said.

Mr Read took on the chief executive position in 2019, succeeding former boss Paula Vennells, who this year forfeited her CBE following public anger over her handling of the Horizon crisis.

His decision to step down in March next year comes during the continuing fallout from the Horizon scandal – which included MPs expressing a lack of confidence in his leadership at the business and trade committee in February.

Mr Read was also “exonerated of all misconduct allegations” following a report into his behaviour earlier this year.

The report came after he denied a claim made by former chairman of the Post Office Henry Staunton that he had tried to resign because of pay.

Following his decision to step down, 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 under way and our work to support justice and redress for postmasters will continue.”

Lead campaigner and former subpostmaster Sir Alan Bates said Mr Read “hasn’t achieved anything” during his time as chief executive.

Reacting to his decision to step down Sir Alan told the PA news agency: “Do you know, I predicted that.

“It’s funny that because when I knew he’d taken seven weeks’ leave – in theory to prepare for the inquiry – I thought he’d taken seven weeks off to find a new job.

“Honestly, that was my first thought.”

Asked for reflections on Mr Read’s five-year tenure, Sir Alan said: “Well, he really hasn’t achieved anything, has he?

“He certainly hasn’t done anything for the victims in all of this.

“I mean, I’m lost for words.”

On what he wanted from Mr Read’s successor, Sir Alan told PA: “It needs somebody just to actually resolve and get everything out of the way – get all the misdemeanours that have gone on in the past, get them out in the open and to drive this whole issue, this whole scandal, and all aspects of it, out.

“And get rid of so many of these people who have been involved over the years who just seem to be shuffled around within Post Office.

“Someone’s got to come in with one big sweeping brush and clear the whole thing out.”

More than 700 subpostmasters were prosecuted by the Post Office and received criminal convictions between 1999 and 2015, as Fujitsu’s faulty Horizon IT system made it appear as though money was missing at their branches.

Mr Read will give evidence to the Horizon IT inquiry over the course of three days, beginning on October 9.