@Chillymoanday Gently, while I understand how angry you are, you cannot hope to 'win' this one no matter what you do. It's maddening, it's not fair, and I understand your anger, but it is what happens constantly, in spite of what the law may say.
If you are absolutely sure that it is you they want rid of (and it sounds like you are probably 💯 % correct) they WILL find a way to do it legally and can 'prove' that due processes have all been followed, even if there was a sub-text to the decision.
You don't want to go to the police about what happened with someone in your place of employment. You are adamant you are not going to do that, which is up to you, but as a result, it now becomes somewhat irrelevant, because you cannot now refer to it at a tribunal or whatever, and even if you do, it will look like you are possibly making up the accusation, since it was never reported to the police before the settlement/redundancy was ever mentioned. You cannot be sure that the witness will back you up either.
You can push them for a much better settlement than currently offered, agree a good reference, garden leave etc and just leave. You won't have to deal with them again
Or, you can refuse to sign the settlement, end up being made redundant at less good terms - and they WILL find a way to justify their decision to make you redundant.
I repeat, you cannot win and it won't cause them any grief to have to do a real redundancy scoring, etc. You on the other hand are stuck there for longer than you need to be?
I'm sorry this has happened to you, but you would be foolish not to negotiate a settlement while you can. Do you really want to stay there anyway? After what happened? Much as you want revenge, the only person who will be hurt trying to get it, is you
Let it go?