Poundland

Lord Harper Excerpts

Wednesday 4th November 2026 Lords Chamber

[Lord Leong (Lab)]

I thank my noble friend for that very important point. For a small supplier, one unpaid invoice can mean struggling to pay its monthly payroll. Suppliers need to know when invoices will be paid and on what terms they are being asked to send more stock. I would advise all suppliers to look at the terms of supply and see whether they have a Romalpa clause in the invoice, meaning that the title does not pass until the payment is made. We are pressing Poundland’s owner to explain how Poundland will protect suppliers as well as staff. The Home and Gift Association has an open register where suppliers can record their exposure.

[Lord Harper (Con)]

My Lords, I take the Minister back to the situation that was raised by my noble friend on the Front Bench—the wider trading conditions. In its report ahead of the Budget, the OBR made it clear that unemployment would rise in the next year and that the costs from the Employment Rights Act were very significant. These came on top of the very significant national insurance rises. Those were all factors in pushing up unemployment and all under the control of the Government. What are the Government going to do to improve the wider trading conditions for the retail sector?

[Lord Leong (Lab)]

As I explained earlier, regarding Poundland we need to look at not only national insurance but other employment costs. However, looking at the history of Poundland, there was a restructuring High Court hearing in 2025, at which the court said that Poundland was in financial distress. This has been ongoing for some time. The Government mentioned in the Budget that they are taking every step to support businesses, high streets and small businesses, and we are committed to doing so.