Postal Services: Rural Areas

Blair McDougall Excerpts

Wednesday 4th February 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for South Shropshire (Stuart Anderson) on securing the debate and on making such a passionate case on behalf of his constituents. As the Minister with responsibility for postal services, I was interested to hear him talk about how that dates back to the time of Henry VIII—a political figure who was hated in Scotland, who was dangerously overweight and who had trouble with his wife, so postal services are in much different and safer hands today.

As so many Members have said, postal services in rural areas and, for that matter, across the country are not simply an administrative matter. If it was simply a case of a bank statement coming late, few of us would be so passionate about it. The hon. Member for Horsham (John Milne) set out how devastating the consequences of the postal service not working can be. Postal services are a lifeline, a point of connection and a cornerstone of communities.

I know from my relatives in highland areas in Scotland just how essential that connection is—to reassure the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), I will raise the issue of his wife’s missing dress and the diesel lorry with Royal Mail—and that is as true in the south of Scotland and rural areas as it is all over the United Kingdom. I say to the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) that I am sorry that his grandson’s card did not arrive, and perhaps I can put a belated happy birthday in Hansard for him to in some way make up for that.

All our constituents place immense value on reliable postal deliveries, accessible post offices and the assurance that even the most remote households remain firmly connected to the rest of the country. I pay tribute, as others have, to the posties and the postmasters and postmistresses across the UK who serve their communities well over and above the level of compensation that they get. My hon. Friend the Member for Corby and East Northamptonshire (Lee Barron) put it best in reminding us that whatever criticisms and complaints hon. Members have, they are in no way directed at those extraordinary staff members who work so hard.

[Helen Morgan]

I think we all agree that our posties work really hard, but one of the problems that has been described to me in Shropshire is recruitment and retention of posties, because their conditions are poor. Royal Mail promised me that it would put in extra rounds in North Shropshire to alleviate the problem. As far as I know, that only happened last week. Why is it acting so slowly, and what pressure can the Minister bring to bear on it to improve the conditions for our posties?

[Blair McDougall]

The hon. Member makes a really important point. Being a postie is a good job and we need to make sure that it is an attractive job. I will come to my discussions with Royal Mail on those and other matters shortly.

Others have mentioned the broader technological changes in society that have reshaped how people live and work and created challenges for Royal Mail and the Post Office. It is important to remember that these institutions create a sense of continuity in a time of change. We are committed to the universal postal service—the guarantee that letters and parcels will be delivered at a uniform price to every address, however remote.

[Mark Pritchard]

I am glad that the Government are committed to that, but I am not sure that Royal Mail is, and that is the problem. Ofcom fines are clearly not working, because Royal Mails keeps repeating the same mistakes. I hope the Minister will note this moment in time—this debate—because I am very concerned by a situation in which Royal Mail is making the same mistakes and just paying the fines, and baking that into their business plan, and the Minister is saying, as he no doubt will later on, that he has limited powers because it is now a private company. If that is the case, then it is likely that all our constituents will see a further decline in letter delivery services. Will the Minister at least commit that, in those circumstances, the Government will apply for a judicial review on the grounds of failure to disclose necessary documents at the point of sale and failure to deliver the universal service obligation—a legal obligation? If the Government do not intervene, I believe that we will see a complete collapse of the letter delivery service.

[Blair McDougall]

I will come to my discussions with Royal Mail shortly. I know that the right hon. Member and I are due to discuss this issue face to face in a few days’ time. I share the deep frustration that has been voiced today and agree that Royal Mail has not just a legal obligation, but an obligation and a responsibility in our democracy. There are special measures in place around postal votes. Royal Mail has traditionally taken on additional staff and done sweeps of post boxes during elections, and we would absolutely insist and expect that that happens in the elections that the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale raised.

I met Royal Mail’s chief executive and senior management yesterday, specifically to raise concerns that Members across the House have shared with me in recent weeks. Royal Mail knows that it has not always delivered, and I was given an absolute commitment that it will work to deliver the best possible service to customers, while accepting that there have been service challenges.

The hon. Member for South Devon (Caroline Voaden), my hon. Friend the Member for Rushcliffe (James Naish), the hon. Member for North Shropshire (Helen Morgan), the right hon. Member for The Wrekin (Mark Pritchard), my hon. Friend the Member for Southend East and Rochford (Mr Alaba) and the hon. Member for Strangford (Jim Shannon) all mentioned concerns about NHS appointment letters not getting through. That is a particular issue that I am pursuing in conjunction with colleagues in the Department of Health and Social Care, because there is an ability to make sure that those get through.

I know that South Shropshire suffered widespread disruption in early January after storms, and as a result there were times when the rotation of mail processes could not be followed and deliveries were affected. The hon. Member for South Shropshire engaged with Royal Mail, and it told me that it welcomes such engagement; it thinks that it is important for hon. Members to continue to engage with it. I know that hundreds of hon. Members will have visited their local sorting offices over Christmas.

I will personally ensure that every single issue that has been raised by hon. Members here today is communicated back to Royal Mail at a senior level, because customers, particularly those in rural areas, must see visible and sustained improvements in reliability, timeliness and delivery office performance. The discussions that we have had today will inform every engagement I have with Royal Mail. As I have said, yesterday I made it clear that people not getting their mail is simply not good enough.

[David Mundell]

The hon. Member for Corby and East Northamptonshire (Lee Barron) made a very important point about the last mile. Something that really concerns me and my constituents is the sustainability of the Royal Mail in that context, because delivery companies are taking on deliveries, but they leave the hard bit—going up the track, or the miles into the valley—for Royal Mail to do. I cannot see how that can be sustainable.

[Blair McDougall]

I will come to that point on other parcel delivery providers shortly.

Before the takeover of Royal Mail, we secured commitments from its new owners, EP Group. In addition to retaining a golden share in Royal Mail, we secured a commitment to prevent further value from being taken out of it until the quality of service improves.

[Jim Shannon]

I thank the Minister for responding to all the questions that we posed. One of mine was about the minimum wage. If a business wants to retain staff, it has to pay them a decent wage. The problem in Newtownards is that some of the staff who have been there for many years are not getting the minimum wage, so if something better comes up, they are away. We cannot blame them; if someone has to pay bills, they have to do that. Instead of Royal Mail paying a fine, which could be used to pay wages, would it not be better and more sensible for it to give workers a decent wage, retain them and improve the service from the bottom up? Is the Minister in any way able to encourage it to do that?

[Blair McDougall]

The hon. Member makes a really important point about staff retention. Obviously, management and the workforce are working on implementing not only reforms but the pay deal. Hopefully, that will play an important role in helping to tackle what he has just spoken about.

In addition to my discussions with Royal Mail, I have had detailed discussions with Ofcom, which has an essential role in improving standards. As the hon. Member for Strangford has just pointed out, Ofcom has told Royal Mail that it must publish a credible improvement plan that delivers significant and continuous improvement, and made it clear that, without such a plan, it is likely that fines will continue to be imposed.

The hon. Member for South Shropshire mentioned the context for this debate, which is the change in consumer behaviour and communication. The average household now receives only four letters per week, down from 14, yet the number of addresses in the country has risen by 4 million. To protect the USO for the long term, Ofcom has introduced reforms that are projected to deliver up to £450 million in annual savings, helping to get Royal Mail on to a more financially sustainable basis. We now need Royal Mail to work with its workforce and unions to deliver the service that we all expect.

Several hon. Members raised concerns about now slightly notorious parcel providers other than Royal Mail. Ministers and Ofcom have made it clear that the way they are operating is not good enough and that they are on notice.

[Mark Pritchard]

I am grateful to the Minister for being so generous. On the point about the golden share and Royal Mail having been put on notice, what powers of intervention or sanction does the Minister have? Can he provide to my constituents who are listening to this debate the solution they are hoping for? We have not heard it yet.

[Blair McDougall]

As I mentioned a moment ago, when Royal Mail was taken over, the deed included all sorts of assurances about making sure that the owners cannot take value out of the company until they improve service. Their financial interests are deeply tied to the service that our constituents receive.

Turning briefly to the rural post office network, we currently have a network of 11,500 post office branches around the country and most people live within 3 miles of one. However, as Members have pointed out, those averages do not paint the full picture. The Government have invested significantly in the post office network precisely because it provides essential services. Although it is publicly owned, Post Office operates as a commercial business with its own board of directors. It must have the commercial freedom to deliver the branch network within the parameters that we set.

Several Members raised concerns about the Green Paper process and whether we would continue with the current level of service. Our starting assumption was that we would, but we thought it was right to have a debate given how long it has been since we had that conversation. Just finally, we absolutely recognise the importance of banking services and the Post Office, which the hon. Member for Richmond Park (Sarah Olney) spoke about. That is why I and the Economic Secretary to the Treasury held a roundtable last month to talk about continuing that relationship.

Oral Answers to Questions

Blair McDougall Excerpts

Thursday 29th January 2026 Commons Chamber

[Jessica Toale (Bournemouth West) (Lab)]

4. What steps he is taking to help increase economic growth in coastal communities.

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

The Government are committed to supporting growth in coastal areas such as Bournemouth West. The partnership between Business Growth Dorset and the new business growth service makes it easier for firms to access tailored support. The Department for Business and Trade is also strengthening the conditions for investment and helping high-value sectors such as advanced engineering, aerospace and digital industries to expand. Through national programmes supporting investment, exports and innovation, alongside Bournemouth, Christchurch and Poole council’s economic strategy, we will ensure that Bournemouth’s businesses benefit fully from UK-wide measures to boost economic growth.

[Jessica Toale]

I thank the Minister for that answer. Bournemouth and Poole rightly have reputations as premier tourism and leisure destinations, but less well known is our leadership in the digital and creative industries. Two businesses in my constituency, Content Ignite and Iplicit, have been ranked in the top 50 fastest- growing tech businesses in Britain by The Sunday Times. Could the Minister please expand on how this Government are supporting fast-growing high-value industries in coastal towns such as mine?

[Blair McDougall]

I am due to come to my hon. Friend’s constituency in little over a month—I do like to be beside the seaside. We often think of constituencies like hers as tourism and hospitality hotspots, but, as she said, they can also be a hive for the creative industries, of which she is such a champion. Through the £380 million creative industries sector plan, we are boosting innovation, skills and access to finance nationwide, which is helping firms, including in her constituency. She will know that businesses in her area also benefit from such a strong talent pipeline coming from her area’s great universities, and I look forward to working with her and learning more when I visit soon.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his positive, constructive and helpful answers. For Ards and North Down council in my constituency, the thrust of its economic growth strategy is tourism, and there have been many dividends from that. It is important that, right across the United Kingdom of Great Britain and Northern Ireland, we have the chance to advance and do better. The Minister might not have had the opportunity to talk to the local Minister in the Northern Ireland Assembly, Gordon Lyons, on this issue, but I hope that he will do so, and thereby we can all gain from his knowledge of what we are doing back home.

[Blair McDougall]

I had a fantastic family holiday in Northern Ireland, driven by my son’s obsession with the Titanic—I had a very moving visit there. I have met my opposite number with responsibility for small businesses in Northern Ireland, and I am happy to have the discussion that the hon. Member suggests.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

5. What steps he is taking to encourage businesses to export.

--- Later in debate ---

[Jess Brown-Fuller (Chichester) (LD)]

13. What steps he is taking to support businesses with their operating costs.

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

The Government are working hard to reduce operating costs for all UK businesses, including those in Chichester. We are working to reduce the annual administrative burden of regulation by £5.6 billion by 2029, enabling businesses to unlock growth and boost innovation across key sectors. We are introducing the most significant legislation to tackle late payments in over 25 years, providing a support package worth more than £4 billion over the next three years to help business rate payers and fully funding apprenticeship training costs for all eligible 16 to 24-year-olds.

[Jess Brown-Fuller]

The irony for many small businesses in Chichester is that they are busy, well established and popular. It is not bad business, but bad policy, that is making them struggle.

“The current business rates system disincentivises investment, creates uncertainty and places an undue burden on our high streets.”

Those are not my words; they are lifted from the Labour party manifesto. When should my local businesses expect the changes to business rates that they need, and will the Government please explore a commercial landowner levy in their upcoming review?

[Blair McDougall]

The hon. Member is right to highlight the Government’s commitment to tackling inadequacies in the way rates are calculated, and that is exactly what my hon. Friend the Exchequer Secretary to the Treasury spoke about from the Dispatch Box the other day. Beyond the rates issue, we are protecting high street businesses from upward-only rental review clauses, and we are introducing a community right to buy so that people can take ownership of valued community assets on the high street. We also have rental options for empty properties on the high street and action on bogus businesses, as the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), mentioned. We are doing a great deal to help the businesses the hon. Member described.

[Liz Twist (Blaydon and Consett) (Lab)]

14. What steps he is taking to implement the modern industrial strategy.

[Luke Akehurst (North Durham) (Lab)]

15. What steps he is taking to implement the modern industrial strategy.

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

We are focused on delivering our industrial strategy so that we are once again a nation that makes things, invents new industries and exports around the world. We are investing £100 billion in industries through the National Wealth Fund, directing £9 billion in research and innovation funding to key growth industries, and bringing forward a huge increase in support for exporters through UK Export Finance.

[Liz Twist]

For 14 years under the last Government, my constituents’ living standards stagnated. Across Blaydon and Consett, we have many successful manufacturing and engineering firms such as Slaters Electricals and Petersen Stainless Rigging in Blaydon, Gardner Aerospace and CAV Systems in Consett, and many more. Can my hon. Friend set out how our modern industrial strategy will support businesses in my constituency to raise living standards for my constituents?

[Blair McDougall]

My hon. Friend is such a powerful advocate for the industrial strengths of her part of the world, and it is on exactly those strengths that our industrial strategy is working to drive up business investment to create the high-quality jobs that will improve living standards and deliver better public services for everyone. The Government’s northern growth strategy aims to increase the potential of the northern growth corridor to catalyse growth in sectors such as those she describes, and I know we will continue to work with her to make sure her constituents get the most out of that.

[Luke Akehurst]

County Durham has been home to proud British industries for centuries, but for decades they have been in decline, and communities such as mine in North Durham have paid the price. Our modern industrial strategy will work to fix that. It is going to invest billions in defence, advanced manufacturing and clean power, which are sectors where the north-east has a unique advantage. Can the Minister assure me that our modern industrial strategy will bring jobs, growth and reindustrialisation to my constituency of North Durham?

[Blair McDougall]

Yes, I can assure my hon. Friend of that. The industrial strategy recognises the great strengths of the north-east, for which he is such a strong champion. As part of the North East combined authority, County Durham is benefiting from targeted measures, including at least £30 million from the local innovation partnerships fund and the pilot to develop a resilient electric vehicle supply chain. This will support locally critical components and capabilities backed by DRIVE35. We will shortly set out further detail on our northern growth strategy, building on the commitment to invest up to £45 billion in Northern Powerhouse Rail.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

There is only one rebar mill in the UK—in Cardiff—and it can make enough to meet only a small portion of our needs, which means that we are reliant on imports. Even if we open a new facility, we will not have enough capacity for things like the rail projects and the 1.5 million new homes. The ending of the roll-over tariffs is leading to unused quotas. Companies such as Hy-Ten in my constituency cannot risk making an order when, by the time it arrives in this country, the quota has been used up and it cannot be imported. Will the Minister meet me to look at the impact of these changes on the ground before they strangle economic growth?

[Blair McDougall]

The hon. Lady is right to raise industry worries about the turbulent international trade environment. That is why it is so important that the Government are out in the world engaging—because businesses, including the one that she mentioned, need stability. I would be very happy to arrange that meeting with her.

[Chris Vince (Harlow) (Lab/Co-op)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Mark Pritchard (The Wrekin) (Con)]

While I always enjoy the soliloquies of the Minister of State, it might be an opportunity for the Minister who has responsibility for Royal Mail and postal services to answer this question, given that I wrote to his office about the catastrophic failure of the letter delivery service throughout Shropshire. Would he agree to meet with me and my hon. Friend the Member for South Shropshire (Stuart Anderson) to discuss resolving that issue?

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I am very happy to do so. The right hon. Member will understand that Royal Mail is a private company regulated by Ofcom, but it is also a critical part of our national economic and social infrastructure. It is not acceptable if people are not getting their post, which is a message that I will deliver to Royal Mail in person next week.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The Minister mentioned the music venue levy earlier. He knows that my constituency has amazing music venues, so when will the first payment from that levy be made to those smaller venues?

Business and Trade

Blair McDougall Excerpts

Monday 26th January 2026 Written Corrections

The following extract is from the written statement entitled “Capture Redress and Horizon Shortfall Schemes: Chair of Independent Panel and Independent Reviewer A” made on 16 December 2025.

[Blair McDougall]

On 29 November, I launched the Capture redress scheme to provide payments to postmasters who suffered as a result of the Capture software…

[Official Report, 16 December 2025; Vol. 777, c. 55WS.]

Written correction submitted by the Under-Secretary of State for Business and Trade, the hon. Member for East Renfrewshire (Blair McDougall):

[Blair McDougall]

On 29 October, I launched the Capture redress scheme to provide payments to postmasters who suffered as a result of the Capture software…

Industrial Strategy and Global Talent Taskforce

Blair McDougall Excerpts

Tuesday 20th January 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

Today the Government are setting out the next phase of delivery of the industrial strategy and a major package to strengthen the United Kingdom’s position as a world-leading destination for exceptional international talent.

Delivering the Industrial Strategy

We are moving further and faster to realise the vision set out in the industrial strategy to increase business investment in our highest potential sectors and create high-quality jobs across the UK. In a world where geopolitics is not something that happens somewhere else—and what happens across the world shapes the cost of energy, the price of food and the security of jobs—delivering this strategy is essential not just for raising living standards, but for supporting national security and sovereignty.

Today we are announcing a package of measures to support scale-ups, accelerate battery innovation and reduce unnecessary regulatory burdens. This builds on the “Entrepreneurship in the UK” prospectus published at the Budget, which committed to change how the Government work with founders to back firms to start, scale and stay in the UK. Together, these actions mark a co-ordinated approach to ensure that UK businesses feel an immediate positive impact, unlocking investment and supporting innovation to boost economic growth.

Today’s announcement follows last week’s publication of the latest quarterly update on delivery of the industrial strategy. This was published alongside the Industrial Strategy Advisory Council’s 2026 mandate letter, which commissions the council to provide impactful advice and analysis on key delivery priorities. We have also announced three new members to the ISAC—Amelia Gould, Keith Anderson and Dana Strong—to broaden the council’s insight across UK industry.

In today’s global economy, we must use every tool of Government—domestic and international—to fight for the interests of working people, as well as fighting for British interests abroad.

BBB

The British Business Bank will be making a £25 million investment into Kraken Technologies as part of Kraken’s $1 billion demerger from Octopus Energy Group, the bank’s largest direct investment to date; and two £50 million scale-up fund investments into life sciences, via Epidarex Capital, and into deep tech, via IQ Capital. The last quarter has seen a step change in the activity of the British Business Bank, committing or deploying £1.03 billion in the last quarter.

UK Export Finance

So far this financial year, UK Export Finance has provided over £9 billion of support to help UK businesses grow, invest and secure new contracts overseas. We have introduced legislation to Parliament that will significantly expand UKEF’s firepower from the £80 billion it has today, so that it can back more British firms to seize opportunities in fast growing international markets. Later this month, the Secretary of State will convene major high street banks to unlock additional finance for high growth exporters.

Battery Innovation Programme

The Government are making their largest ever investment in UK battery research and development, with £180 million of battery innovation programme funding going towards supporting UK small and medium-sized enterprises to: secure private capital; accelerate the development of high-risk, high-reward technologies; and commercialise cutting-edge, home-grown battery innovation here in the UK, reducing exposure to volatile global supply chains.

Regulation package

Building on the Government’s regulation action plan progress update in October, the Secretary of State and the Chancellor have commissioned all Departments to set out plans by March to meet the 25% administrative burden reduction target, and the Government will update on further progress towards the target in due course.

The Government will also:

Launch deep-dives, working with industry and trade unions on health and safety regulation and farming and agritech regulation, building on the approach and lessons of the Fingleton review;

Launch the competition consultation “Refining our Competition Regime”, delivering on the commitment in the regulation action plan. This will include proposals to deliver increased pace, predictability, proportionality and improved processes across the UK’s competition regime, such as amending the decision-making model in mergers and markets investigations;

Not proceed with the proposed Audit Bill, avoiding further business burdens; and

Bring forward the consultation on modernising corporate reporting to early 2026, expanded to include virtual annual general meetings.

The Business Secretary and the Chancellor will also ask Ministers to develop and set outcome focused growth goals for key watchdogs that still lack clarity from Government on what growth means for them.

The industrial strategy was never about a single publication at a single point in time. These measures go further and faster, building on existing commitments to ensure that we succeed in ushering in 10 years of stability, growth and investment—the decade of national renewal, even as global pressures evolve.

Talent Package

We have seen competition for top talent around the globe intensify, particularly in research and technology. This is an opportunity for the UK to issue a clear and confident signal: that we welcome the world’s best minds to come and help us drive our industrial strategy and wider growth mission, and that they will find the environment, support and opportunities they need to thrive here.

This Government know that attracting top international talent is a catalyst for creating British jobs, boosting investment and increasing productivity. We are continuously working to better welcome top researchers, innovators and entrepreneurs to the UK, ensuring that we respond swiftly to changes in global mobility trends.

Today’s announcement follows the launch of the global talent taskforce, a new concierge service to support top talent to lay down roots in the UK; and the Department for Science, Innovation and Technology’s £54 million global talent fund, which sits as part of a wider £5 billion HM Government offer on research talent, and which has already secured the relocation of top researchers and their teams to work in our industrial strategy priority areas.

The 2025 immigration White Paper set out plans to improve and expand key visa routes for talent, making it easier to move to the UK for exceptional researchers, entrepreneurs and future leaders.

And, in her 2025 autumn Budget, the Chancellor also expanded the enterprise management incentives scheme, so that scale-ups can offer more competitive equity, and increased the venture capital trust and the enterprise investment scheme investment limits to help high growth companies raise more capital as they scale.

Today’s package continues to build on this work with a series of targeted and practical measures designed to enhance the UK’s offer to exceptional talent. We are:

Doubling the resourcing of our global talent taskforce, including bringing in specialist private sector head-hunting expertise and emboldening our concierge offer to the world’s elite talent, starting with a dedicated focus on international AI talent;

Reimbursing visa fees in a limited and targeted manner for those with skills that will further our deep tech, innovation, and research and development aspirations, including in AI, quantum and semiconductors;

Expanding the global talent visa to make it simpler and easier for those with a relevant academic or research appointment and those in industry to get their visa, ensuring the UK can access the talent it needs, including those working in cutting-edge industries;

Launching a referral route to fast-track sponsorship licences for high-growth and high-potential firms supported by the global talent taskforce or the Office for Investment; and

Providing new Government-funded scholarships for International Mathematical Olympiad gold medal winners.

We are also adding a new talent pathway on business.gov.uk to provide a single, clear “shop window” for exceptional global talent considering relocating to our country.

This Government remain committed to exploring how we can best attract and retain the world’s top talent. By welcoming exceptional individuals through these initiatives, the UK is powering research and innovation that creates jobs, builds our science capabilities, attracts investment and strengthens our economy for the long term. These initiatives form part of our industrial strategy and broader growth mission to strengthen the UK’s global competitiveness, and strengthen cutting-edge industries—now and for the future.

[HCWS1254]

Retained EU Law (Revocation and Reform) Act 2023: Fifth Assimilated Law Report

Blair McDougall Excerpts

Thursday 15th January 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

Today the Secretary of State has laid a report before Parliament pursuant to the Retained EU Law (Revocation and Reform) Act 2023 and published it on gov.uk. This report updates the House in line with the obligations under section 17 of the REUL Act, which requires a report to be published and laid before Parliament every six months detailing all revocations and reforms of assimilated law. This is the fifth report being laid before the House.

The report today summarises the data on the assimilated law dashboard, providing the public with information about the amount of assimilated law there is and where it sits across Departments. The dashboard reflects the position as of 23 December 2025, showing a total of 6,925 instruments of REUL or assimilated law concentrated over approximately 400 unique policy areas. Since the previous update to the dashboard, 61 assimilated law instruments have either been revoked or reformed. In addition, Departments have undertaken further analysis and amended their record of assimilated law. As a result, a net figure of 2,571 instruments have now been revoked or reformed in total.

The report gives details of 25 statutory instruments which were laid by the Government using powers under the REUL Act and other domestic legislation since the previous report. These statutory instruments amend assimilated law to deliver the Government’s priorities. This includes, for example, the Waste Electrical and Electronic Equipment (Amendment, etc.) Regulations 2025 which were made under the Environment Act 2021 and create a fair and level playing field for all businesses placing electricals on to the UK market.

The Government remain committed to fostering a pro-business environment through a streamlined regulatory framework that drives growth and supports innovation. This includes our work reforming assimilated law.

[HCWS1242]

Post Offices: Cheshire

Blair McDougall Excerpts

Thursday 8th January 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I congratulate the hon. Member for Chester South and Eddisbury (Aphra Brandreth) on securing the debate. In my previous role, she and I travelled the world with the Foreign Affairs Committee, so it is good to be dealing with matters that are closer to home. As she so eloquently argued, no matter is closer to home than the importance of post offices to local communities.

I also thank the hon. Lady for giving me the opportunity, for the first time as the Minister responsible for postal services, to put on record at the Dispatch Box my disgust at the way postmasters were treated in the Horizon scandal. The reputations, livelihoods and lives lost as a result of that scandal shame the country, and it is my responsibility to ensure that postmasters get the redress, justice and recognition that they deserve.

As the hon. Lady rightly argued, post offices are so valued by local communities, and not just because of their economic impact—they root local high streets, bring footfall to high streets and, as she said, in many places are the only shop in the village—but because they are essential community hubs.

[Tim Roca (Macclesfield) (Lab)]

Disley in my constituency saw its post office close in July last year in slightly dubious circumstances. The hon. Member for Chester South and Eddisbury (Aphra Brandreth) made the powerful case that post offices are really important in rural and semi-rural areas. Will the Minister join me in asking the Post Office to redouble its efforts to reopen the post office in Disley?

[Blair McDougall]

On this matter, as on all matters in Macclesfield, my hon. Friend is a constant campaigner on behalf of his local community. I will absolutely raise that branch with Post Office management.

The hon. Member for Chester South and Eddisbury mentioned Sandra and Tony, the local sub-postmasters in her area. In my community, I think of Nancy from Harvie Avenue post office in Newton Mearns. She plays a similar role—she not only serves people, but is the cornerstone of the local community. The network of 11,000 post office branches that the hon. Lady talked about makes it the largest retail network in the country, with an unrivalled reach into our cities, towns and villages, which is why it is so important to have this debate.

As the Minister responsible for postal affairs, I am always happy to, and always do, raise issues with Post Office management on behalf of Members of the House. However, I know that the hon. Lady understands that although the Post Office is publicly owned, it operates as a commercial organisation aside from Government. That means it has the commercial freedom to deliver the branch network, but within the access criteria set by the Government, as she rightly pointed out. Those criteria are so important because they set the minimum level of service that should be provided to everyone across the country—for example, the requirement that 99% of the population live within three miles, and 95% of the total urban population within one mile, of their nearest postal service.

The hon. Lady asked whether the Government will continue with those access criteria. It is some time since the Government have looked at those criteria, but we are doing so through the Green Paper and the responses to it. Our starting assumption was that we would maintain that number of post offices, with one eye on their importance to rural communities, which the hon. Lady rightly raised. However, as it has been so long since those access criteria were set, it is right that we take the time to ask whether they are still right for post offices, communities and postmasters.

On post office provision within the hon. Lady’s constituency, 21 branches are operating in her area, serving thousands of customers each month and helping to support the local economy. She raised my Department’s research on the economic value of that across the country—some £5.2 billion in social value and about £1.3 billion for local SMEs—which is particularly felt in her constituency and others with large rural areas.

Let me turn to Kelsall post office, which closed after the resignation of the operator, the Co-op. I completely understand the painful impact that a branch closure can have on a community. The fear that the service will never return can be disruptive. The hon. Lady comes from a small-business background herself, so she will know that, in a franchise model, there will be fluctuations, particularly in a network made up of so many small businesses and the commercial decisions behind them.

I hope that the Post Office’s advertising campaign to find suitable alternative operators for that branch offers some reassurance to the hon. Lady and her constituents. The time it takes to reopen a branch varies depending on the individual circumstances, but at the end of that process the Government’s access criteria will ensure that, whatever form the network takes, services remain within reach of citizens. I hope that we can find a suitable operator for the Kelsall branch.

The hon. Lady said that the Post Office, like any retailer, faces pressure from continually evolving consumer behaviour and all the other pressures that businesses face, and particularly small businesses. Although access to Government services in post offices is important to many customers, services are not utilised as much as they were in the past, and people are sending fewer letters through the post office network year on year. On the other hand, as she rightly said, cash and banking services have become so important to the Post Office. She asked for reassurance on that. I absolutely recognise how essential that part of the business is for the Post Office. I welcome the banking framework 4 agreement between the major banks and the Post Office, which has come into effect this year. It will mean that the Post Office will be able to increase the income that postmasters receive for delivering banking services, further recognising their important role on high streets.

It is clear that the Post Office must continue to evolve and adapt to shifting needs and trends in local and national economies. That is why our Green Paper, which I mentioned a moment ago, seeks to open a dialogue on the future of the Post Office, from the services that it provides and how we can modernise and strengthen the network, to how we change the culture—particularly with regard to the legacy of the Horizon scandal—and the way in which the Post Office is managed. Thousands of individuals, postmasters and stakeholders have contributed to the consultation, and I thank them for doing so. We will publish our response in the coming weeks.

The hon. Lady also mentioned Malpas post office. I congratulate her on her successful campaign. As she will know, cash services at that branch were reinstated in November.

More generally, we remain completely committed to the future of the Post Office. We are providing £83 million in subsidies for the network this year, and half a billion pounds of investment over the next few years to help the Post Office transform so that it has a sustainable future and to ensure that postmasters are better remunerated, in addition to the subsidy I mentioned, which aims to keep particularly uncommercial and rural parts of the network open. That ambition will, I know, be supported by Members across the House who recognise how important post offices are in anchoring our local communities.

Question put and agreed to.

Capture Redress and Horizon Shortfall Schemes: Chair of Independent Panel and Independent Reviewer A

Blair McDougall Excerpts

Tuesday 16th December 2025 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

On 29 November, I launched the Capture redress scheme to provide payments to postmasters who suffered as a result of the Capture software.

Today, I am pleased to announce that the Government are appointing Judge Carol Taylor CBE as the chair of the independent panel for the Capture redress scheme. Her role is to oversee appeals and governance across the panel’s decisions. All appeals will be assessed by the chair, who will serve as the independent reviewer. Judge Taylor will assess whether the grounds for appeal have been satisfied. She will also determine whether the eligibility decision or award should be amended or remain unchanged.

Judge Taylor is a former regional employment judge with over 30 years of judicial experience. She has a distinguished career in employment law and substantial expertise in discrimination and compensation matters and is a champion of diversity. Her expertise will ensure that postmasters are treated fairly and in line with the scheme principles throughout the process.

I am also pleased to announce that the Government are appointing the right hon. Lord Carnwath as the independent reviewer for Horizon shortfall scheme appeals. His role is to act as a final arbiter for appeals claims, to assess whether the assessment of the appeal is substantially inconsistent with the guidance and principles and/or reflects a manifest error, procedural irregularity or a substantive error of principle. Alongside Lord Carnwarth’s appointment we have also published on www.gov.uk the names of the individuals who will make up the HSS appeals independent panel.

[HCWS1174]

Oral Answers to Questions

Blair McDougall Excerpts

Thursday 11th December 2025 Commons Chamber

[Mrs Elsie Blundell (Heywood and Middleton North) (Lab)]

3. What discussions he has had with Royal Mail on improving service levels in the north-west.

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I have discussed Royal Mail’s performance with the chief executive of Royal Mail and its parent company, and they recognise the need to do more to meet service delivery targets. In addition, Ofcom fined Royal Mail £21 million for failing to meet its service targets, and told it to urgently publish and deliver a credible plan that delivers major and continual improvement.

[Mrs Blundell]

I commend the efforts of posties across the country, especially at this time of year, but residents in Middleton in my constituency have been without a reliable postal service for well over a year. That has meant that crucial medical documentation and urgent financial correspondence have been reaching the people of Middleton too late, if at all. What steps are the Government taking to bring about serious improvements in Royal Mail’s service provision in north Greater Manchester, given that Royal Mail alone is proving unable to deliver the change that people in Middleton deserve?

[Blair McDougall]

On this, as on all things, my hon. Friend is a strong voice for the problems faced by her local people. I know that she raised those concerns about local services and resourcing challenges, particularly in Middleton, with Royal Mail. I understand that Royal Mail has recruited 17 more staff in the past few weeks, and that the Middleton delivery office is now fully staffed. As I say, I am discussing such issues with Royal Mail, and it recognises the need to improve.

Mr Speaker, on behalf of the whole House, I wish all our heroic posties a merry Christmas at this most difficult time of year for them.

[Mr Speaker]

I will be there on Friday with the Chorley posties.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I was pleased that my hon. Friend joined the recent reception for small businesses. The Huddersfield-based Syngenta exemplifies local success, investing millions to convert an existing plant into an advanced life sciences manufacturing facility that supplies over 40 countries. The Government support local businesses through the business growth service, alongside the West Yorkshire growth hub, to ensure that businesses in the Colne valley have access to grow, scale and succeed.

[Paul Davies]

I represent 3,455 small and medium-sized enterprises in my constituency. Those businesses provide essential jobs in the local economy. Last weekend, we celebrated Small Business Saturday, and I had the privilege of joining world-renowned author Lee Child as we visited fantastic local businesses, including Read bookshop, Nellie’s Keepsake, the Huntsman Inn and many more. The previous Government turned their back on small businesses. Will the Minister outline what targeted programmes are available to boost local businesses in Colne Valley?

[Blair McDougall]

I am envious of my hon. Friend’s meeting Lee Child. If I had known, I might have asked him to put in a word for me to be the next Jack Reacher —I think I have the build for the role.

The Government continue to reach businesses through the West Yorkshire mayoral authority’s £1.4 billion investment over 30 years, including £30 million annually for local priorities. The West Yorkshire growth hub, along with help to grow and the apprenticeship reforms we have announced, will further boost local skills and productivity. SMEs in West Yorkshire will also be able to access the Made Smarter adoption pilot programme for professional and business services—a particular strength of my hon. Friend’s part of the world—with the aim of driving productivity through digital adoption and skills investment. We will continue to work with him to make those programmes a success.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

12. What steps he is taking to support the hospitality sector in Glastonbury and Somerton constituency.

--- Later in debate ---

[Michael Payne (Gedling) (Lab)]

T5. I recently visited Boutique Flowers on Carlton Hill in Gedling, which is a brilliant local business owned by Sally and Tina. They told me that they are losing thousands of pounds as a result of fraudulent chargebacks, and many small businesses are facing the same issue across the country. Will the Minister work with small businesses, banks, and payment providers to reform the chargeback system and put an end to this growing fraud scandal that is hitting small businesses across the country?

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I thank Boutique Flowers for everything that it contributes to my hon. Friend’s local community. That sort of fraud is galling when someone is trying to keep a local business going, and colleagues in the Home Office and my Department are working on a new expanded fraud strategy to be published early next year. I will make sure that the experience of his constituents is fed in to that strategy.

[James MacCleary (Lewes) (LD)]

T3. A local restaurateur who operates in the village of Alfriston in my constituency recently came to see me at an advice surgery to talk about the challenges he faces, including increased national insurance costs, the minimum wage, sky-high business rates and rent, and ever increasing energy and utility costs. Most months he struggles to turn a profit at all. I recently heard a similar story from the landlords at the Elephant & Castle pub. Does the Minister understand that these Government policies are making it impossible for small businesses such as those to succeed, and will she meet hospitality businesses in my constituency to learn more?

--- Later in debate ---

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

T8. Ahead of Small Business Saturday, I visited Armen at Rose Green Hardware. He told me that it has never been as tough to run a small business as it is under this Labour Government. Does the Minister believe that removing business rates relief will make things any easier?

[Blair McDougall]

The hon. Lady intervened on me to make a similar point in yesterday’s debate. She and her party knew that the transitional covid relief was coming to end and that revaluation was coming, because that had been agreed when the Conservatives were in Government. The difference with this Government is that we have put in more than £4 billion to cushion that transition. That shows our support for small businesses, versus them being thrown overboard by her party when they were in government.

[Liz Twist (Blaydon and Consett) (Lab)]

Earlier this year, 150,000 workers across the north-east benefited from the increase in the national minimum wage, with another increase due in April as a result of the Budget. However, it is important that these increases are actually applied, so the Minister set out what steps she is taking to ensure that employers comply?

[Christine Jardine (Edinburgh West) (LD)]

T9. Retail is Scotland’s largest private sector employer, but businesses do not receive the same sort of business rates relief as those in the rest of the UK, which puts them at a disadvantage. A group of Scottish retailers recently wrote to the Scottish Government asking for this relief in the Scottish Budget. Will the Minister join me in pressing for that action, and pass the message on to other Ministers to mention in their discussions with the Scottish Government?

[Blair McDougall]

I am happy to join the hon. Lady in pressing for that action. It is a running theme that when we in this place vote to introduce more support, the money goes through to the Scottish Government but is not passed on to grassroots communities around the country. The question that she asks is the same as that asked by constituents in my area: where has all that money gone?

[Dr Lauren Sullivan (Gravesham) (Lab)]

The loss of the Gravesend to Tilbury ferry has had a detrimental impact on our high street, with businesses reporting a fall in footfall. Will the Minister meet me to advise on any potential capital revenue grants that could unlock growth in this area and the wider Thames estuary?

--- Later in debate ---

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

I got the chance to do some essential Christmas shopping on small business Saturday last week. I bought cakes from Gayton’s and a wreath from the Flower House, and I managed to get in my Christmas turkey order at Bates in Atherstone. Can the Minister tell us what extra support he will provide to small retail businesses in North Warwickshire and Bedworth and across the country?

[Blair McDougall]

I, too, enjoyed small business Saturday; I got to return to Beveridge fishmongers in Giffnock in my constituency, where I used to work. According to Small Business Britain, the boost given by small business Saturday has been the biggest in six years, so there is real room for optimism for small businesses as we go into the new year. Through the small business strategy, increasing access to finance, cutting red tape and ensuring that we tackle late payments, we will support small businesses in my hon. Friend’s constituency and across the UK.

[Lincoln Jopp (Spelthorne) (Con)]

The Minister’s magnificent waistcoat reminds me that last night I was at the grand opening of Tulip Treasures Florist on Shepperton high street in my constituency. Will the Minister wish young Rhiannon, who is taking that brave step, every success in her endeavours?

--- Later in debate ---

[Chris Webb (Blackpool South) (Lab)]

Last weekend I attended Waterloo Road’s first ever winter wonderland Christmas lights switch-on, which was a fantastic celebration in the spirit of small business Saturday in the most deprived ward in our country. Those businesses told me on Saturday, as they have done many times, that they have been left behind for too long, and that the high street is suffering. Will the Minister meet me to discuss what we can do to support our high streets in the most deprived areas of this country?

[Blair McDougall]

I am very happy to meet my hon. Friend to discuss that issue, and I know that he is a constant campaigner for small businesses in his constituency. In addition to my answer a moment ago about the measures within the business strategy, it is important to note that this has to be a cross-Government effort, including tackling issues such as bogus businesses and retail crime that have such an impact on the character of our high streets, as well as the footfall that ultimately leads to profitability for those small businesses.

[Sean Woodcock (Banbury) (Lab)]

The Minister has rightly congratulated Lando Norris and McLaren on their victory in the Formula 1 championship at the weekend. Motorsport brings in an estimated £9 billion to the UK economy, along with high-skilled jobs, cultural soft power and so on. Will the Minister join me in commending the sector on its contribution to the wider UK economy, and perhaps join me in visiting one of the Formula 1 or motorsport teams in my constituency?

Seasonal Work

Blair McDougall Excerpts

Wednesday 10th December 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“notes the Government’s strong support for small and medium-sized businesses, including those employing seasonal workers; further notes that the Government’s Employment Rights Bill will help seasonal workers by bringing the UK’s outdated employment laws into the 21st century; welcomes the policy paper entitled Backing your business: our plan for small and medium sized businesses, which sets out a comprehensive vision for productivity and success; further welcomes action to tackle late payments through the introduction of the toughest laws in the G7, helping SMEs maintain cash flow during peak periods; supports measures to cut energy bills for SMEs through investment in clean power and reducing levies; commends investment in high streets via the Pride in Place fund, boosting footfall for seasonal trade; also notes consultations to reduce burdens on hospitality businesses; and further commends targeted support through the Business Growth Service to help SMEs access skills, finance and growth opportunities.”

Around this time every year, I like to re-read “A Christmas Carol”. Last night, I read that passage from Dickens where the protagonist says:

“every idiot who goes about with ‘Merry Christmas’ on his lips, should be boiled with his own pudding, and buried with a stake of holly through his heart”.

I have to say that the tone of the shadow Minister’s speech made Ebeneezer Scrooge sound positively festive!

The Government recognise that it has been a hard few years for business. Despite the appalling economic legacy the hon. Gentleman’s party left us, in this festive period we can look forward to the new year with a sense of optimism. Living standards are rising and wages are growing faster than prices. The Productive Business Index found, a few days ago, that nearly three quarters of small businesses expect revenue increases over the next three months and nearly two thirds have seen rising order volumes in the last three months. The hon. Gentleman mentions, as did other Members, Small Business Saturday. Small Business Britain reports that spending during Small Business Saturday last weekend was the highest it has been in five years.

Despite what the hon. Gentleman says, I ran a business for a decade and I know how hard the last decade was. [Interruption.] It would be immodest to agree with what he says from a sedentary position.

[Sir Roger Gale (Herne Bay and Sandwich) (Con)]

On Saturday last, I was in Herne Bay on Mortimer Street, where there is an absolutely fabulous toy shop called Kids Korner. It was empty. I said to them, “How are you doing?” They said, “The shop is empty, the street is empty. Nobody is spending any money.” The hospitality industry is on its knees. The hon. Member for Canterbury (Rosie Duffield) and I attended a roundtable recently, where every single person present said that they were having a hard time, and some were in danger of going into liquidation. I raised this example in the House earlier this week: one chain of 25 cafés, which employs young people, had a profit of £12 over the last 12 months. That is due entirely to this Government’s policies.

[Blair McDougall]

The right hon. Gentleman hits the nail on the head when he talks about people not spending money. That is exactly why this Labour Government are taking action to put money into people’s pockets. We must recognise that a big part of why it has been such a difficult 10 years for business were the stagnating living standards and stagnating wages under his Government. I know that hospitality, leisure and retail, which have very thin margins, have been hit especially hard by the pandemic, the cost of living crisis and changes in shopping habits, but that is why we recognised that and published, for the first time in a decade, a Government strategy for small businesses. It is why we are putting more money into people’s pockets. It is why fiscal credibility, which the Conservatives just do not seem to value at all, matters to our constituents.

[Sir Ashley Fox (Bridgwater) (Con)]

The Globe Inn in North Petherton is a fantastic local pub. This financial year, its business rates bill is zero. By 2029-30, it will be £5,000, thanks to this Government. That is an extra 10,000 pints it will have to sell to meet that extra cost. How is the Government’s strategy helping?

[Blair McDougall]

The hon. Gentleman will know about the transitional relief that we are putting in—I will come on to that in a moment—but we are putting more money into people’s pockets.

I spent five days last week speaking to small businesses. I was in Staffordshire, the north-west and Scotland meeting dozens of small businesses, and all of them said the same thing to me: what they want is footfall. As the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale) said, they want people to start spending money again and to get custom.

[Alison Griffiths]

Will the Minister give way?

[Blair McDougall]

I will make some progress first.

We are lowering costs. The hon. Member for Droitwich and Evesham mentioned the burden of regulation and red tape, but I have to ask: where was he for the last 14 years? When Labour came to power, we inherited a situation where businesses were spending 380 million staff hours on form-filling and red tape every year. We are getting into that now in a way that just did not happen before.

[Anna Gelderd (South East Cornwall) (Lab)]

On that point, it is important to note that businesses such as the Co-op and IKEA are supportive. The Minister mentions red tape; time and again, businesses in my constituency tell me that bureaucracy is holding them back. Will the Minister outline how we will cut red tape further?

[Blair McDougall]

Let us start with a few weeks ago, when we brought in changes meaning that thousands upon thousands of companies—particularly smaller companies—no longer have to engage in so much of that corporate reporting, which was completely unnecessary, saving about £250 million on the way to our wider target of cutting the regulatory burden by 25% and cutting £5 billion.

[Alison Griffiths]

I am grateful to the Minister for giving way. I invite him to visit the hairdressers in Aldwick, in my constituency of Bognor Regis and Littlehampton, where the owner will tell him that he spends hours upon hours working to ensure that he can even stay profitable. The Government might be withdrawing some aspects of small business paperwork, but that does not change the fact that the maths do not add up. Unless the owner spends hours dotting every i, crossing every t and cutting costs where he can, his employees will not have jobs and be able then to spend more money.

--- Later in debate ---

[Blair McDougall]

The hon. Lady makes an important point, which is exactly why we are trying to drive down costs for business, not least when it comes to red tape. If there is something in particular about your constituent’s business—I do not know if it is the hairdressers that you yourself frequent—perhaps I could pop along. I would be very happy to listen—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I do not wish to put on the public record which establishments I do and do not frequent, Minister.

[Blair McDougall]

My apologies, Madam Deputy Speaker.

Opposition Members raise the matter of business rates as well. It is exactly because we recognise the stress that retail, hospitality and leisure businesses face that the smallest of those properties will now have the lowest business rate since 1991, and those with values below £500,000 will have their lowest rate since 2011. That is a permanent tax cut worth nearly £1 billion a year, benefiting more than 750,000 retail, hospitality and leisure properties.

[Alison Griffiths]

I thank the Minister for giving way again. I would just like to tell him about Charlie Cockaday, who runs the Fox Inn in Felpham, who tells me that with the new business rates reform introduced by this Government, he will be paying £1,600 a month more in business rates going forward, which is the equivalent of 35p for each pint that he sells. How does that equate to putting more money in people’s pockets?

[Blair McDougall]

Again, I will talk about the transitional relief that we have brought in. Under the plans for valuation that we inherited, pubs were looking at rates increasing by about 45%; because of the relief we have introduced, they will face about a tenth of that. So we are acting.

I have to say, the Conservatives knew that this revaluation was coming; they knew that the temporary covid relief was coming to an end. How much did they have in their financial plans to help businesses with this revaluation? Nothing. They did not allocate a single penny for it, and now they criticise us for having brought in a £4 billion package to help businesses with it. Worse than that, they oppose the higher business rates that we have brought in for the warehouses of online giants, which is exactly what is paying for the structural change allowing for permanently lower business rates on retail and hospitality.

[John Glen (Salisbury) (Con)]

Governments have to make choices—we all understand that—but the choice that this Government made was not to cut spending on welfare, which has limited their choices elsewhere. There is a real choice. If the Conservatives had been in power, we would not have made those choices over the summer, and the hospitality sector would have been in a very different place in the Budget.

[Blair McDougall]

That is exactly my point—the Conservatives were not going to make those choices. Those choices were not in their financial plans, but they are in ours.

[Tom Tugendhat]

Will the Minister give way?

[Blair McDougall]

I will give way one more time, but only because I have deep affection for the right hon. Gentleman.

[Tom Tugendhat]

The Minister is a charming and, no doubt, soon to be very well-haircutted gentleman. The point that my right hon. Friend the Member for Salisbury (John Glen) was making—I am afraid this reinforces it—is that such a choice was clearly not in the Government’s plans, either. Otherwise, they would not have brought forward the welfare changes they planned in July, but have since been bounced out of by their own Back Benchers. It clearly was not their plan either, and that is why we are in this position.

[Blair McDougall]

But it is in our plan. We have just passed the Budget, which introduces the relief on business rates.

Let me return to the theme of “A Christmas Carol” and the visit of the ghost of Christmas past. Let us travel back to when the hon. Member for Droitwich and Evesham gushed about Liz Truss’s mini-Budget, with her unfunded tax giveaway, which he said represented “a new era” and would

“help everybody with the cost-of-living pressures”.

Well, unlike Ebenezer Scrooge, the hon. Gentleman has not repented; he has not seen the error of his ways and the impact of unfunded commitments. Instead, he is at it again, calling for tax cuts without any idea whatsoever of how to pay for them.

[Chris Vince]

Members on the Conservative Benches talk about political choices—they made a political choice to bring in austerity, which meant a lack of funding for the NHS. My constituency of Harlow is full of sole traders who tell me that what really affects their ability to earn money, in order to have money in their pockets to spend in the pub or at other establishments, is the fact they have to wait for years on end to get a doctor’s appointment or an operation. Does he agree that the Chancellor has made the right choice to invest in our NHS so that we can get waiting times down and my workers can get back to work?

[Blair McDougall]

My hon. Friend is absolutely right. That is one of the important ways we will get the welfare bill down as well as getting more money into people’s pockets, and ultimately more money into tills. Instead of fantastical unfunded tax cuts, we are giving real help to high streets across the country. Millions of British people will benefit from the £5 billion Pride in Place programme, which puts local people in 339 neighbourhoods in the driving seat of renewing their own areas.

[Ms Billington]

I am grateful to the Government for the fact that Ramsgate in particular is benefiting from the Pride in Place fund. More widely, on the matter of seasonal work, which is vital for coastal communities such as mine, can the Minister confirm that seasonal and hospitality workers will benefit from many of the measures in the Budget that will tackle the cost of living and raise their wages, such as increases to the minimum wage, cuts to energy bills and the freezing of bus and train fares?

--- Later in debate ---

[Blair McDougall]

Absolutely. Members on the Government Benches recognise the link between the standard of living and business sustainability. My hon. Friend mentioned that her area will benefit from Pride in Place—the hon. Member for Droitwich and Evesham has Smethwick, Darlaston, Bilston, Dudley and Bedworth in his part of the world, all of which are receiving funding through Pride in Place.

We are also ensuring that we protect the character and the safety of high streets, because again, what we hear from small businesses again and again is that they need footfall. We need to make high streets attractive places to go, so we are clamping down on illegal high street activity in premises such as mini-marts, barbershops, vape shops and nail bars. At the Budget, we announced an additional £15 million a year, alongside wider measures to tackle bogus retailers.

[Dr Murrison]

Has the Minister compared and contrasted Pride in Place with the future high streets fund, which was a proven mechanism for uplifting the state of many of our high streets, including Trowbridge in my constituency? He is trotting out a load of things that he thinks will benefit retail and hospitality. The whole point of retail and hospitality businesses is that they must be welcoming places that are open to all, so what does he make of the dozens of pubs and restaurants up and down the country that are now feeling forced to put up signs in their windows that say “No Labour MPs”?

[Blair McDougall]

I have yet to see any pub with any such sign. My hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) spoke about how disastrous the implementation of the future high streets fund was on the ground, and we are trying to learn lessons from that.

The hon. Member for Droitwich and Evesham also criticised the Employment Rights Bill. I compared him to Scrooge earlier, but I am sorry to say that on this subject he was even less charitable than Dickens’s great character. Scrooge famously wanted his workers to have regular hours over Christmas—indeed, he insisted on it—but the hon. Gentleman does not seem to want that. Even Scrooge by the end of the story gave Bob Cratchit a pay rise so that his family could enjoy Christmas, but the hon. Gentleman is arguing against that.

[Gareth Snell]

I remember sitting on the Opposition Benches when the Conservatives were in government. They were trumpeting their increase in the minimum wage and saying that the creation of the living wage was a demonstration of their commitment to helping low-paid people in this country. Does the Minister worry that, if we extrapolate the point that the hon. Member for Droitwich and Evesham has been making to its natural conclusion, the Conservatives are actually advocating a cut in the minimum wage as a way to help businesses, which would be detrimental to the thousands of people in Stoke-on-Trent who rely on that money to pay their bills?

[Blair McDougall]

I could not agree more with my hon. Friend. Again, the Conservatives do not understand the link between what is in people’s pockets and what goes into the tills. I spent a fantastic day with my hon. Friend and his local businesses last week, and I was impressed by how those at the businesses were all on first-name terms with him.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does the Minister agree that part of the problem was caused by the Conservatives, who did not welcome the introduction of the minimum wage in 1998, saying that it would destroy businesses, and later when in government split the minimum wage so that people over 25 got more than people under 25, which is causing the inequality that we are having to deal with now?

[Blair McDougall]

My hon. Friend is absolutely right. I recall working in this place as a younger man when we had all-night sittings, as the Conservatives united with those in the other place to try to stop our efforts to make work pay for people—and here we are again, a quarter of a century later.

[Dame Caroline Dinenage (Gosport) (Con)]

That is exactly the issue: the Minister was in this place back when the Government were coming up with their plans and policies; meanwhile, I was starting and running a business and employing people. That is the difference. A minimum wage cannot be given to someone who does not have a wage at all because they do not have a job. His party is putting people out of work. There are now 31% more young people not in employment in my constituency than there were this time last year. That is a disgrace, isn’t it?

[Blair McDougall]

If the hon. Member had been here at the start of the debate, she would have heard me talking about how I ran a business as well. She mentions job creation. The first year of this Government has seen 138,000 more jobs.

[Alison Griffiths]

Will the Minister give way?

[Blair McDougall]

No, I have given way several times. I will make progress.

The Government are fully supportive of the variety of working arrangements that people, including young people, might choose depending on their circumstances, but the key word there is “choose”. Until now, that flexibility has been entirely one-sided; it has been something that employers have used to their benefit. It is time to let workers have their rights.

My hon. Friend the Member for Stoke-on-Trent Central asked about whether Conservative Members understand what it is like to be in insecure work, particularly at this time of year. This is the most expensive—

[Alison Griffiths]

Will the Minister give way?

[Blair McDougall]

No, I am coming to a close.

This is the most expensive time of year, and December is the most expensive month. Labour is proud to be acting to ensure that families can plan for the expense of Christmas and look forward to Christmas without worrying and having anxiety about whether they can make it to the end of the month. The criticisms and lack of understanding from the Conservatives about how important the cost of living and money in people’s pockets is to the success of businesses is, quite frankly, humbug.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

Royal Mail: Universal Service Obligation

Blair McDougall Excerpts

Tuesday 4th November 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for Bridgwater (Sir Ashley Fox) on securing this important debate on Royal Mail and the USO, an issue that matters deeply to households and to businesses across the country. Royal Mail is an iconic part of the UK’s infrastructure. The postie remains a familiar part of every city, town and village, providing a vital service to communities around the country. As other hon. Members have done, I pay tribute to the dedication of posties. I know, from spending time out on delivery with posties from the Barrhead sorting office in my constituency, the care that they have for their customers, and particularly their vulnerable customers. The USO underpins the network, guaranteeing that letters and parcels can be sent anywhere in the UK at a uniform price, six days a week. That principle ensures that businesses can reach customers nationwide and that families can stay connected.

[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

I represent a partly rural constituency, Morecambe and Lunesdale, so my constituents rely on the universal service obligation. They also rely on regular mail deliveries for vital information such as hospital appointments. But my constituents, particularly in villages like Endmoor, are suffering with irregular and delayed deliveries. Does the Minister agree that my rural constituents deserve a good postal service, and that Royal Mail should focus on delivering one? What steps is the Minister taking to secure that service?

[Blair McDougall]

My hon. Friend makes an essential point about the importance of the postal service in rural areas. The hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) made that point as well. I know from my relatives in highland areas how essential that connection is. My hon. Friend raises the issue of NHS appointment letters—that point was also raised by my right hon. Friend the Member for Oxford East (Anneliese Dodds) and the hon. Member for Bridgwater. The trials of barcodes on those letters have been very successful, and I am happy to continue discussions with the Health Secretary to make sure that those barcodes are rolled out as widely as possible.

[Patricia Ferguson (Glasgow West) (Lab)]

I am grateful to my right hon. Friend the Member for Oxford East (Anneliese Dodds) for raising the issue of the barcodes. Royal Mail representatives came before the Scottish Affairs Committee when we wanted to discuss with them the problem of deliveries in rural and highland areas. They were particularly proud to talk about the barcode idea, but seemed to be concerned that perhaps in Scotland there was not the same alacrity in adopting that sensible suggestion. Given the Minister’s knowledge of the geography of Scotland, which is at least as good as mine, is that a point he might want to take up with colleagues in the Scottish Government?

[Blair McDougall]

I certainly will. As I mentioned a moment ago, the more dispersed geography of Scotland means that the postal service is often even more of a lifeline in our part of the world. I will certainly follow up that point with Scottish Ministers, and with colleagues in the Department of Health and Social Care. On the future of the universal postal service, I reassure the hon. Member for Bridgwater that we remain committed to a comprehensive USO that is financially sustainable and efficient, and that meets user needs within the open and competitive market. That is why the six-days-a-week, one-price-goes-anywhere universal service remains at the heart of the regulatory regime that is overseen by Ofcom, but of course the universal postal service faces challenges, as many Members have said.

[Alex Mayer (Dunstable and Leighton Buzzard) (Lab)]

It is also important to get letters into the postal service in the first place. In Bidwell West, which is in my constituency, residents face a 30-minute walk to the nearest post box. That is because Royal Mail refuses to put in new post boxes on unadopted roads, despite the fact that the developer is perfectly happy for there to be a new post box. Would the Minister consider raising that with Royal Mail?

[Blair McDougall]

I can certainly do that. Through Ofcom, Royal Mail has obligations in terms of the accessibility of post boxes, and I will raise my hon. Friend’s point with the chief executive of Royal Mail when I meet with him next week.

The challenges faced by Royal Mail are shared in most European countries, which are taking steps to reform their USOs. On 10 July, Ofcom announced reforms to put the USO on a more sustainable footing, and to push Royal Mail to improve reliability. However, changing those obligations alone will not be enough to guarantee a better service, so today, Ofcom has launched a call for input as part of its ongoing review of affordability, which will inform its consultation early next year. Reform of the USO is an ongoing process, which is being undertaken by Ofcom, the independent regulator, so I will not directly insert myself into that. However, I will certainly make sure that the voices of hon. Members are heard, widely and clearly.

Many Members raised issues relating to the quality of service. Experiencing delays is so frustrating, as many Members said. That is why, when EP took over Royal Mail, we secured the commitment through our golden share that before its new owners take value out of Royal Mail, quality of service must improve. Ofcom has powers to investigate and take enforcement action when failures in quality of service are identified, as it did recently when it fined Royal Mail £21 million for contravening its service conditions in 2024-25. Ofcom has told Royal Mail that it must urgently publish a credible plan that delivers significant and continuous improvement.

The changes to the USO that I referenced earlier include changes to Royal Mail’s quality of service targets, as the hon. Member for Bridgwater mentioned. They are intended to enable the business to more predictably deliver mail without delays, but I share his view that flexibility must ensure reliability, rather than lowering ambitions. Ofcom has committed to closely monitoring Royal Mail’s performance, and to ensuring that it meets the business regularly to have those conversations. It is evident from the contributions of hon. Members across the Chamber that Royal Mail’s quality of service has not been good enough. The Government have discussed that with the chief executive of Royal Mail, and I will do so again on behalf of the hon. Members who have raised issues today.

I will return briefly to the subject of the constituency of the hon. Member for Bridgwater. I know that there have been service issues because of resourcing difficulties in the Bridgwater, Burnham-on-Sea and Taunton delivery offices. I understand that Royal Mail is now actively recruiting staff to deal with that. Again, I will discuss that with the chief executive of Royal Mail next week. Royal Mail has publicly committed to delivering improvements to its quality of service, and is taking action to recruit additional frontline staff, improving delivery office efficiency and simplifying the network to make it more reliable and resilient. I am encouraged to see that Royal Mail is recruiting 20,000 temporary workers across the country to help deliver the Christmas items that we all expect during that peak period.

As I have set out, the Government remain committed to ensuring the provision of a financially sustainable and efficient universal postal service, one that is accessible and affordable for customers, and that works for workers and businesses. I fully recognise that delays in postal deliveries can have serious consequences for those, including small businesses, who rely on the post for important information. Now that Ofcom has made changes to the USO specification to ensure a modernised service, we need Royal Mail to work with its workforce and unions to deliver the service that we expect.

I hope that hon. Members will see Royal Mail’s service quality improve in the months and years ahead, but rest assured, I will continue to work with Royal Mail and Ofcom to make sure that that is the case. I emphasise that whatever criticisms we might have of Royal Mail, and whatever concerns we might have about the quality of service, we, across the House, are so grateful for the quality of service and the commitment of individual posties, who are an absolute lifeline to communities up and down the country.

Question put and agreed to.