Group Litigation Order and Post Office Process Review Schemes: Closure

Blair McDougall Excerpts

Tuesday 21st April 2026 Written Statements

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

In March 2023, the Department for Business and Trade formally launched the group litigation order compensation scheme to provide full and fair redress to the trailblazers who uncovered the Post Office Horizon scandal. I am pleased to confirm that, as of today, we have received full applications from over 95% of the 492 eligible claimants, and have settled nearly 90% of all claims. As we are nearing completion of the scheme, I am announcing today that any final applications must be submitted to the Department by 31 July 2026, ahead of the scheme formally closing on 31 December 2026. It is my determination to bring closure to this group for all the suffering they have endured, and I hope today’s announcement goes some way in achieving that. We have consulted claimants’ legal representatives and the Horizon Compensation Advisory Board about these deadlines and will continue to work with them if there are any claimants, for reason of vulnerability, who will need extra support to resolve their claim.

I am also announcing today that the post office process review scheme will close to new applications on 30 September 2026. This scheme is unrelated to the GLO scheme and to the Horizon system-related shortfalls more broadly; instead, PPR provides redress to postmasters for financial losses caused by other Post Office products, policies or processes. The scheme is run by Post Office Ltd and is open to all eligible former and current postmasters, the vast majority of whom should now have received an invitation to apply. Any postmaster who believes they are eligible but has not received an invitation should contact Post Office Ltd directly at: [e-mail]. This follows the closure to new applications of the Horizon shortfall scheme and the suspension remuneration review on 31 January 2026.

[HCWS1527]

Post Office Network Transformation Programme: Independent Investigation

Blair McDougall Excerpts

Wednesday 15th April 2026 Written Statements

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

Parliament was notified last year of the Government’s intention to commission an independent review into allegations surrounding the Post Office’s network transformation programme (2010 to 2019).

I can now update Members that the investigation has begun. Adam Tolley KC has been appointed to lead the investigation, supported by an independent legal team. The terms of reference for the investigation have been published online, and Members and their constituents are welcome to write to the investigation team at: [e-mail].

I will update the House on the investigation’s findings once the final report has been produced.

[HCWS1512]

Industrial Strategy

Blair McDougall Excerpts

Monday 13th April 2026 Written Statements

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

I wish to update Parliament on a package of significant measures and a major investment to drive forward the delivery of the Industrial Strategy, strengthen the UK’s advanced manufacturing base, and ensure the country remains a leading hub for business and investment in a volatile global environment. This builds on the statement made in January, which set out measures to support scale-ups, accelerate battery innovation, and reduce unnecessary regulatory burdens. Alongside this package, the Government will publish the latest quarterly update on delivery of the Industrial Strategy and confirm the re-appointment of Clare Barclay as Chair of the Industrial Strategy Advisory Council for a further term.

Delivering the Industrial Strategy with support for Advanced Manufacturing

We are backing the advanced manufacturing sector with over £700 million to help UK industry move faster towards electrification, create pathways into fulfilling, skilled careers and strengthen our supply chains. This will support up to 4,200 jobs, backing local communities and putting more money in people’s pockets.

At the heart of this package is a £380 million DRIVE35 grant to support the delivery of what will be one of Europe’s largest battery gigafactories in Somerset, with a frame of 100% British steel. This project, delivered by Agratas, will strengthen the UK’s battery manufacturing capability, support growth across the automotive and battery supply chains, and reinforce the competitiveness of the UK automotive sector as it transitions to electrification. The project is expected to support up to 4,200 jobs directly and a strong local skills pipeline, including apprenticeships and training in battery manufacturing and engineering, working with local partners such as the University Centre Somerset. It will supply batteries to Jaguar Land Rover, helping to anchor future electric vehicle production in the UK. This builds on previous Government action to support Jaguar Land Rover and its supply chain following the cyber-attack, helping to protect jobs across the automotive sector.

Backing business to transition, innovate, and compete

This investment sits within a wider package to help advanced manufacturing businesses transition, innovate and compete in electric vehicle manufacturing. This includes interventions from our DRIVE35 programme:

Announcing the winners of four R&D competitions worth £90 million, backing innovation across the UK automotive and battery ecosystem and supporting UK leadership in zero emission vehicle technologies, such as a £32 million project where JLR are partnering with semiconductor firm ARM to bring auto and tech firms together to advance software-defined vehicles technologies for EVs.

Funding of £100 million to help the automotive supply chain and support automotive suppliers to transition their systems and capabilities towards EV manufacturing, focused on the west midlands and north-east of England.

The package also includes the first round of multi-year R&D support through the battery innovation programme to back next-generation battery technologies and UK supply chain capabilities, with up to £22 million awarded—matched by industry—to UK-led R&D projects. We have also opened a round 2 competition, worth £25 million, to support business-led collaborative R&D. The package will support innovation in “breakthrough” battery cell materials, including novel cathode materials and solid-state batteries. It will enable UK battery firms to secure private investment and compete globally. This funding will support the development of a circular value chain in battery materials, mining, refining and recycling, and boost our economic resilience. We have also announced £1.4 million of connected and autonomous mobility pathfinder programme grants for feasibility studies exploring autonomous freight in Teesside, Sunderland and the Port of Tyne, as well as self-driving passenger services at the Wellcome Genome Campus in Hinxton, Cambridgeshire, at an NHS site, at an airport, and in London, advancing safer, more efficient, automated transport.

We are also expanding the Made Smarter adoption programme, doubling our investment up to £99 million over three years, to support manufacturing SMEs to adopt industrial digital technologies, growing local ecosystems and the significant sectoral strengths that are found across the English regions. Taken together, these measures will help firms invest in new capability, adopt new technologies, and build stronger domestic supply chains in strategically important sectors.

In addition, up to £16.44 million-worth of grants will be deployed from the Made Smarter innovation programme to drive the development of scalable, industrial digital technologies, improving productivity while reducing energy and resource use. The programme is designed to help manufacturing SMEs close the UK’s digitalisation gap by connecting innovators with real-world challenges and supporting solutions that boost productivity, resilience and sustainability.

Skills and jobs

The Government are also doubling down on creating a skilled workforce fit for the future and driving forward implementation of our £182 million industrial strategy engineering skills package. This includes £47 million of adult skills funding to train up the next generation of engineers and inventors, and we will be writing to Mayors shortly to allocate this funding to strategic authorities to ensure it is aligned with local needs.

This package also includes £1.8 million to expand engineering and construction T-level provision, and £8 million in capital funding to support clean energy engineering courses at levels 4 and 5. For example, Durham University will upgrade engineering laboratories and create a new flight controls lab to expand capacity in clean energy and advanced manufacturing, while Yeovil College will transform its engineering building with specialist equipment and redesigned teaching spaces to boost high-level skills in advanced manufacturing, clean energy, and defence engineering.

A new battery manufacturing apprenticeship unit has been launched, which will help meet the skills needs of Agratas’s new Somerset gigafactory. The unit will give employers flexible, targeted training to quickly build the specialist workforce needed for the UK’s growing battery sector.

Access to finance

This package also reflects a step change in public financial institution support to UK industry. The British Business Bank is increasing support for advanced manufacturing as part of our wider funding for the industrial strategy sectors. From this month, it will deploy the additional £4 billion of industrial strategy growth capital to support growth and investment, and build the ecosystem of specialist investment funds focused on industrial strategy sectors. UK Export Finance has already backed over £6.6 billion of advanced manufacturing investment over the last two years. This includes £128 million to support the export of two submarine rescue vehicle systems to the Indonesian Navy. The deal will inject over £67 million into the UK economy through British suppliers SMP Ltd and Forum Energy Technologies Ltd to manufacture these advanced vehicles in York and Bristol, safeguarding and creating jobs across the domestic manufacturing and defence industries. In the summer they will announce plans to go even further, supercharging UKEF’s ability to help UK companies tap into the power of international markets.

This package demonstrates the Government’s determination to compete for the industries of the future, strengthen resilience in critical sectors, and back investors who create skilled jobs nationwide.

[HCWS1490]

Corporate Re-domiciliation

Blair McDougall Excerpts

Wednesday 25th March 2026 Written Statements

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

I am pleased to announce that the Government are today launching a public consultation on detailed design proposals of an inward UK corporate re-domiciliation regime as part of our industrial strategy commitment to modernise company law.

The UK is a great place to locate and grow a business, with companies wanting to benefit from the business-friendly environment, world-class regulatory and legal framework, competitive corporate tax regime and extensive network of trade agreements. Under current processes, moving a company’s place of incorporation to the UK involves the creation of a new legal identity. This is costly, complex and can introduce commercial risks due to the need to transfer assets and contracts. An inward re-domiciliation regime, on the other hand, would enable foreign companies to transfer their place of incorporation to the UK while maintaining their legal identity, significantly reducing the disadvantages associated with the current routes. For some companies, the introduction of a regime would provide a practical and viable route to establishing a UK presence for the first time.

Economic growth is the No. 1 mission of this Government, and by making it easier for companies to move their place of incorporation to the UK, we will maximise opportunities for increased investment and skilled jobs. Companies moving to the UK will increase demand for professional and business services. In addition, the regime will support our plan to strengthen the UK’s position as the global location of choice for financial services firms to invest, innovate and grow. Both these sectors are among those identified as having the greatest growth potential in our modern industrial strategy.

To ensure that the regime is attractive, the regime will provide business with clarity and predictability, with proportionate and appropriate safeguards. Insolvent companies, or companies that are subject to specified sanctions—or whose directors, persons with significant control or members are subject to sanctions—would not be eligible, for example. Once a company has re-domiciled to the UK, it will be treated in the same way as a company originally incorporated in the UK, where all UK legal requirements would apply. Companies House will be responsible for operating the regime and will recover the costs associated with applications through fees.

The consultation will run for 12 weeks and may be of particular interest to multinational businesses, foreign incorporated companies, business representative groups, company law experts and professional services firms.

I will place copies of the consultation in the Libraries of both Houses, and it will be published on gov.uk.

[HCWS1447]

Corporate Civil Enforcement Regime

Blair McDougall Excerpts

Wednesday 25th March 2026 Written Statements

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

The enforcement activities of the Insolvency Service—tackling economic crime, disqualifying directors for corporate misconduct and winding up companies in the public interest—serve to protect market integrity. This, in turn, fosters economic growth by maintaining a trustworthy environment, conducive to investment and entrepreneurship.

A robust corporate enforcement regime capable of tackling all forms of corporate abuse is essential for providing a level playing field for legitimate businesses, so that they can thrive and grow. It encourages good corporate governance standards, provides the confidence to do business, and helps attract investment for companies based in the UK.

Following a comprehensive review of the corporate civil enforcement framework, I have concluded that while disqualifying directors and winding up companies remain important for addressing corporate misconduct, they do not, as they are, provide the flexibility needed to deal with today’s fast-moving and complex business landscape.

I am therefore publishing a consultation today that contains a range of options that would modernise the regime and add new flexibilities for dealing with varying degrees of misconduct. These options broadly fit into three categories:

Structural reforms

To modernise the enforcement framework, we could introduce additional tools to enhance flexibility and improve efficiency. These reforms would enable Government to address a broader range of corporate abuse, while supporting a more proportionate and targeted response to lower-level misconduct. The proposals seek to accelerate enforcement processes, speeding up the removal of individuals responsible for corporate abuse, and strengthening protections for the public and the wider marketplace.

Options include: introducing tailored restrictions for directors—as opposed to outright bans—when misconduct is due to ignorance, rather than an intent to commit wrongdoing; a faster process to ban directors from the marketplace where companies have been liquidated on public interest grounds due to causing harm; and updating and simplifying disqualification proceedings, by shifting defended cases from the courts to a tribunal model.

Information gathering powers

Strengthening the Government’s powers to seek and gather information necessary to support effective and efficient investigations into corporate abuse. This will ensure powers are fit for purpose, particularly in the light of the new powers introduced by the Economic Crime and Corporate Transparency Act 2023.



Procedural changes

Improving and modernising the current procedure for director disqualification. Making the processes more efficient and ensuring fairness and clarity for all parties.

Consultation next steps

The consultation invites general feedback on the options for reform, which will inform further policy development and identify preferred options. The consultation will be open for 12 weeks. I encourage those interested to respond to this consultation and use this opportunity to provide their views. The full consultation is available on gov.uk.

[HCWS1448]

Late Payments Consultation: Government Response

Blair McDougall Excerpts

Tuesday 24th March 2026 Written Statements

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

This Government believe that business is the driver of growth and wealth everywhere across Britain. A thriving private sector is the single most powerful engine for improving livelihoods and places. The UK has some of the best, most innovative businesses in the world, and the most talented leaders and entrepreneurs of any nation.

In turbulent times, this Government are backing business with a deliberately more active state that is going further than previous Governments to back businesses, tackling reforms that previous Governments neglected, and prioritising the strongest reforms in decades to get more cash in the bank sooner for Britain’s small businesses.

The role of business in the Britain we are building is not just to plug gaps in the finances left by the last Government. Only with a thriving private sector can we change the country for the better. We will be more interventionist than our predecessors in backing the British business community to build and scale great companies.

In that context, today we are publishing the Government response to the late payments consultation which ran from 23 July to 31 October 2025.

In the response, we set out the measures we will take forward to tackle the scourge of late payments, forming the most ambitious reforms in over 25 years and giving the UK the strongest legislative framework on late payments in the G7. These measures will help deliver on the Government ambition to make the UK the best place in the world to start, run, and grow a business.

Late payments cost the UK economy £11 billion each year and lead to the closure of 38 UK businesses every day. On average, each business owner affected by late payments wastes 86 hours each year chasing invoices, amounting to a staggering total of 133 million hours across UK businesses. This hurts productivity, damages supply chains and erodes cash flow.

The impact of the status quo is clear: wasted time and wasted resources, and too many businesses that struggle to pay their hard-working employees on time and invest for the future. Our measures tackle this problem head-on, driving productivity and investment, and freeing up cash so that businesses can survive, thrive, and grow.

The consultation received more than 850 responses from across the UK. We are grateful for the interest, time, and expertise that stakeholders have put in to help us get this right.

The proposals within the consultation received strong support. Respondents overwhelmingly agreed with the importance of paying smaller businesses quickly and on time. We will strengthen the powers of the small business commissioner, giving them powers to investigate, fine and adjudicate. We will introduce strong maximum payment terms of 60 days, mandatory interest on late payments, a time limit for disputes and increased board level scrutiny. We also propose to prohibit the deduction of retentions in construction contracts but, given the ambition of the policy, we will consult further on the impact of this measure before taking a final decision on implementation.

This Government will continue to work with businesses and organisations across the UK economy to make these reforms a success. These changes will complement the efforts of the vast majority of UK businesses already committed to excellent payment practice, and through arming smaller businesses against the scourge of late payments, improve productivity and cash flow.

We will make sure that small businesses are paid on time, every time.

[HCWS1436]

Horizon Family Members Redress Scheme

Blair McDougall Excerpts

Thursday 19th March 2026 Written Statements

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

On 8 July last year, my predecessor announced the Government’s intention to launch a redress scheme for postmasters’ family members who were most severely affected by the Horizon scandal. This statement provides further information to the House about the scheme’s form, scope and eligibility criteria. While the scheme remains focused on personal injury, we have made significant changes that will make it easier for more family members to qualify for redress.

This scheme follows the Government’s acceptance of recommendation 18 in volume 1 of the Post Office Horizon IT Inquiry report (that financial redress should be provided to close family members of those most adversely impacted by the Horizon scandal), and of similar recommendations made by the Horizon Compensation Advisory Board.

Over the past months, my officials and I have been working with stakeholders, including the Lost Chances group, Horizon redress claimants lawyers and the Horizon Compensation Advisory Board, to develop a fair approach to redress that recognises the difficulties that some people may find in providing evidence of the harm which they have suffered. In doing so, we have drawn on lessons from other Government schemes to ensure that this scheme delivers timely, accessible support, while minimising the potentially re-traumatising impact of a lengthy claim process.

The outline scheme announced by my predecessor focused on personal injury—which in many cases we expect to mean damage to mental health. That earlier version of the scheme would have allowed applications to be made based only on contemporaneous evidence of medical issues or a fresh assessment of an ongoing medical condition arising from Horizon.

Stakeholders have told us that very few people would be able to provide this type of evidence. In response, we have created an alternative route to redress for people whose postmaster relatives faced some of the most stressful specific consequences of the Horizon scandal (such as prosecution or bankruptcy) and were therefore more likely to have experienced significant harm. So long as we can confirm the event experienced by the claimant’s postmaster relative, we will not require them to evidence any further harm.

Because we are not asking such claimants for specific evidence of any harm for events-based claims, we cannot differentiate between claims. We will therefore offer flat-rate “recognition payments” to people who claim through this route. This simple approach may result in some individuals receiving an amount that differs from what they would have been awarded following the assessment of a personal injury claim. However, given the evidential problems, the alternative would have been to give them no compensation at all. Those who do have evidence will still be able to apply for an assessed personal injury claim and provide contemporaneous evidence of medical issues arising from Horizon, or a fresh assessment for any ongoing medical condition, as outlined by my predecessor.

I believe this enhanced scheme for family members is the best approach, striking the right balance between a low-evidence approach and an individual personal injury assessment to meet our original promise—and Sir Wyn Williams’s recommendation—to support family members of those most severely affected by the Horizon scandal.

I have today written to the Lost Chances group setting out details of our proposals. I am placing a copy of my letter in the Library of each House, and have copied it to the Chair of the Business and Trade Committee. The letter is published at this link: https://www.gov.uk/government/collections/horizon-family-members-redress-scheme

Restorative Justice

The Department’s response to volume 1 of the report of the Post Office Horizon IT Inquiry announced that with the Post Office and Fujitsu we had jointly embarked on a restorative justice project for postmasters, facilitated by the Restorative Justice Council. On 31 October 2025 the RJC published a report on the pilot phase of that programme, which set out what postmasters wanted from a restorative justice programme. They have continued to engage with postmasters in the intervening period.

The RJC is today publishing a second report which gives a further account of many postmasters’ terrible experiences of the impacts of this scandal, considers how a restorative justice programme can help, and describes what will now be delivered. As was always our intention, the programme is very much postmaster-led.

The Department, the Post Office and Fujitsu have agreed to support the programme both financially and practically for up to five years initially. Responsibility for funding will be shared between the three organisations. Fujitsu’s financing of the programme is separate from their contribution to compensation, which will be agreed once the Williams inquiry has reported.

I am placing a copy of the Restorative Justice Council report in the Libraries of both Houses.

[HCWS1420]

Social Enterprises and Community Ownership

Blair McDougall Excerpts

Wednesday 18th March 2026 Westminster Hall

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

I certainly will, Sir John. It is a pleasure to serve under your chairmanship. It is also a privilege to respond to a debate with so many passionate and proud speeches on behalf of local community enterprises and charities.

I am glad to have the opportunity to congratulate Leigh Spinners on all of its success so far, to thank the Rebuild Site in Carlisle, to raise a glass to the Black Bull in Gartmore, the Fleece Inn in the Cotswolds and the Brewers Arms in Worcestershire, to tell Cosham Community Kettle to put the kettle on for me at some point when I visit, and to highlight the Low Port Centre in Linlithgow, the Oxleathers in Stafford, the Central Football Foundation in Grangemouth, and so many others that make our communities what they are. I will also abuse my position as Minister to talk about Social Blend in my constituency. It is a remarkable social enterprise that provides not just fantastic coffee and food, but employment and a sense of purpose to adults and young people with additional needs and disabilities. I recommend a visit to anyone.

What underpins this, as my hon. Friend the Member for Stafford (Leigh Ingham) intimated, is a belief that everyone has something to offer. In the words, perhaps, of Robert Owen, “There are good hearts to serve men in palaces as in cottages.” The Government are passionate about the social enterprise sector and its contribution to society.

An estimated 347,000 social enterprises are helping to meet some of the toughest challenges in our society. When Governments and markets fail, and when others walk away, social enterprises step in and fulfil the needs of our communities. To support such organisations to deliver their invaluable work, and to help them to grow and to introduce even more innovation and services, the Government have introduced several measures over the past few months.

The Prime Minister wants the Government to work differently by putting partnership with civil society at the heart of everything we do. The civil society covenant embodies the ambition to recognise the value of civil society, and for every part of Government to partner and collaborate with civil society at every level, as hon. Members have asked for. At the civil society summit in July 2025, the Prime Minister said that he would give civil society

“a home at the heart of government”

and the newly established Civil Society Council will meet quarterly in Downing Street and be supported by a dedicated team in No. 10. The purpose of the Civil Society Council is to work in partnership with Government at the highest level to drive and oversee the implementation of the covenant, helping Government and civil society, including social enterprises, to design and deliver policies and services in genuine partnership.

DCMS is taking the lead on the local implementation of the covenant through the launch of the £11.6 million local covenant partnerships fund. Hon. Members asked for more support, and the fund will support local government, public service providers and civil society organisations to work collaboratively to tackle local policy priorities and better meet the needs of communities. In recognition of the need to diversify and unlock more income for the sector, the Government are delivering several strands of work that focus on ensuring that all organisations, including some of the smallest charities, are able to continue delivering impact and, where possible, to grow their operations.

Last summer, DCMS published the Government’s first-ever dormant assets strategy, which sets out our ambition to boost the reach and impact of the scheme. The strategy sets out how we will ensure the continued good governance of the scheme and, crucially, illustrates how the next £440 million tranche of funding will be distributed. That includes £132 million to benefit young people and £87 million for social investment. Part of that money will go towards providing small, flexible and affordable loans—the access to finance that hon. Members mentioned—to grassroots organisations.

My hon. Friend the Member for Southport (Patrick Hurley) spoke with evangelical zeal about the better futures fund, based on his deep experience in this area. We announced that £500 million fund in July 2025, and it is the world’s largest outcomes fund. It will support up to 200,000 children and their families over the next 10 years, and it will bring together Government, local communities, charities, social enterprises and philanthropists to give children a brighter future.

More broadly, I want to celebrate the remarkable growth of the impact economy, with recent reports estimating that it contributes a staggering £420 billion to the UK’s GVA, amounting to 15% of our GDP. The impact economy is a diverse system of purposeful organisations and capital, with the shared aim of delivering a strong economy in which everyone benefits. Social enterprises have a unique and powerful ability to innovate and to scale solutions to the big challenges that we face as a country, and the Office for the Impact Economy will continue to support closer collaboration between these organisations and Government.

I come to the second best thing to come out of Rochdale: the co-operative sector. [Interruption.] Someone just said “Lisa Stansfield”, which I think is unfair. We have an ambitious manifesto commitment to double the size of the co-operative sector, because we see co-operatives and mutuals as the key engines of inclusive and community-focused economic activity. Several hon. Members mentioned the need to increase the support and advice for co-operatives in order to meet that commitment. I work with members of our business hub network around the country, and they often tell me that as many as one in four people coming through their doors is looking for advice on co-operatives and community interest companies.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Minister is rightly talking about people who want to set up co-operatives. I wonder whether he might talk to his colleagues in the Department for Education about the role that co-operative education should play in the curriculum through history, business studies, and personal, social, health and economic education. Young people need to understand what co-operative, social enterprise and mutual models look like, so that they instinctively think about setting up one when they go into the world of work, rather than being talked into doing so later on.

[Blair McDougall]

My hon. Friend makes an important point. We are having a wider conversation at the moment about how enterprise education in general should go through people’s experience in school, and the co-operative and social interest models should be part of that.

The co-operative development unit in MHCLG is helping to develop guidance and partnering with local authorities to see how we can improve access and advice. On community ownership, we are committed to communities and we are going further than ever to ensure that they have powers to take advantage of the assets that they value. My hon. Friend the Member for Stroud (Dr Opher) asked specifically about the community ownership of power. He will be aware that the local power plan announced by colleagues in the Department for Energy Security and Net Zero is designed to address the barriers to community energy ownership and is backed by £1 billion to fund those local projects.

At the beginning of the debate, my hon. Friend the Member for Leigh and Atherton (Jo Platt) asked whether the Government are willing to back local areas in taking control of the things that they value and that are important to them. I hope some of the measures that I have set out show that the Government’s answer is a resounding yes.

Royal Mail: Performance

Blair McDougall Excerpts

Wednesday 18th March 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 Twigg. I thank the hon. Member for Exmouth and Exeter East (David Reed) for securing today’s important debate. He spoke about falling confidence in Royal Mail. I think the debate has shown that there is growing anger about failures of service. My hon. Friends the Members for Worcester (Tom Collins), for Hartlepool (Mr Brash) and for Sheffield Central (Abtisam Mohamed) and others spoke about how, when raising those concerns on behalf of constituents, they heard a completely different version of events in response. That has added to the sense of the frustration, particularly when hon. Members are so connected to their local posties, who understand what is happening on the ground.

I join others in paying tribute to our hard-working posties across the country. The hon. Members for Yeovil (Adam Dance) and for Keighley and Ilkley (Robbie Moore), my hon. Friend the Member for Leeds East (Richard Burgon) and others rightly said that any criticism of Royal Mail service is not a criticism of the posties themselves.

The Government remain absolutely committed to the universal postal service, which is an essential part of our economic infrastructure. It can and should be delivered. Hon. Members have raised concerns about the impact of service failures on the work of democracy. They have talked about bank cards not arriving and the isolation that causes. The hon. Member for Bromley and Biggin Hill (Peter Fortune) spoke about the human impact of missed hospital appointments, and there are also consequences for legal hearings and business deals.

I confirm to my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley) that I am also not getting love letters through the post—

[Peter Prinsley]

Give it time.

[Blair McDougall]

Seriously, though, it is galling that Royal Mail is increasing the price of its services but is not meeting delivery targets. Our constituents rightly expect that, if they are paying more, they should get the service and deliveries on time. It is simply not good enough.

[Jim Shannon]

The Minister is always very responsive; I appreciate his responses today and in the past. I spoke about a person who applied for PIP and found that there was a delay in the post. That young boy, a type 1 diabetic, was denied one month of his benefit as a result. Will the Minister please look at that?

[Blair McDougall]

I will happily look at that. It is another example of a service that is simply not good enough.

As was mentioned, I recently met Royal Mail’s chief executive to press these issues directly. He was left in no doubt about the level of anger and concern across the House, and he was clear that the service is not where he wants it to be. He gave me a firm commitment that he will work towards restoring confidence in the service.

Where service has fallen short locally, whether due to staffing pressures, which the hon. Member for Upper Bann (Carla Lockhart) mentioned, operational challenges or external disruption, customers need to see sustained and structural improvement, not just short-term fixes. I understand that the hon. Member for Exmouth and Exeter East has met Royal Mail to discuss these issues. I have been advised that there are currently three vacancies in the Exmouth office, and I expect that Royal Mail will fill them to ensure there is an improvement in service locally.

Across the country, our constituents deserve visible improvements in reliability, and that expectation underpins every discussion that I and other Ministers have with Royal Mail. That is why, before the takeover of Royal Mail, we secured significant commitments from the new owners of the business, including a commitment to prevent dividend payments until quality of service improves.

As many hon. Members said, service improvement is also intimately linked to workers’ terms and conditions and the reform of Royal Mail’s operation. It is critical that the Royal Mail workers are on board with the operational changes, and that their experience informs that work. The Government continue to engage with EP Group on that; that is why my right hon. Friend the Secretary of State convened a joint meeting with the owners of EP Group and the CWU last month to help to unblock the outstanding issues. That engagement continues.

Hon. Members also referred to my detailed discussion with Ofcom last week about its expectations of Royal Mail and the steps it is taking to protect consumers. I highlighted hon. Members’ significant concerns about the delivery performance and the negative real-world impact that that is having on our constituents. It is fair to say that Ofcom has heard the strength of concerns, particularly those expressed in the Chamber last week. One outcome of that meeting is that Ofcom is clear, as it has been for some time, that Royal Mail is required to publish a detailed improvement plan that results in significant and continuous progress, and that it expects that one should appear within days of an agreement with the union. Where failures continue, Ofcom will not hesitate to act again, and last year’s £21 million fine was a clear signal.

We are in a context where, as has been said, the performance of many other parcel providers makes Royal Mail’s performance look positively glowing, and Ofcom is also looking at that wider context. None of us is blind to the wider context and the structural pressures. Letter volumes have halved over the past decade. As hon. Members have said, to ensure that the USO is sustainable, Ofcom has made changes to Royal Mail’s obligations.

However, as my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) made clear, those changes and reforms cannot be imposed from the top down. Royal Mail must work constructively with its workforce and unions to ensure that operational changes translate into better services for customers across the country—a point also made by my right hon. Friend the Member for Oxford East (Anneliese Dodds), and my hon. Friends the Members for Stafford (Leigh Ingham) and for Glenrothes and Mid Fife (Richard Baker).

There is wisdom in every sorting office; staff there understand how the business works. We have taken a close interest in the negotiations, the new operating model and workers’ conditions. I mentioned that the Secretary of State recently met with EP Group and the CWU; a further meeting is scheduled for tomorrow. I am hopeful that Royal Mail’s owners and the union will work together in the interests of Royal Mail’s employees, its customers and the business.

Several hon. Members raised concerns about the impact on postal votes. We have sought strong reassurances from Royal Mail on that issue. There have been meetings with the chief executive of the Electoral Commission to discuss plans for the upcoming elections, and a similar meeting is taking place in Scotland with Ministers there. My hon. Friend the Minister for Building Safety, Fire and Democracy is having a further meeting with Royal Mail to discuss postal votes, and we are leaving Royal Mail in no doubt about our expectations in that space.

[Luke Taylor]

It is encouraging to hear that the Government have sought reassurances, but nothing short of a fundamental revolution in my local delivery office will see postal votes delivered even within the weekend on which they are expected to arrive. Can the Minister detail what those reassurances involve? Do they require additional resource to be provided to the delivery offices so that they can pay for the inevitable overtime or additional staff on those dates? Similarly, when the postal votes need to get back to our town halls, what will be done to make sure that that end of the process also happens over a period of three or four weeks?

[Blair McDougall]

Obviously, part of ensuring that the obligations around postal votes are maintained is making sure that the resource is there on the ground to do that. Another part of it is also the prioritisation of postal votes within the service. There are existing structures for that, such as doing sweeps of boxes. I reiterate that the Government will continue to hold Royal Mail to account, will support strong and independent regulation by Ofcom and will press urgently for the improvements that customers rightly expect to see.

[Andy McDonald]

Just before the Minister sits down, can he help me with a couple of things? The reduction in terms and conditions for new entrants into our sorting offices is causing great problems. People are leaving within days and weeks, so there is an issue there. Similarly, in this competitive landscape, we have other providers working on the basis of bogus self-employment. Given that we approach this issue on a whole-of-Government basis, rather than just in silos, I wonder whether we are looking closely at the damage that this situation is causing. I think particularly of the £10 billion that goes uncollected through bogus self-employment, which could enhance the coffers of the Treasury, among other things, and provide people with secure and solid work. As it stands, we have insecure and fragile work, both in Royal Mail and in the private sector that competes with it. Surely this is the worst of all worlds. A thorough approach is needed. I am yet to hear the Minister tackle the key issue raised by many hon. Members from the Government Benches: that we should be looking at the option of public ownership. Will the Minister please address that?

[Blair McDougall]

Our focus at the moment is on getting the business on to a sustainable footing. That is about the negotiations on the very terms and conditions that my hon. Friend raises. As I mentioned, Ofcom has put on notice those other parcel providers. That is primarily about the poor quality of service that we see from many of them, but when we talk to Royal Mail and the union—as I am sure my hon. Friend has done—they will point out that sense of better employers being undermined by those working practices. He has been a constant campaigner in that respect.

I thank all hon. Members for their contributions to today’s debate. I reassure them that the specific localised issues that they have raised will be covered in ongoing engagement with Royal Mail and Ofcom, along with the bigger structural conversation with the union and owners. I close by again paying tribute to the posties who do an extraordinary job across the country, and stress again that none of the criticisms today are laid at their door.

Oral Answers to Questions

Blair McDougall Excerpts

Thursday 12th March 2026 Commons Chamber

[Mr Speaker]

We’ve made it!

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

It was worth waiting for. We are clear that Royal Mail’s service performance has not been good enough. I met the sector’s independent regulator Ofcom yesterday to stress the widespread concerns among hon. Members about service standards. My hon. Friend has deep experience in this area, and I welcome his engagement with the main delivery office in Corby, where Royal Mail tells me that it is recruiting nine new postal workers to support the timeliness and quality of its postal services.

[Lee Barron]

Quality of service in the Royal Mail has been at shocking levels over recent years. Considering that Royal Mail is legally obliged to deliver a universal service and keep our communities connected, will the Minister join me in calling on Royal Mail’s owners to honour their agreement, end the two-tier workforce, and bring new entrants’ terms and conditions up to the same standard as those of substantive Royal Mail employees? Fifty per cent of new entrants are leaving the service within a year, which is leading to a decimation in the quality of service.

[Blair McDougall]

My hon. Friend is correct to highlight that the service quality issues are linked directly to workers’ terms and conditions. It is precisely because we take that connection so seriously that the Secretary of State convened the meeting between the unions and the owners of Royal Mail. Ofcom made it clear in our meeting yesterday that it expects the plan for improvements in quality of service to be in place within days of an agreement being reached with the unions, and we will certainly hold Royal Mail to that.

[Ian Roome (North Devon) (LD)]

Does the Minister agree that by being asked to focus on parcels over letters, and having overtime hours for deliveries restricted, many hard-working postal workers will feel that public trust in Royal Mail is being undermined?

[Blair McDougall]

I discussed the prioritisation of parcels with Ofcom yesterday. It had previously investigated the matter, and it is fair to say that it has heard the widespread concern around the House. If Ofcom continues to be concerned, it will not hesitate to investigate again.

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

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

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

Fuel duty is currently frozen. The key thing we can do to make sure we deal with this instability in energy prices is de-escalate in the region. I remind the hon. Member that his party has been calling for us to join the war.

[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

T4. I am a proud Labour and Co-operative MP. Co-operatives play a really important role in our economy, building a fairer and more resilient economy that gives workers and communities a stake in the businesses they rely on. This Labour Government have a world-leading commitment to double the size of the co-operative sector. Can the Minister update me on the progress towards achieving that ambition? What further measures are being brought forward to help co-operatives grow?

[Blair McDougall]

My hon. Friend is absolutely right. Co-operatives create a really important sense of connection at a time when people feel disconnected, but co-ops and mutuals are also more resilient and more productive. That is why we have made the commitment she references. Our call for evidence has closed, and we are working on the proposals that will flow out of that. I really welcome the news this morning that the John Lewis bonus is returning and congratulate it on its results.

[Ian Roome (North Devon) (LD)]

T5. Many small businesses in my constituency are gearing up for the busy tourist season that is just around the corner. What steps are the Government taking to support small businesses in the south-west, to help them make the most of their biggest window of opportunity over the summer?

[Blair McDougall]

Our small business strategy sets out the range of measures we are taking to support small businesses. That includes an increase of £4 billion in the finance available to businesses, so that they can invest to take advantage of those opportunities. We will also bring forward the strongest proposals on late payments, to improve cash flow to small businesses, as well as cutting red tape, so that they can take advantage of the opportunities the hon. Member describes.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

T6. I wish my constituents a happy Great Grimsby Day, to commemorate the signing of our charter in 1201. UK titanium dioxide production like that at Tronox is under threat from aggressive Chinese practices, funnelling cheap product through companies that they buy, run down and hollow out, circumventing protective levies. What is the Minister doing to ensure a level playing field, so that we do not see industry, skills and jobs draining out of the UK?

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[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

The Select Committee recently flagged that small businesses in our country now face pandemic-level pressures. In April, standing charges for energy are set to rise by 60%, with no price cap protection. Now, soaring oil and gas prices threaten to be the final straw for thousands of SMEs. Will the Secretary of State make an urgent assessment of the risk of soaring energy prices, and give a clear account of how we will keep the SMEs that keep this country running in business?

[Blair McDougall]

My right hon. Friend is absolutely right. We have taken action through the British industrial competitiveness scheme, which is a downpayment on exactly the sort of support he describes. We are constantly working on ways to cut costs for small businesses, and I am sure we will work with the Select Committee on that.

[Tessa Munt (Wells and Mendip Hills) (LD)]

Last time we were here for Business and Trade questions, I asked about exports of paraquat—the use of which is forbidden here—to other countries, and I live in hope that I will get an answer to that question. To update the ministerial team, Syngenta—the company that makes paraquat—put out a press release on 3 March to say that it would stop production this year. May I therefore expand my previous question to ensure that the response includes the export of pesticides and other products whose use is banned in the UK?

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[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

I thank the Minister for speaking to me about the poor postal service in Dargavel Village in Bishopton. I know he is working hard to resolve matters and answer questions and had meetings yesterday, and I thank him for that. However, as he will appreciate, this matter is of particular importance in Scotland due to the elections on 7 May, because postal votes will be issued soon. In Scotland we have an NHS with significant waiting lists, and we cannot have people missing medical appointments, so on behalf of residents of Bishopton in particular, may I stress the urgency of this matter?

[Blair McDougall]

My office manager lives in Dargavel Village, so I have a person incentive to ensure that the service improves in the area my hon. Friend represents. We spoke about it yesterday; we have called in Royal Mail, we have brought together unions and management and we had a meeting yesterday with Ofcom to stress that things have to improve. Specific meetings are taking place on postal votes in Scotland, and we have sought assurances that they will not be impacted by the problems with the quality of service.

[Dr Al Pinkerton (Surrey Heath) (LD)]

Yesterday I met representatives of the British Chambers of Commerce, who relayed the profound concerns of the UK automative industry that it might be excluded from the European Union’s proposed industrial accelerator Act. Nissan and Honda have already broken cover to say that their futures may be uncertain unless they are included in the “made in Europe” rules. What is the Secretary of State doing, with his Front-Bench team and across Government, to ensure that the UK automotive sector is not placed at a competitive disadvantage as a consequence of those measures?

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[Max Wilkinson (Cheltenham) (LD)]

High streets are a key concern for us all in this House. On the Promenade in Cheltenham we have Cavendish House, which was a cherished retail centre for 200 years. [Interruption.] The hon. Member for Rhondda and Ogmore (Chris Bryant) remembers it. Now it is empty; Mike Ashley’s Sports Direct left and now we have a big, empty building owned by Canada Life. Does the Minister agree that the big pension and investment companies need to pay more respect to our high streets and bring forward planning applications to redevelop and regenerate as soon as they possibly can? We should not be left waiting for as long as we have been.

[Blair McDougall]

My hon. Friend the Member for Halifax (Kate Dearden) mentioned a moment ago that we are working on a new high street strategy, which will seek to deal with some of the issues the hon. Member mentioned. We want investors to step up, but we also have a responsibility, through planning reform, to make it easier to regenerate the types of areas he described.

[Euan Stainbank (Falkirk) (Lab)]

Given the global energy crisis, manufacturers reliant on gas will struggle with the recent spikes in energy costs. Will the Secretary of State confirm whether his Department is considering a transitional dual fuel discount, alongside the British industrial competitiveness scheme, for industries that will continue to use gas for the foreseeable future?