Royal Mail: Universal Service Obligation

Blair McDougall Excerpts

Wednesday 11th March 2026 Commons Chamber

[Ian Lavery (Blyth and Ashington) (Lab)]

(Urgent Question): To ask what assessment the Minister has made of the impact of Royal Mail’s failure to meet its universal service obligation on service users’ wellbeing and on the company’s recent decision making, which has contributed to this situation.

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

I thank my hon. Friend for raising a question that I know is on the minds of hon. Members across the House. The Government have been clear that Royal Mail’s service has not been good enough, and we recognise the terrible impact that delayed time-sensitive deliveries, particularly relating to medical and financial matters, can have on the users of postal services, especially vulnerable users.

Obviously, Royal Mail is a private company and Ofcom, as the independent regulator for postal services, secures the provision of the universal postal service and sets and monitors Royal Mail’s service standards. As part of that monitoring regime, Ofcom publishes annual post-monitoring reports that consider developments in the sector and users’ experience of postal services, as well as the complaints and compensation data that Royal Mail is required to publish.

I have regular discussions with senior officials from Ofcom as the regulator, and in fact I am meeting Ofcom later this afternoon to discuss these concerns. Ofcom fined Royal Mail £21 million in October for failure to meet standards for 2024-25. This was double the previous year’s fine and the third consecutive annual fine for poor performance. Ofcom continues to monitor Royal Mail’s performance carefully to ensure that it is providing the service that customers expect. It has told Royal Mail that it must publish and deliver a credible plan that delivers significant and continuous improvement.

Ofcom is the regulator, but in response to concerns raised by hon. Members across this House, I met Royal Mail’s chief executive officer, Alistair Cochrane recently to set out the volume of complaints reporting service delays that I had received from colleagues.

In addition to that meeting, the Secretary of State has met Daniel Křetínský, the CEO of Royal Mail’s parent company EP Group and chair of Royal Mail’s board, to raise concerns about Royal Mail’s performance. Senior officials from Ofcom met Mr Křetínský that same day. The chief executives of Royal Mail and its parent company agree that there is more to do to meet service delivery targets and improve stability and reliability for customers. I know that hon. Members will continue to raise their concerns about the service in their areas, and for my part, I will continue to raise this matter, because the current situation is simply not good enough.

[Ian Lavery]

I thank my hon. Friend for his answer, but this goes beyond the delay of a few inconsequential letters. It is not simply a case of receiving post; it is about that being timely and about sending post as well. In my constituency, these failures have led to people missing medical appointments and having financial issues, and to the hindering of democratic participation. One of my constituents missed urgent medical correspondence, turning a routine appointment into a potentially life-threatening emergency. It is not acceptable.

This is happening up and down the country in every single constituency. Allegations from within Royal Mail suggest that these failures may be intentional, designed to pressure the Government into weakening or removing the USO requirements. Royal Mail’s recent letter to the Business and Trade Committee denies operating a parcels-first policy, contradicting repeated internal testimony. It flies in the face of local evidence from the workforce. The letter also reiterates calls for USO reform, reflecting a long-running corporate direction. Over the past few years postal workers—key public servants, who were heroes during covid—have seen their terms and conditions eroded to the point that some can no longer buy additional holiday because doing so would take their pay below the minimum wage.

The Government need to take serious action against Royal Mail. Is it not an option to bring Royal Mail back under public control? This is approaching a situation where one of our constituents will lose their home, their health or their life through these persistent failures. The Government can and must take steps to maintain this critical national service.

[Blair McDougall]

I think my hon. Friend’s anger is shared by hon. Members around the Chamber when they hear the stories of people not just missing hospital appointments, but finding themselves with county court judgments and in other such situations that are entirely not their fault and due to failures of delivery. We have told Royal Mail it is not good enough, the Select Committee has told them it is not good enough, and Ofcom has told them it is not good enough. The seriousness with which we take this issue is exemplified by the fact that, as I said, the Secretary of State has convened that meeting. I have called in Royal Mail and, as I mentioned a moment ago, I am meeting Ofcom later today to raise exactly the issues that my hon. Friend raises.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

Thank you, Mr Speaker, for granting this urgent question. I congratulate the hon. Member for Blyth and Ashington (Ian Lavery) on securing it. We can see from the number of Members who are interested in this topic just how serious it is across all our constituencies. I can testify to the fact that I have had an enormous amount of casework on this issue, which started just before Christmas, involving hospital appointments being missed, and children’s birthday cards, condolence cards for recently widowed individuals and postal voting forms not arriving. This is an absolutely critical issue.

I reiterate that the universal service obligation is an obligation. It is an obligation set out in statute, and it is an obligation to every household in this country. We can all testify to the fact that it has been systematically broken, and that the turning point was when the new owner bought Royal Mail, with this Government’s approval, in April 2025.

The letter from Royal Mail received by the Business and Trade Committee yesterday revealed that over 200 million letters have been delivered late this year. In addition to the meetings the Minister has listed with Ofcom, what assessments has he made of all the stress being caused to our constituents and the impact on people’s wellbeing? Has he had a critical discussion with Ofcom, because it appears that it is not really doing its job as a regulator? The public are paying more but getting less, and the fines he has listed do not reflect the deterioration we have seen recently. In my discussions with Royal Mail, it has said that parcels overwhelm the service at Christmas, but that situation is carrying on into March. Is it not the reality that parcels are much more—

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[Mr Speaker]

Order. We have had enough—I don’t need that backchat. I call the Minister.

[Blair McDougall]

I hope that the hon. Member can tell from my body language and tone that I share the anger and frustration of Members across the House. As I mentioned, I am meeting Ofcom later today to raise the very issues she mentions. I slightly take issue with the year zero approach she took. There are very long-standing issues with Royal Mail driven—in fairness—by the changes in consumer habits and the things we are sending and not sending any more. She mentions the new ownership. As part of that deed of undertaking, this Government got the assurance from the new owners that they could not take value out of the company until service improved. That shows that we take this matter seriously.

[Lee Barron (Corby and East Northamptonshire) (Lab)]

I refer Members to my entry in the Register of Members’ Financial Interests.

It is not just the customers who are rightly angry; it is postal workers as well, because they take pride in their job and the service they give. The last time I was in Corby delivery office, six deliveries never went out that day. The time before that, a postal worker volunteered to cover his own delivery on his day off. He was told that he could not, and when he went back in the day after, the work was still there; the delivery had not gone out. We now have a two-tier workforce, which is leading to a recruitment and retention crisis, and it is a standing joke in the job that the quickest way to get a letter delivered is to put it inside a parcel. Does the Minister agree that instead of Royal Mail imposing top-down changes by people who have never done the job before, it should listen to its workforce, sit down with the union and sort this mess out?

[Blair McDougall]

My hon. Friend gives me the opportunity to do what I have not done so far, which is to say that whatever criticisms hon. Members across the House have, they are in no way a critique of the work of our heroic posties up and down the country. I mentioned earlier that the Secretary of State brought together management and unions; Royal Mail is a private company, and we are not seeking to insert ourselves and become mediators, but that was a signal of how seriously we take this matter and how seriously we take the need for management and the unions to come together and address, through mutual understanding, exactly the issues he raises.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

In each year since 2023, Royal Mail has been fined by Ofcom over delivery delays, amounting to nearly £40 million. Following recent announcements, it would not surprise me if it were fined again in 2026. When Royal Mail was reprimanded in 2023 and 2024, its leadership promised that reforms would be made to improve its services, but following the £21 million fine in October 2025, the company said it could not publish its improvement plan until negotiations with the Communication Workers Union concluded.

The takeover of Royal Mail, which this Government supported, seems to have done nothing to improve the service so far. Over the past several years, an average of roughly one in four first-class letters arrives late, and recent reports suggest that 219 million letters may arrive late this year. These letters are sometimes urgent and hold important information, so it is clear that Royal Mail is repeatedly failing to meet its universal service obligation. Despite that, its stamp prices have consistently risen. That includes next month’s planned rise of 10p to the cost of first-class postage, taking the cost of a stamp to £1.80. The sorry saga of Royal Mail has gone on for far too long. Does the Minister believe that the British public should be paying more for their postal service, despite Royal Mail repeatedly failing to deliver their letters on time?

[Blair McDougall]

Paying more for postage is obviously part of the journey towards financial sustainability for Royal Mail as a critical piece of national infrastructure, but I absolutely agree with the hon. Lady that if our constituents are paying more for their stamps, they expect those letters to arrive, and it is not good enough if they do not. As I said, I am meeting Ofcom later on. It has asked Royal Mail for an improvement plan, which we think is long overdue. One issue that I will raise with Ofcom is progress on that improvement plan.

[Chris Webb (Blackpool South) (Lab)]

I declare an interest as a proud son of a local postie. We know that this is not the fault of the workers; they work day in, day out to get letters out, but are being told to prioritise parcels. Like many Members, I tried to go to my local mail centre just before Christmas—I know that you do the same, Mr Speaker—but I was denied access. An excuse was given, and the visit was never rearranged. Workers in that centre said to me, “They are trying to hide how bad the mail centre is from you, the local MP.”

Will the Minister tell the House and my constituents how we can turn this situation around? I fundamentally disagree with the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), who said that this started with the new owners. It started with privatisation—end of. How can we get the service back on track? Will the Government consider nationalising it so that our residents can get the letters that they desperately need for their appointments?

[Blair McDougall]

I am troubled to hear that my hon. Friend has not been granted access to talk to his local sorting office. I think visiting the sorting office at Christmas and other times is a diary staple for all MPs—it is a really important part of the job. He refers to the anger that posties themselves feel about this. It is not just a job for them. They feel that this is a service, and they recognise as much as anyone else that this situation is simply not good enough. Ofcom examined the prioritisation of parcels a few years ago and found no evidence that it was a central policy, but I have heard stories from so many Members about the prioritisation of parcels, so I intend to raise it with Ofcom this afternoon.

[Mark Pritchard (The Wrekin) (Con)]

I met the Minister some weeks ago and suggested that he might have to come back to the House if Royal Mail had not improved its services. May I thank you, Mr Speaker, for granting this urgent question and the Westminster Hall debate next week, which was secured by another Member?

I raised this issue on the 13 January as a point of order, as you will know, Mr Speaker, and clearly the problem has got worse rather than better. I put on record my thanks to all posties. I think the whole House would like to thank them for all their work in our constituencies. This situation has had a huge social and economic impact on people throughout our constituencies, but what concerns me is that the Minister has referred to being unable to intervene in a private company, and the regulator is of course independent. So what can he do? If there is nothing he can do, perhaps he will come back in a few weeks’ time to repeat that there is nothing he can do, but how does that help people who are waiting for medical results and other important information?

[Blair McDougall]

That is a very fair question. As I mentioned, the Secretary of State brought together the ownership and management to stress the need to get an agreement on reforms to improve service standards. Those things are all connected. I have stressed, in no uncertain terms, my dissatisfaction with current levels of service. On NHS letters, I and Department of Health and Social Care colleagues are pressing to ensure that more NHS bodies take advantage of the barcode system, so that those letters are prioritised. Royal Mail is a private company, but we are exercising the pressure that we can in order to ensure that standards are improved.

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

My understanding is that letters must not be treated less favourably than parcels, but that is happening at the moment through internal Royal Mail targets. That is the case at the Fotherby Street sorting office in Grimsby, where a tracked-first policy is in place, meaning that parcels take priority, while letters and non-tracked mail are not prioritised. First and second-class cards and letters are left sitting in frames for days and weeks. That builds up, as other Members have said.

Route revisions are also an issue for posties, some of whom regularly walk 30,000 to 40,000 steps a day. That is causing exhaustion, injury and illness. It is not acceptable in any way for the Government to say that they cannot do anything. What will they do to force Ofcom to take action that will get things moving and change a policy that leaves people’s letters sat in their frames for days?

[Blair McDougall]

My hon. Friend voices her frustration—which is shared across the House—about the disconnect between what she is hearing from local sorting offices and the stated company policy. As I say, I will raise the prioritisation of parcels with Ofcom later. On the wider issue of working conditions for posties, the Secretary of State has brought together the owners and the company to stress the importance of progressing those issues and getting to a situation in which quality of service improves and the workforce feel properly rewarded and respected.

[Simon Hoare (North Dorset) (Con)]

The postal delivery landscape is a fast-moving one, as the Minister will recognise. That is evidenced by the fact that Denmark very recently ended its postal service entirely—everybody now has to use a private courier. What weight does he put on the words of Royal Mail when it says that it recognises the problems and is working hard—does he take that in good faith? A critique from Royal Mail, which clearly recognises that there are problems, is that Ofcom’s slow responses to Royal Mail suggestions are disjointed from a fast-moving landscape in a very competitive sphere. When he meets Ofcom this afternoon, will he urge it to respond speedily and progress issues as they manifest themselves?

[Blair McDougall]

I thank the hon. Gentleman for that helpful and practical suggestion. I will certainly add it to the agenda for the meeting, and report back to him on the outcomes of those discussions.

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

I thank my hon. Friend the Member for Blyth and Ashington (Ian Lavery) for asking this urgent question because, as he will know, too many constituents are suffering this situation. When this first started, I asked Royal Mail why it was happening. I got polite replies, but frankly, at this stage, fine words butter no parsnips. We really need some action. May I urge the Minister to push Ofcom to take action on this issue?

[Blair McDougall]

My hon. Friend is, as ever, a doughty campaigner for everyone in the communities she represents. I will certainly be pressing Ofcom on these issues, and I will continue to press Royal Mail directly as well, stressing that we want to see an improvement in standards. The current standards of delivery are simply not good enough.

[Helen Morgan (North Shropshire) (LD)]

In rural parts of the country such as North Shropshire, where broadband, mobile signal and public transport are poor, people really depend on their postal service. Constituents have contacted me to say that they have missed court documents and NHS letters—important things that they need in order to get on with their lives. I have visited the sorting office. Beyond the prioritisation of parcels, which posties have told me about, the rounds are too long and working conditions for postal workers are not good enough, so there are issues in recruitment and retention. What can Ofcom do to ensure that Royal Mail puts in place the resources to ensure that letters can be delivered on time in rural places, like North Shropshire?

[Blair McDougall]

Unfortunately, the story that the hon. Lady tells is familiar, because I have heard it from so many hon. Members around the Chamber. As I say, we have been bringing together workforce and management for talks on reforms to get the business on to a sustainable footing and improve service quality. We will bring that together. I will raise the issue of prioritisation of parcels with Ofcom this afternoon.

[Navendu Mishra (Stockport) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. I thank all postal workers in Stockport and across the UK. It is important to highlight that it was the coalition Government—the Liberal Democrats and the Conservatives—who privatised Royal Mail. I ran an online survey about Royal Mail services in my constituency. Some 89% of respondents said that they were unhappy, angry or disappointed by the service in Stockport. There was one example of mail not being delivered for almost two weeks, until it was all delivered on the same day, meaning that important information and appointments were missed. What will the Minister to do improve services for the approximately 3 million people in Stockport and Greater Manchester?

[Blair McDougall]

I join my hon. Friend in paying tribute to posties in Stockport and Greater Manchester. Like posties all across the country, they go the extra mile in incredibly difficult circumstances. As I mentioned, we are bringing together unions and management for talks, to make sure that we get to a resolution and progress the future of the business. We are also pressing Ofcom on the enforcement action that it can take to progress the improvement plan that Royal Mail has committed to producing.

[Tom Tugendhat (Tonbridge) (Con)]

Just recently, Royal Mail in Tonbridge introduced a new working model that has been, quite frankly, an abject failure. I welcome the hon. Member for Blyth and Ashington (Ian Lavery) asking this urgent question, because this is quite clearly a matter for not just one constituency or community, but the whole country. I am grateful to the Minister, who is assiduous in his role, for taking it up. Will he raise with management that while we all recognise that this is about not just privatisation or ownership, but the change in the way that people use the post, and our use of emails and so on, the problems have a very real effect on people’s lives, particularly in communities like mine in Tonbridge? I am not the only one who has missed an appointment because the letter arrived weeks, or even months, after I was supposed to attend.

[Blair McDougall]

I know from my talks with officials that the right hon. Gentleman has been in discussions about the issues in Tonbridge, and that Royal Mail is seized of those. He is absolutely right. Members have mentioned hospital appointments; it is worth mentioning the important post that we hon. Members send to often very vulnerable constituents. That is a reminder that the post is a central part of our national life and economy, and we have to see it improve.

[Natasha Irons (Croydon East) (Lab)]

I thank my hon. Friend the Member for Blyth and Ashington (Ian Lavery) for securing this urgent question. In my constituency, we have had a massive uptick in complaints about not only letters being delivered late, but priority service not happening when people have paid for it, and constituents being advised to collect post from delivery offices without prior notification of an attempted delivery; essentially, they are asked to become their own Royal Mail. Having met local workers over Christmas, I know that they are working incredibly hard to keep on top of this, and they are just as frustrated as my residents. My biggest concern is that when Members have raised the issue with Royal Mail, its response has been, quite frankly, rude, dismissive and a bit lacklustre. Will the Minister please outline what he will do to ensure that postal services are protected in my community, and communities across the country?

[Blair McDougall]

I thank the posties in Croydon for their efforts; they do an extraordinary job. My hon. Friend hits the nail on the head. We sometimes might have lower standards for other delivery operators in the economy, but we expect a certain level of service from Royal Mail. When people are paying more for stamps, or are paying for special delivery, they absolutely should expect to get what they pay for. As I said, I am raising these issues directly with Royal Mail. We are bringing together the workforce and management, and I am meeting Ofcom later today.

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

As has been well established today, the blame for failures does not lie with postal workers, who are doing all they can to deliver a service. It lies with a private company that is telling its staff to prioritise parcels, but then pretending that is not its policy. My Chichester constituents have received hospital appointment letters four days after their appointment was due to take place. One constituent in Selsey received their letter for a specialist appointment in London an hour before it was due to take place. What can the Minister do to put pressure on Royal Mail, so that my constituents’ health is not put at risk as a result of its failures?

[Blair McDougall]

The hon. Lady’s constituents in Chichester deserve better, frankly. That is why it is so important that the Government send a clear message that we expect improvement. It is why I am having conversations with Ofcom. It is also why, when the new ownership took over Royal Mail, we received an undertaking that it would not be able to take value out of the company until it improved. That was done to ensure that there is an incentive for it to do better.

[Ian Byrne (Liverpool West Derby) (Lab)]

The Communication Workers Union reported chaos and demoralisation among its members as a result of the imposition of poorer pay and conditions for posties, and the company’s decision to prioritise potential job cuts over service when it comes to USO reform. Will the Minister outline what the Government are doing to ensure that Royal Mail customers and workers are not made to pay the price of the mismanagement of our postal services, and whether the Government will use any powers allocated to them as holders of the golden share?

[Blair McDougall]

As I said a moment ago, when the new ownership took over, part of the deed of undertaking was that we would not allow it to remove value from the company until service improved. On the impact on the workforce, obviously the negotiations are between the workforce and management, but the fact that the Secretary of State has been convening meetings between them shows that we take this issue very seriously, and it is a priority for our Department.

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

Like other hon. Members, I have had many constituents get in touch about poor mail service. One constituent in Kelsall reached out to Royal Mail after experiencing deliveries once per week at best, only to receive a reply stating that service levels in our area are good. The same constituent later received a hospital appointment letter after the appointment, which is certainly not good. Does the Minister share my concern that Royal Mail appears to be dismissing legitimate complaints, while failing to meet its universal service obligation, and what more can be done to hold Royal Mail to account?

[Blair McDougall]

The hon. Lady has previously pressed me on another aspect of postal services—the availability of post offices in her constituency—and she continues to campaign for her constituents. I share the frustration felt whenever a Member of Parliament who raises a concern is told that everything is fine and not to worry about it. It is precisely because I share this concern that I am having the meeting with Ofcom later today.

[Bill Esterson (Sefton Central) (Lab)]

The Royal Mail excuses are wearing very thin, are they not? I have constituents who are going to the sorting office and being presented with piles—weeks’ worth—of letters, and others who are getting those same piles delivered in one go. The Minister said he is meeting Ofcom today. Does he think that the regulator needs additional powers? It is clear from his answers so far, and from the fact that we are still discussing something that has been going on for months, that something is not working. I encourage him to consider whether the regulator needs more, and what he can do.

[Blair McDougall]

I will certainly talk to the regulator later today in those terms, and will ask that question. As I say, the business is regulated through Ofcom, but where the Government have power, we are taking it; for example, there is our insistence on putting in the company’s deed of undertaking that money cannot be stripped out of the company until service improves.

[Brendan O'Hara (Argyll, Bute and South Lochaber) (SNP)]

Whether it is the failure of Royal Mail to meets its USO or the skyrocketing price of heating oil, it seems that rural communities, such as those in my constituency, are most impacted. We all agree that despite the often heroic efforts of the workforce, the service provided by Royal Mail management is totally unacceptable. The Minister knows that we are 60 days from a Scottish parliamentary election in which 1 million people will vote by post. How confident is he that Royal Mail will be able to cope, and what measures is he putting in place to ensure that it does?

[Blair McDougall]

I have relatives in the most remote parts of Scotland, so I know that while these issues might be an inconvenience for the rest of us, for rural customers, they can be the stripping away of a lifeline. We have sought reassurances from Royal Mail that the current issues with service across the country will not impact postal voting in the upcoming elections. I know that the chief executive of Royal Mail has a meeting in Scotland to discuss preparations in the days ahead.

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[Mr Speaker]

That was a very late delivery. I am going to finish this urgent question at 1.30 pm, so let us help each other by being speedy. The Minister will show me how quickly he can reply.

[Blair McDougall]

My hon. Friend makes an important point, although I notice that everything seems to be the best in her constituency. The problem is not just missed post, but missed opportunities, like the one that she described. That is exactly why we will continue to pressurise Royal Mail, directly and through the regulator, to improve the service in areas like hers.

[Bob Blackman (Harrow East) (Con)]

Posties in my constituency have reported to me that one of the most serious problems is staff absence. Staff go off sick because they have been overworked, and as a result, deliveries do not take place. The final straw for one of my constituents was when they received a Christmas card on 28 February that had been franked before Christmas. Clearly, there is a serious problem, not just in rural areas but in suburban areas. Will the Minister seek an urgent action plan from Royal Mail on getting this right? Otherwise we will be back here in a month’s time with the same problem.

[Blair McDougall]

The hon. Gentleman could be mistaken for a CWU trade union official. He will be crossing the Floor. He makes an important and serious point: issues around staff conditions are directly related to the quality of service. That is exactly why the Secretary of State has been convening the meetings that I have mentioned to progress the talks.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

My constituents in Dulwich and West Norwood, particularly in the SE22 and SE24 postcodes, have been suffering the consequences of Royal Mail’s failings for years. Residents in SE24 recently had no mail for four weeks. A key problem in holding Royal Mail to account is that it is required to report performance data relating to only the first part of the postcode. That means that the failures of individual delivery offices are disguised in the sub-regional data. Will the Minister raise that issue with Ofcom, and ask it to look again at the reporting requirements on Royal Mail, so that it can be held properly to account?

[Blair McDougall]

As a former resident of SE23, I pay tribute to the posties in that part of the world. I will certainly add my hon. Friend’s suggestion to the agenda of the meeting later today.

[Adam Dance (Yeovil) (LD)]

Does the Minister recognise that meeting the universal service obligation is a challenge because of poor recruitment and retention? That poor recruitment and retention is no surprise, given that Royal Mail offers new postmen and postwomen little more than minimum wage, and sites are really not fit for purpose.

[Blair McDougall]

The hon. Gentleman raises an important point that is core to the talks that are going on right now between unions and management. That is exactly why we are so keen to ensure that the talks are productive and come to a settlement that deals with the issues that he describes.

[Phil Brickell (Bolton West) (Lab)]

I thank the Minister for his constructive engagement with me over the past few weeks on Royal Mail’s poor services in my Bolton West constituency. I know that he shares my utter frustration at the current service provision. May I flag with the Minister a letter that I sent to Horwich constituents on 13 February, updating them on the progress that I had made with the Minister on this matter? A constituent got in touch to say that the letter was only received on 25 February, some 12 days later, alongside missing correspondence from the Driver and Vehicle Licensing Agency, the NHS and the Department for Work and Pensions. Another constituent in Bolton received a Christmas card on 7 March that had been posted before 14 December. When will my constituents see an improvement in Royal Mail services?

[Mr Speaker]

Can we try to shorten the questions? Some people are not going to get in, and that really worries me, as this subject matters to all of us—especially me, as I have the best post offices and the best posties.

[Blair McDougall]

I reassure my hon. Friend’s constituents that his efforts to transmit their dissatisfaction have been heard at the highest level. If there is a prize for dark irony, I think he has probably just won it. It is because we want this situation to improve as quickly as possible that we are taking the action that I have described, and continue to put on the pressure.

[Bradley Thomas (Bromsgrove) (Con)]

I pay tribute to the posties across Bromsgrove, but not to the management of Royal Mail. My constituents need action, not more platitudes, like Royal Mail saying to me that it is “very sorry” that letters have not been received. I implore the Minister to get together with the management of Royal Mail and Ofcom to deliver an action plan, for which Royal Mail is accountable to us, via the Minister, so that we see an improved service for all our constituents.

[Blair McDougall]

I reassure the hon. Gentleman that I have communicated exactly the frustration that he describes, which I have heard from so many hon. Members, to Royal Mail, and I will communicate it to Ofcom later as well.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. Having spoken with postal workers from across Alloa and Grangemouth, I know that morale is at rock-bottom because of years of savage cuts, and restructuring that has negatively impacted their ability to do their job. Does the Government accept that the erosion of the service and workforce morale is due to privatisation, and that an essential public service like Royal Mail should be under public ownership, for the public good? When will the Government effectively hold bodies like Ofcom to account, because its inaction and impotence is costing our constituents dearly?

[Blair McDougall]

My hon. Friend is absolutely right to point out that the situation is a result of long-standing structural issues in Royal Mail, and with postal services more generally. My focus later today with Ofcom will be to ensure that it is pressed to deal with exactly the issues that my hon. Friend describes.

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

I align myself with the stories that everybody has told. Constituents in Sturminster Marshall received two postal deliveries in the whole of January, and then Royal Mail tried to blame letters not being delivered on the flooding, which happened at the beginning of February, so I do not trust anything it says. I am concerned about my posties, who are literally being brought to tears on the doorstep. They are being told that they cannot have any overtime even though posts are being advertised, and they cannot complete their rounds. They have explained to me that they are being expected to manage their decline. What is the Minister doing to stand up for these frontline workers who are key to our communities?

[Blair McDougall]

The hon. Lady is right to pay tribute to her local posties. It is because we recognise the connection between the sustainability of the Royal Mail and the postal service and the conditions of workers and the importance of the talks that are going on, that the Secretary of State has been convening the meetings that I have mentioned, and he will continue to do so.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

This situation is completely intolerable, as everybody has described. Will the Minister confirm that if the owners continue to fail to discharge their obligations as a matter of urgency, the option of taking Royal Mail back into public ownership will be fully considered, because that is popular with the public?

[Blair McDougall]

Our focus is on ensuring that the talks that are under way are productive, and that they end with measures that will get the delivery service improved and the business on to a sustainable footing. As I have mentioned, we have an undertaking that the owners are not allowed to take value out of the company until service standards improve.

[Martin Vickers (Brigg and Immingham) (Con)]

My constituents who have lodged complaints with the local Royal Mail are receiving messages that say:

“We’re sorry to advise that deliveries in parts of the DN31-DN37 postcodes are being disrupted due to resourcing issues at the Grimsby Delivery Office.”

Will the Minister give an assurance that, if he has not already done so, he will urge Royal Mail to deal with these staffing resources? It is an acceptable reason in the short term, but not in the long term.

[Blair McDougall]

Whenever hon. Members raise local delivery issues with me, I raise them directly with Royal Mail officials. I will certainly do so for his area because his constituents deserve a better service.

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

People across Morecambe and Lunesdale are suffering from late Royal Mail deliveries. In fact, one constituent was told by a frustrated, overworked postie that second class letters were being delivered once a week, at most. What steps is the Minister taking to address that problem?

[Blair McDougall]

The service that my hon. Friend’s constituents are getting clearly is not good enough. We have met Royal Mail to say that the situation is not good enough, we are bringing together workforce and management to progress the talks that will enable us to improve those standards and, as I say, I will be meeting Ofcom later today to express her concerns.

[Carla Lockhart (Upper Bann) (DUP)]

My criticism is of Royal Mail’s senior leadership; it is certainly not of our local posties. In Upper Bann, the posties are excellent and so is my liaison officer in Royal Mail, who has gone above and beyond to get information flowing. Staff are at breaking point, there are absences and gaps—we have 10 vacancies in Banbridge depot—and letters are delayed. You know the score, Mr Speaker. The big issue is with hospital letters, so will the Minister liaise with health and social care trusts in Northern Ireland?

[Blair McDougall]

I will raise the issues at Banbridge sorting office directly with Royal Mail. In addition to my work with the Department of Health, I will ensure that we are having that conversation with health bodies in Northern Ireland.

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

Given that the Government used the National Security and Investment Act 2021 to extract a golden share, because they considered Royal Mail to be national critical infrastructure, I find it slightly odd that, having recognised its importance, we think there is nothing that we can do. Will the Minister commit to, or at least consider, taking powers that he might need to make a direct intervention to ensure that our constituents, including mine in Stoke-on-Trent Central, get their letters when they want them: on time?

[Blair McDougall]

My hon. Friend is right to speak on behalf of his constituents and demand better service. As for what we can do, as I said, we are working through the regulator to ensure that services improve, and I am meeting it later today. We are also intervening to bring together the workforce and management to ensure the talks that are crucial for making those improvements progress.

[Ben Obese-Jecty (Huntingdon) (Con)]

I concur with Members across the House that the fault does not lie with our individual posties. I pay tribute to Dean and Aaron, who have been fantastic as my posties in Brampton in my constituency. I have been written to by Royal Mail employees in my constituency about the new contract and the pressure that it puts on, with 50% of new postal workers leaving in their first year. Can the Minister guarantee that he will speak to Ofcom about equalising pay and conditions to ensure that we do not see as many staff leaving?

[Blair McDougall]

The question of equalising pay and conditions is a matter for those talks. That is why, through the Secretary of State, we are bringing together the owner and the trade unions to have those discussions. I also pay tribute to Dean and Aaron, who can now say that they have had their names mentioned at the Dispatch Box.

[Lorraine Beavers (Blackpool North and Fleetwood) (Lab)]

I am a proud member of the CWU. Posties in my constituency are clear that the problems at Royal Mail are the previous board’s financial mismanagement, along with lower wages, longer hours and poorer conditions. The Conservatives and the Lib Dems were warned that that would happen, but they privatised Royal Mail anyway. Will the Government commit to ensuring that the new owners stick to the agreement with the CWU and the Government, meet the universal service obligation and ensure that my constituents get the service that they deserve?

[Blair McDougall]

My hon. Friend is right. Her constituents absolutely deserve better, and she is right to highlight the long-standing issues that we are trying to deal with. Royal Mail should absolutely meet all the obligations that it has entered into.

[Claire Young (Thornbury and Yate) (LD)]

Hundreds of my constituents have written to me about Royal Mail failures. I have raised them with Ofcom, but it tells me that it cannot investigate local complaints, and Royal Mail will not act on them. Will the Minister commit to reviewing Ofcom’s powers to hold Royal Mail to account at a local level?

[Blair McDougall]

As I said a moment ago, I will certainly ask Ofcom for its assessment of its powers in this space, and I will keep the hon. Lady updated.

[Lauren Edwards (Rochester and Strood) (Lab)]

Before I became a Member of Parliament, I worked for the CWU at the time of Royal Mail’s privatisation, and I am sad to say that much of what we feared would happen has come true. Residents in Grain in my constituency reported receiving no first-class or second-class mail for weeks, similar to the reports of other Members.

I will highlight an incident in which Network Rail had to hand-deliver letters to residents to ensure that they were aware of the impending closure of a critical rail crossing, because Royal Mail service could not be relied on. Does my hon. Friend agree that the service to my constituents is completely unacceptable? Royal Mail needs to focus on addressing its significant recruitment and retention challenges, which have been made worse by the introduction of a two-tier workforce in 2022-23.

[Blair McDougall]

The example that my hon. Friend gives about Network Rail is a reminder that, as my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) said a second ago, this is critical national infrastructure that we rely on at moments like that. The issues that my hon. Friend the Member for Rochester and Strood (Lauren Edwards) discusses in terms of the terms and conditions are exactly why we have made that a priority. The Secretary of State is bringing together the management and workforce to discuss those issues.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I had the opportunity to meet senior management at Royal Mail yesterday, after constituents in Symington and Thankerton in the Clydesdale area of my constituency received no mail at all for more than 10 days. I want to return to the issue of postal voting in the Scottish elections and other elections. I do not think that reassurances from Royal Mail are enough; the Minister and others need to see a plan so that we know postal votes will be delivered, collected and taken to the electoral authorities. Will he reassure us that he will get such a plan?

[Blair McDougall]

We continue to seek those reassurances and the plan behind them. As I mentioned, with regard to the Scottish elections, a specific meeting between the management of Royal Mail—its CEO—and the election authorities in Scotland is coming up to discuss exactly the concerns that the right hon. Gentleman raises.

[Alan Strickland (Newton Aycliffe and Spennymoor) (Lab)]

I met a resident at my surgery at the weekend who has a long-term health condition. They have been sent testing packs by the NHS, which arrive late, and appointment letters have been delayed, which is having a huge impact on their health. When the Minister meets Ofcom later, will he raise the serious impacts of unacceptable Royal Mail delays on not just our residents, but our national health service?

[Blair McDougall]

I will certainly raise my hon. Friend’s concerns about important medical post with Ofcom. Royal Mail is part of the critical national infrastructure and can reach every part of the country, and its ability to deliver such things is a business opportunity, and it needs to get that right.

[Andrew George (St Ives) (LD)]

On Monday, it was my privilege to visit the Helston sorting office, where I discovered staff burdened with remote, counterproductive micromanagement of their work and inadequate plans to deal with the inevitability of staff absences. I was distressed to hear them describe that they had been abused and threatened when undertaking their work on the frontline. Does the Minister agree that frontline workers should be praised and have management systems that empower them to resolve matters locally?

[Blair McDougall]

I think the hon. Gentleman can tell from the comments around the House how much respect and affection there is for posties around the country, and I am disturbed by what he describes. Ultimately, the only sustainable future for Royal Mail is in bringing together a workforce who are really passionate about what they do and a management who are seeking to get the company into a financially sustainable position. That is why we are prioritising the talks going on at the moment.

[Alex McIntyre (Gloucester) (Lab)]

Gloucester residents have been let down by Royal Mail for years; it is prioritising parcels over post and profits over our posties. I have a visit to Gloucester North delivery office on Friday, and I was shocked to find out from the frontlines that it is offering overtime to clear the backlog before I get there. Ofcom has proven to be utterly toothless in this matter; it is not regulating properly, and Royal Mail is baking the fines into its business plans. What more can we do to give Ofcom the bite that it needs to improve service for Gloucester residents?

--- Later in debate ---

[Blair McDougall]

My hon. Friend has been a constant campaigner and is constantly in my ear on these issues on behalf of his constituents. As I said, I will be talking to Ofcom later today about its role in this matter, and I will keep him updated on that.

[Luke Taylor (Sutton and Cheam) (LD)]

Residents across my constituency, particularly those in the SM1, SM2 and SM3 postcodes, have been reporting issues with their deliveries for years. Local social media is full of people reporting one-day-a-week deliveries and asking which other roads that is occurring on. I have visited my delivery office for the last two Christmases, meeting hard-working posties who have been let down by the system. Let me give a particular shout-out to Timmy, who has been delivering to my road for decades and is approaching retirement—my congratulations to him. Will the Minister add Sutton to the list for his agenda this afternoon? Can he also report back next Wednesday in the Westminster Hall debate, which I imagine he will be coming to, with clear actions from his meeting this afternoon?

[Blair McDougall]

I pay tribute to Timmy and thank him for his years of service. It is exactly because this service is full of people like him who are passionate about their jobs that we need to ensure that Royal Mail’s quality of service is reformed and improved.

[Josh Newbury (Cannock Chase) (Lab)]

Phil from Brereton told me that his wife’s jury service letter arrived too late for her to defer; Colin from Brereton had a hospital letter that arrived three days after the appointment; and Michael from Rugeley waited weeks for a new debit card. Those were first-class letters, so planned reforms to the universal service obligation would not have made much of a difference. Will the Minister impress upon the leadership of Royal Mail the human impact of these delays on posties and residents?

[Blair McDougall]

My hon. Friend makes a powerful case about how delays and failings in Royal Mail standards impact on so many different aspects of his constituents’ lives. I will certainly use those examples when I next meet with Royal Mail.

[Jim Shannon (Strangford) (DUP)]

I want to make a quick point about hospital appointments. When someone misses their hospital appointment, they go to the back of the queue and start again, and might have to wait another two years. When the Minister has his meeting with Royal Mail today, can I ask him to convey to its representatives that they should have meetings with health trusts, patient groups and representatives of Northern Ireland to ensure that those who miss appointments due to delays in the Royal Mail will not be disadvantaged, which they clearly are at the moment?

[Blair McDougall]

The hon. Gentleman makes an important point. As I mentioned a moment ago, we are working with the Department of Health and Social Care here to ensure as many health bodies as possible take advantage of the barcode service, to make sure that their letters get through. I will certainly make sure that the issues he has highlighted are raised in Northern Ireland.

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

Lots of letters are late. One that stood out to me, which a constituent raised, was a parking fine that had almost doubled in price by the time it arrived. Locally, the Royal Mail tells me that it is recruiting 12 new postal workers, but if that does not fix the problem, what should we try next?

[Blair McDougall]

Continue to speak to me. My hon. Friend grabbed me during the votes the other night to raise local Royal Mail issues, and I know she will continue to do so.

[Steve Race (Exeter) (Lab)]

Many residents and fantastic posties in Exeter have raised exactly the same concerns as other Members of the House. Can the Minister give an assessment of how he thinks Ofcom has dealt with this issue so far, and does he have confidence in Ofcom to get a grip on it?

[Blair McDougall]

We rely on Ofcom as the regulator of Royal Mail, which is exactly why we are having a meeting later today to discuss what more it can do to deal with the widespread concerns that exist across the House about the quality of service.

[Laurence Turner (Birmingham Northfield) (Lab)]

It is clear that the NHS barcode prioritisation system broke down, but the problem is not limited to NHS letters. I want to highlight the Government’s Tell Us Once service following a bereavement. Many hon. Members will know the urgency and distressing nature of that correspondence, so will the Minister—who has been extremely active in dealing with constituency concerns—look at the issue of prioritisation of non-NHS letters?

[Blair McDougall]

In a previous life, I was very proud to have worked on the Tell Us Once service at its inception, and I know how important that service is to people at the worst possible time of their life. I will certainly raise the issue that my hon. Friend has highlighted.

[Tom Hayes (Bournemouth East) (Lab)]

As the Labour Member of Parliament for Bournemouth East, I stand by my posties here in the House of Commons and thank them for their dedication and diligence, which stands in sharp contrast to the management of the Royal Mail. The trial that is under way has failed, and the new approach will spectacularly fail if it is put into effect. When the Minister meets Ofcom later, and when he meets the Royal Mail, will he say that he will not stand for the Royal Mail becoming yet another gig economy parcel courier that exploits its employees and lets down customers?

[Blair McDougall]

This is a Government who are improving the working conditions, standards and rights of workers across the economy. My hon. Friend makes the important point that there is wisdom and experience within the workforce. The talks that are going on at the moment are about bringing that together with the ambition and responsibilities of the management, which is why we are taking the actions we are.

[David Burton-Sampson (Southend West and Leigh) (Lab)]

Southend sorting office was part of the original pilot for these changes to the USO. It failed, and nine months later it is clear that it is still failing, so today I have summoned the management to meet me and my constituents to hear at first hand the challenges this is causing. Following that meeting, will the Minister meet me to hear that feedback and take it right up the chain?

[Blair McDougall]

I certainly will. I thank my hon. Friend for raising that issue, as well as all the other hon. Members who have brought to me local intelligence, which informs my own understanding of the issues across the postal service.

[Mark Sewards (Leeds South West and Morley) (Lab)]

Residents in Ardsley, Robin Hood, Lofthouse, parts of Tingley and Morley are complaining that they have been waiting up to three weeks for their postal service. It is obviously not the posties’ fault—it is a question of leadership and management. Following the Minister’s meeting with Ofcom, will he meet me to see the evidence for himself? What can he say to reassure my constituents now?

[Blair McDougall]

I reassure my hon. Friend’s constituents that we are expressing the frustration and anger that he has expressed to me directly to Royal Mail and through Ofcom, and of course I will happily discuss developments with him.

[Sureena Brackenridge (Wolverhampton North East) (Lab)]

I agree with residents across Wolverhampton and Willenhall that Royal Mail’s delivery service is just not good enough, but we stand with our frontline postal workers, who are working incredibly hard and bearing the brunt. I call on the Minister to challenge Royal Mail’s leadership, and to have a look at the two-tier employment model and wider issues that are affecting the recruitment and retention of our hard-working staff.

[Blair McDougall]

My hon. Friend’s constituents absolutely deserve better, and posties deserve dignity at work, given the essential job they do for our society and our economy. That is exactly why we are convening meetings between management and unions to make sure that those talks progress.

[Dave Robertson (Lichfield) (Lab)]

My speaking notes talk about excuses from Royal Mail. Now that I am in the Chamber, though, I do not think that is the language I will use, because people across Lichfield, Burntwood and the villages are sick of being lied to by Royal Mail. I met Royal Mail just before Christmas to complain to it about the total lack of a postal service in Lichfield—we were probably the worst area in the country at that point. When I had that meeting, I was told that all the first-class mail went out last week, but that was a lie—it was an absolute lie, because my constituents told me so. Royal Mail clearly does not have a handle on this issue. It is either not measuring its performance or it is covering it up, so I ask the Minister to use the golden share we have to force Royal Mail to be honest, fess up and fix it.

[Blair McDougall]

My hon. Friend shows passion and anger, which he has also shown to me in private when raising these issues. Again, that speaks to how frustrating it is for us as Members of Parliament to raise a problem—on any issue—and then to be told that it does not exist when our constituents are telling us otherwise. Royal Mail has a responsibility to address the problem in a direct and straightforward manner, because if we are not recognising the problem, we will not deal with it.

[Mr Speaker]

This has been an excellent debate, and I thank Members for the way it has been delivered on behalf of all our constituents. Royal Mail’s management has a problem, and that has certainly been highlighted today.

Post Office Green Paper: Government Response

Blair McDougall Excerpts

Wednesday 25th February 2026 Written Statements

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

The Post Office is a vital part of the UK’s social and economic fabric, supporting communities, small businesses and local high streets. Last year, the Government published a Green Paper to open a national conversation about how to secure a modern, trusted and financially resilient Post Office for the future.

Today, we are publishing the Government’s response to that consultation. More than 2,500 people contributed their views, including postmasters, businesses, community organisations and members of the public. Their responses provided invaluable insight and have shaped the Government’s decisions.

The message from the public was clear. People want a strong and convenient network, built around permanent, full-time, full-service branches offering a wide range of postal, banking and Government services. In response, the Government will retain the minimum network size of 11,500 branches and all six geographical access criteria. We will also introduce a new requirement that at least 50% of the network must be full-time, full-service branches—the sites that deliver the highest social value and strongest service to customers. This requirement sets 50% as an absolute minimum, and we expect the Post Office to continue operating substantially above it. We are setting this requirement to ensure that full-time, full-service branches remain the backbone of the network for the foreseeable future, as these are the branches that deliver the greatest social value and the strongest customer service.

Government will continue to provide funding to the Post Office to support with the delivery of these policy requirements, via the network subsidy. Pending the completion of the subsidy referral process, Government plans to provide up to £180 million in network subsidy funding over the next three financial years.

Long-term stability also requires keeping with the times, which is why investing to modernise the network remains a Government priority. Government intend to provide up to £483.4 million over the next two financial years to support transformation across the network, pending the completion of subsidy referral processes. This will modernise branches, fund new equipment in branches to improve the customer experience, expand parcel locker provision, and enable the technology transformation to transition operations away from Fujitsu and ultimately move away from the Horizon system.

To continue protecting the network, Government plan to support the Post Office financially on a number of issues that the Post Office is not in a position to fund on its own. This includes plans to provide the Post Office with up to £37.4 million in funding to fund its remediation unit, which is responsible for delivering redress to postmasters affected by the Horizon IT system and other operational failures, and to fund the company’s response to the Post Office Horizon IT inquiry. Government also intend to provide funding of up to £104 million to the Post Office so that it can pay its IR35 tax liability and associated corporation tax to HMRC. This funding is subject to the completion of the subsidy referral process.

Consultation responses emphasised the importance of the Post Office as a parcel hub, and we welcome the Post Office’s continued innovation in this area. On banking, people were clear that the Post Office’s role in ensuring access to cash and in-person services remains essential. Banking framework 4 will increase remuneration for postmasters, and Government will continue to work with the banking sector to strengthen provision further. On 21 January, Government held joint discussions between the Post Office and the banking sector to explore where continued collaboration, on a commercial and voluntary basis, would allow all parties to better meet the needs of individuals and businesses. Attendees agreed to give an update on discussions in six months.

Consultation responses also highlighted continued reliance on face-to-face access to Government services. We see real potential in exploring how these services could be improved and a cross-government group has been established to take this forward.

Strengthening the relationship between the Post Office and postmasters remains central. While meaningful steps have already been taken, including enhanced engagement structures, the Government expect the Post Office to develop a unified culture strategy—covering employees, postmasters, strategic partners and customers—by summer 2026. An independent evaluation of recent initiatives will report later this year.

Our long-term ambition is a financially sustainable Post Office that remains a trusted presence in communities across the UK. Decisions on long-term governance models will be taken only after the conclusion of the Horizon IT inquiry. In the meantime, the Government will work with the Post Office to ensure financial discipline, progress towards positive trading profit by 2030, and protection of access for the communities that rely on it.

This response sets a clear direction: a stable, modern and resilient Post Office, fit for the future and shaped by the people it serves.

[HCWS1360]

Post Office Green Paper

Blair McDougall Excerpts

Wednesday 25th February 2026 Commons Chamber

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

With your permission, Madam Deputy Speaker, I would like to make a statement on the Government’s response to the results of the “Future of Post Office” Green Paper. We published the Green Paper in July, starting a national conversation about the future of the Post Office, an institution that has served every community in every corner of the United Kingdom for generations. More than 2,500 people took the time to respond to the consultation, including postmasters, small businesses, service providers, community groups and members of the public. We also held dedicated discussion groups with postmasters and citizens across the country. I therefore start by thanking every respondent; their views provided a wealth of insight, and have been carefully considered.

I am pleased to announce that we are publishing the Government response to the consultation today. Our response must echo the clear call we heard from respondents. They told us that they want a strong and convenient post office network, built around permanent, full-time and full-service branches that offer a wide range of essential postal, banking and Government services. They want a Post Office that is reliable, modern and transparent, and that puts postmasters at the heart of decision making. As such, I can confirm today that the Government will keep the minimum network size of 11,500 branches and will retain all six geographical access criteria, ensuring that communities across the UK continue to have local and reliable access to postal services, including rural and remote areas.

Alongside maintaining the network requirements, we are introducing a new requirement that at least 50% of the network must be full-time and full-service branches. This requirement sets 50% as an absolute minimum, and we expect the Post Office to continue to operate substantially above it. We are setting this requirement to ensure that the full-time, full-service branches remain the backbone of the network for the foreseeable future, as those are the branches that deliver the greatest social value and the strongest customer service. At the same time, we are not blind to the challenges facing the Post Office, and have built in an evidence-based process so that we know when it is the right time for Government to look at the post office network again.

However, stability requires investment. That is why over the next two years, the Government will provide up to £483 million to support the transformation of the Post Office, on top of network subsidy funding to support the costs of delivering Government policy, which will be £70 million in financial year 2026-27. This investment funding will modernise branches across the country. It will support new in-branch technology and the delivery of new products and services that will make sure the Post Office can do what its customers need it to do, while keeping its identity and its role at the centre of so many UK high streets. The funding will also enable a major technology transformation programme within the next five years that will transition operations away from Fujitsu and ultimately replace the Horizon system. Postmasters must be able to trust the technology that they use; it should make their jobs easier and help them spend their time doing what they do best, which is serving their local communities. The days of the Post Office relying on outdated systems must end, and this programme lays the ground for a modern, resilient and fit-for-purpose organisation.

The consultation reinforces the importance of the Post Office for post, of course, but also for banking and access to Government services. I would like to address some specific points about each of those areas. First, on postage, respondents told us that they value the Post Office as a multi-carrier parcel hub and want more choice and convenience in how parcels are sent and received. We will support the Post Office’s efforts to innovate in this space while ensuring that essential services remain accessible.

Secondly, on banking, the public were clear that the Post Office plays a critical role in ensuring communities have access to cash and in-person banking. Being able to access essential banking services such as cash withdrawals and deposits is valuable to many Post Office customers, in particular small businesses, and respondents expressed an appetite to increase their offer. Last month, the Government held discussions between the Post Office and the banking sector to explore where they may be able to work together on a commercial and voluntary basis to better meet the needs of individuals and businesses. Those discussions were based around areas of mutual interest such as banking services, financial inclusion, modernisation, and the importance of continuing to improve financial crime safeguards. Those conversations are ongoing.

Finally, on Government services, colleagues will know that many services have moved online. However, respondents told us strongly that vulnerable, digitally excluded and rural customers continue to rely on the Post Office for in-person services. In that spirit, we have established a cross-Government group to look at developing a common physical front door for Government services, expanded assisted digital support, and new propositions such as prescription collection and identity verification.

At the heart of the Green Paper and of today’s Government response is the need to strengthen the relationship between the Post Office and postmasters. The Horizon scandal was one of the worst miscarriages of justice in modern British history, and while the Government remain focused on delivering redress to victims as rapidly as possible, we must also ensure that the culture that enabled those wrongs can never return. The Post Office has already taken steps to rebuild trust, including the postmaster panel, a new consultative council, embedding postmasters in key teams at the Post Office’s head office, and the election of postmaster non-executive directors to the board.

However, we agree with respondents that more is needed. As such, I can confirm today that the Post Office will develop a culture strategy with measurable objectives that covers employees, postmasters, strategic partners and customers. The Government expect that plan to be in place by this summer. To ensure that these reforms genuinely meet the needs of postmasters, the Government have commissioned an independent external evaluation of the initiatives the Post Office has implemented to strengthen postmaster engagement, which will report later this year.

Our long-term goal is a Post Office that is financially sustainable, adaptable to changing markets and less reliant on Government funding, but this transition must be responsible and realistic. Respondents were clear that stability comes first, particularly while the Horizon inquiry continues. That is why the Government will provide £37 million of funding to the Post Office in the next financial year to support with the costs of administering redress and responding to the inquiry. While the Green Paper explored long-term governance ideas such as mutualisation or a charter model, the Government will not make any decisions on structural reform until after the final report of Sir Wyn Williams’ inquiry. In the meantime, we will work with the Post Office to ensure that the organisation demonstrates financial discipline, generates a trading profit by 2030, and continues to reduce reliance on taxpayer subsidy while protecting access for communities that depend on it.

This Green Paper process and the thousands of responses we received show the enduring importance of the Post Office to the life of this country. The Government’s response sets a clear direction: we are maintaining a strong and accessible network, backing postmasters through major investment and cultural reform, modernising services for a digital age, and setting the Post Office on a path towards long-term financial and operational stability. The Post Office must be modern, resilient and trusted, shaped by the communities it serves and built around the people who run it. With today’s response, we take a major step towards that future.

I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I thank the Minister for advance sight of his statement, and—I do not often say these words—I warmly welcome the decision that he has announced. It seems that the Government have abandoned the risk, posed by their earlier proposals, that they would shutter thousands of local post offices, especially in rural areas. It is a great relief to those in villages and high streets that the Government have listened to the people who engaged with the consultation and the 180,000 who signed our petition, and have heard the calls from the readers of The Mail on Sunday, the Express, The Daily Telegraph and other media outlets, all of whom were outraged by the possibility that the Government would close their much-valued local post offices.

By keeping the minimum network size at 11,500 branches, as it was throughout the 14 years we were in government, and by retaining all the geographical access criteria, the Minister has avoided a U-turn. In fact, I would describe what he has done as avoiding a chasm that was opening up in the road in front of him, and avoiding it niftily. The campaign that we led showed how important it is to voice the concerns of the vulnerable, those who are digitally excluded and the small businesses that rely so much on our precious post office network. May I add my thanks for the hard work of every postmaster and postmistress in Britain who keeps that network going?

However, it is not all sweetness and light for me today. The post office network, like so many retailers, faces a tax hike—in this case, a hike of £45 million—because of the national insurance increase. Many post offices are also seeing increases of more than 100% in their business rates. The chairman of Post Office Ltd, Nigel Railton, made it clear that it was precisely because of the rising costs resulting from the changes in national insurance and the national living wage that the business needed a fresh start. We cannot claim to support the backbone of the network while breaking its back with tax hikes. The Conservatives have always stood up for our nation’s high streets, and we would introduce a permanent 100% business rate relief for retail, leisure and hospitality businesses whose premises are under the rateable value threshold of £110,000.

I have a few questions for the Minister. He announced a requirement for at least 50% of the network to be full-time and full-service. I believe that the number today is 79%. Is that not a downgrade, and what does he expect from the other 29%? Will he confirm that no small rural branches will be consolidated and replaced by city-centre hubs under the guise of this new 50% full-service requirement? Will he please expand on the minimum service that he would expect those smaller branches to deliver?

The Minister committed himself to a technology transformation programme to replace the Horizon system within the next five years. I heard about the first two years of funding, but will he give us some details about how the current system will be maintained after those first two years? He mentioned the importance of the post office network, given the number of banks that are closing branches all over the country. Has a new, specific agreement been made with the banks to provide additional support for post office branches in areas where banks are closing? What update can he give the House about the discussions with Fujitsu and its financial contribution towards Post Office redress?

The Minister has clearly been forced to listen. He has been forced to do a pre-U-turn on the proposals to reduce the size of our precious post office network. He has been forced to admit that our high streets deserve better than the managed decline that was a risk under those earlier proposals, and this is a victory for all our constituents.

[Blair McDougall]

I think that if I am praised much more from the Opposition Benches, I will be drummed out of the Brownies.

I welcome the hon. Lady’s response to my statement. I believe that there is consensus across the House on the important role that post offices play in our communities, and particularly in our high streets and remote villages. I join the hon. Lady in welcoming the campaigning of Mail and Express readers, who have voiced very clearly the importance of post offices to their communities. In my capacity as both postal services Minister and small business Minister, I also echo her words about the essential function of post offices in providing a place for small businesses to drop off their takings.

The hon. Lady referred to the costs faced by the Post Office, which is a point well taken. The Government are putting £483 million into the transformation of the Post Office to ensure that it has a financially sustainable future as a business on our high streets and in our villages. She asked specifically about support for the IT transformation. Of the more than £500 million that the Government have committed to transformation, including the money already spent before the Green Paper, £136 million is committed to technology and to replacing the Horizon system, which is a major priority for us. However, that transformation investment—beyond what we are putting into IT—will also enable the Post Office to do new things. The debate about the Post Office often concentrates on the idea of its being the last place to do things, but, having talked to the management of Post Office Ltd, I am greatly encouraged by their wish for it to be the first place that people think of in connection with cash and other high street services.

The hon. Lady asked about the additional 50% trigger, and, entirely fairly, raised the question of what it would mean for rural areas. The criteria for access to the full set of services that a branch provides are being maintained, so those protections are still there. This is very much an additional protection, rather than an alternative to the protections that were already there for rural post offices. For example, “drop and collect branches” that do not offer the full service are included in the 11,500 criterion, but are not included in the access criteria. This is about protecting access to as full a range of services as possible.

Finally, let me respond to the hon. Lady’s question about Fujitsu. When I met Fujitsu representatives shortly before the end of last year, I made very clear our belief that—as they have said themselves—they have a moral responsibility to contribute substantially to the costs of redress. They have said that they wish to wait until Sir Wyn’s inquiry before making a decision on that, but we will continue to have those discussions.

[Mr Clive Betts (Sheffield South East) (Lab)]

I warmly welcome the Minister’s statement. May I raise two specific issues relating to post offices in my constituency?

First, Mosborough post office, a fairly small but growing business, is on the margins of viability. Will the Minister think again about how small post offices in communities that rely on them can be supported? Secondly, the Lloyds bank branch in Woodhouse—the last bank there—has closed. Woodhouse is an old mining community. We thought it was an ideal place for a banking hub, and we had someone willing to run it: Richard Trinder, the sub-postmaster at Handsworth post office. However, the plan was turned down because the banks were not prepared to fund it The Minister mentioned discussions with the banks and the Post Office about a voluntary agreement. Will he have a look at what he might do to enforce such agreements, and change the criteria for banking hubs when they could be vital to local communities?

--- Later in debate ---

[Blair McDougall]

My hon. Friend has made some important points, particularly about the smaller post offices which, as he says, are often the ones that struggle and may be less able to invest directly to tackle some of their problems. The money that we are putting into network transformation is important because it can enable those that may be struggling at the moment to become viable businesses. Just before the end of last year, Treasury Ministers and I chaired a banking roundtable. As my hon. Friend says, we are talking about a voluntary relationship, but all the banks recognise the critical importance of the post offices and of access to banking services for their customers, especially in the light of recent high street bank closures. That recognition is, obviously, shared by the Government.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Olney]

I thank the Minister for advance sight of his statement, and I promise to set a good example for colleagues by keeping my response brief.

As the Minister has laid out, the responses to the consultation underscored the importance of post offices as community hubs that provide vital services, not least to NHS patients through the delivery of important medical correspondence. Some 99.7% of the population live within three miles of a post office, and 4,000 of these branches are open seven days a week. That is an increasingly important statistic, given the rapid closure of high street services such as banks over the past decade. The Minister has said that at least 50% of the network must be full-time and full-service branches. Many people rely on the post office to provide vital services, so can the Minister confirm that we will not see a reduction in the number of full-time branches and that he will ensure that opening hours continue to meet the needs of working people?

The Minister also referred to the important community banking service that post offices provide, but he did not provide specific assurances to the House about other services provided by the Post Office, such as Driver and Vehicle Licensing Agency services and Passport Office services. He mentioned expanded digital services, but these will not help many of our constituents who live in remote areas with poor broadband access or difficult phone service access. Can he provide a commitment that the Post Office will continue to provide physical services for people who will have difficulty accessing DVLA and passport services digitally? Can he confirm that these will remain in post office branches beyond March 2026, and will he commit to multi-year contracts, in particular with the DVLA?

[Blair McDougall]

I thank the hon. Lady for welcoming today’s statement. On the additional protection that we are bringing in, I reassure her that in addition to maintaining the network of 11,500 post offices, the access criteria stipulate that 99% of the UK population must be within three miles of a post office outlet, 90% must be within one mile, 99% of those living in deprived urban areas must be within one mile, 95% of the total urban population must be within one mile, and 95% of the total rural population must be within three miles. Then we have the additional protection, particularly in rural areas, that 95% of the population in every postcode district must be within six miles of a post office. They will all be maintained, which should reassure her.

The hon. Lady makes a point about ensuring that post office hours match people’s lives, which is something that postmasters are doing already. I visited a post office in Acton that stays open at weekends and till 11 pm, so that other retailers, such as grocers, can come and put in their takings.

Finally, we recognise the importance of post offices for vulnerable people and those who, for whatever reason, might struggle with the choices that many other people are making about accessing Government services online. That is one of the key reasons why we are keeping the network at the level it is at the moment. As I mentioned in my statement, we are also doing work across Government to look at the idea of a single front door for face-to-face Government services and the role that the Post Office can play in that. We are looking to enhance the role that the Post Office plays.

[Tom Hayes (Bournemouth East) (Lab)]

I welcome the announcement of £483 million to invest in our post offices around the country, and I join the Minister in thanking our postmasters and postal staff, particularly those at the Southbourne Grove, Malmesbury Park, Hengistbury Head and Sea Road post offices in my constituency. What happens at Royal Mail affects our postal services—it is unavoidable—so I am concerned about the adoption of the optimised delivery network in Bournemouth and more broadly. The Minister and I were recently at a meeting with the Post Office in which we had a private discussion about its future. Does he agree that the work of the Government in this area is key to building pride in our communities, tackling antisocial behaviour and having a diverse mix of offer on our high streets? That is the only way in which we will truly regenerate our high streets in Bournemouth and across the country.

[Blair McDougall]

I pay tribute to my hon. Friend for campaigning for his own high streets, and particularly for his local post office network. He is absolutely right to say that our response recognises the importance of post offices as anchors in high streets—they help drive footfall. The community hub model that the Post Office is piloting is an example of how we can build on that and expand post offices’ role as anchors in high streets, but he is right: this has to be seen across the wider effort that we are undertaking to make high streets somewhere people choose to go, to make them more attractive and to make them places where people choose to shop. High streets and high street businesses are not just part of the community; they are where our communities are made.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

Kingswinford is the largest town centre in my constituency, but it has been without a post office since the Midcounties Co-operative closed the store in which the post office was located. That loss has become even more significant since Lloyds bank announced this month that it was closing the only bank in the town centre. The Minister has spoken about retaining a minimum post office network, but what will the Government do to help re-open post offices in town centres that do not currently have a post office, such as Kingswinford?

[Blair McDougall]

The hon. Gentleman makes a really important point: it can be really devastating when a post office closes, particularly in a small community. There will always be churn within the network—there will be businesses that succeed or fail as post offices. Our job is to make sure that the overall criteria are there and that the overall level of access is there for people.

The hon. Gentleman asks what we can do to bring businesses and post offices back to areas such as Kingswinford. The transformation investment that we are putting in is so important, because that is what makes the overall business profitable, but it also enables the Post Office to give a better deal to postmasters, which makes it a more attractive business to open in communities like his.

[Adam Thompson (Erewash) (Lab)]

High streets in towns like Long Eaton have come under growing strain in recent years, not least because of widespread bank closures, but around one in five people is still not using online banking—a group that disproportionately includes older and disabled residents. I am fighting hard for the establishment of a banking hub in Long Eaton. Given the clear need for accessible financial services, what role does the Minister envisage for post offices in supporting the regeneration of high streets in Erewash, and what support is he providing to strengthen the Post Office’s financial services?

[Blair McDougall]

I pay tribute to my hon. Friend for the campaigns that he runs in defence of his local high streets. Just before the end of the year, we brought together Post Office Ltd and the high street banks to begin a discussion about the future of banking and financial services within the Post Office and the role that it plays, not just in ensuring that people have access to banking services but in bringing footfall to local high streets. The revenue that the Post Office receives from the financial services and banking side of its business has doubled over a period in which its revenue from delivering letters has declined, so we are absolutely clear about the importance of the Post Office’s banking services to the future of local high streets.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

I have a particular interest in this matter, because the world’s oldest post office is in Sanquhar, in my constituency, which has operated continuously since 1712, despite some scares in recent years. The Minister would be very welcome to visit it. I urge him to get some urgency into the discussion with the banks, because there is significant confusion between the banking hub legislation and rules and the role of the Post Office. For example, in Sanquhar, although the Bank of Scotland has provided a banking adviser to come to the community following the closure of its branch, it will not allow that person to meet people within the post office. Likewise, in Moffat, where we had a bank closure, the post office will not operate a vital cash machine that is required in that community. Will the Minister increase his efforts to get the banks and post offices together to get a co-ordinated approach?

[Blair McDougall]

I was going to make a cruel joke about the right hon. Member remembering the opening of that post office, but I am too fond of him to do that. He pays tribute to it, and I would gladly visit, perhaps on the way back to my constituency from Parliament one weekend. I have relatives in his part of the world, so perhaps I can double up on my reasons to visit.

As I have mentioned, we absolutely understand the centrality of banking services to the sustainability of the Post Office. We had that roundtable, and even though the banking framework has just been renewed, we have already started conversations on this. Ultimately, those will be conversations between two commercial entities, but we are facilitating them, because we recognise their importance.

[Jessica Toale (Bournemouth West) (Lab)]

Last year, I ran a community campaign to save Westbourne post office, which mobilised thousands, and the post office was kept open. I also put pressure on Post Office Ltd to reopen a full service post office in Bournemouth town centre after the WH Smith closed, and one is opening in May. Residents should not have to fight so hard for their post offices. They provide a vital lifeline, especially for older and more vulnerable residents, allowing them to access government services, and for our local businesses, as we have heard. How will the Minister ensure that post offices remain a fixture on our high streets, and play a crucial role in revitalising our high streets and town centres?

[Blair McDougall]

My hon. Friend is a constant campaigner on behalf of local post offices, and I am not surprised that she had that victory. I look forward to visiting her constituency, and she can perhaps introduce me to the local postmasters while I am there.

I have mentioned the transformation programme that we are funding, and while there will always be churn in the network, with some businesses closing and some opening, that should be part of a natural cycle, rather than because of business distress. The transformation programme is about making sure that there is good postmaster remuneration, so that businesses succeed, and I will continue to work with my hon. Friend to make sure that the post offices in her constituency—and everywhere—thrive.

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

I welcome the Government’s commitment to retaining the minimum network size of 11,500 post office branches. The Minister will know that I have campaigned extensively on this issue, not least because I do not have a single bank branch in my entire constituency. There is a particular need for post offices in rural areas where other service provision is limited. What support will be given to rural villages like Kelsall and Threapwood, where the post offices are closing? Despite every effort, there has been no possibility of reopening a branch in those villages.

[Blair McDougall]

I remember responding to a debate in which the hon. Member campaigned vociferously on behalf of post offices in her constituency, and I think today is tribute to the campaigning done by her and by other Members on these issues. I remember her telling me that her constituency not only does not have a post office, but does not have a McDonald’s, which is extraordinary. Again, we are maintaining the access criterion that means that the Post Office has to maintain accessibility for people in rural areas, but ultimately it is by making businesses profitable and making the remuneration for postmasters attractive that we will achieve what she seeks to achieve.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

In a previous statement, I learned that the directly managed post office in Wester Hailes in Edinburgh South West was to close. It was a really concerning time for the community, but Mohammed Arshad and his sons Aamir and Adam stepped up and absorbed the service into their shop, Plaza News. Residents now have longer opening hours in which to access services, and they can do their banking, pay bills and get their passport checked. It is the most British of places; people queue to send their parcel via Royal Mail, Parcelforce, DPD or, if they are feeling brave, Evri, while browsing wool, knitting needles and knitting patterns in the aisle. It is a fantastic place. While news of the transition was concerning, particularly when it first broke, I really think that the community has ended up in a better place. Can the Minister reassure Mohammed and his sons that what has been announced today will enable them to serve their community more, rather than less?

[Blair McDougall]

I am very happy to reassure Mohammed and his sons about that, and to thank them for the work that they do for the community. My hon. Friend mentions the post office staying open for longer; that is typical of postmasters, who are not just running a business, but have a really clear sense that they are serving their community. That is why getting this right, and succeeding with the vision that we have set out in this Green Paper, is so important.

[Andrew George (St Ives) (LD)]

I welcome the statement, and I welcomed the opportunity to meet the Minister to discuss these issues. A lot of people are talking about either reopening post offices—indeed, the Post Office want to see them reopen—or avoiding closure, and he knows that it all comes down to remuneration. As he will have heard, a post office operator needs to sell at least 450 stamps every hour just to achieve the national minimum wage level of remuneration. That clearly is the reason why in Porthleven and Newlyn, where the Post Office want to reopen post offices, no one is interested in taking on those services. What can the Government do to ensure that the remuneration is sufficient to ensure that the network targets he has outlined can be achieved?

[Blair McDougall]

I thank the hon. Member for taking the time to meet me to make the case for post offices in his area, which he did with some passion. From conversations not just with him and other hon. Members, but with postmasters, I am left in no doubt about the importance of ensuring that the Post Office improves renumeration for post offices, because that is how we will ensure that the network thrives and survives. We are putting half a billion pounds into network transformation, so that all the businesses, including those in hon. Members’ constituencies, are sustainable.

[Danny Beales (Uxbridge and South Ruislip) (Lab)]

I welcome the statement, and the Government’s response in the Green Paper, particularly the commitment to 11,500 branches—branches will be focused on high streets—and the focus on accessibility. In the light of that, does the Minister agree that it is ridiculous that the Uxbridge post office branch is set to close in May? Today, we found out that TG Jones, the current operator, has withdrawn from the contract for a future branch, and has ended its search for a replacement. Will he join me in urging Hillingdon council to pull its finger out, stop blaming others, and do all that it can to secure a new site, using its own assets if necessary, and in urging the Post Office to ensure that we maintain a post office in Uxbridge town centre?

[Blair McDougall]

I will perhaps use more parliamentary language than my hon. Friend did, but I absolutely would encourage everyone to work together to ensure that his constituents have access to postal services. I recognise that, while there is obviously good news today about maintaining the overall size of the post office network and the access criteria, that is little comfort for those in a community where there is such churn in post office services. I will very happily work with him on the issue that he raises.

[Kirsty Blackman (Aberdeen North) (SNP)]

In rural areas, the loss of post offices is an issue, but it is also an issue in cities, particularly when the local transport network does not necessarily link people with the post office. My community is still reeling from Spar closing the post offices in its shops. Will the Minister give us some comfort by saying that he believes that the remuneration package being offered will not just keep postmasters in the job, but encourage new postmasters to take up the job, particularly given that, as has been stated, we face another round of Bank of Scotland closures?

[Blair McDougall]

The hon. Member makes a really important point about the impact of the closure of a post office on an area. As I have said, we are maintaining the overall network, but there are still areas where there are issues. The Government obviously do not directly set the remuneration, but we are supporting the Post Office in ensuring, through its transformation, that it is profitable enough to make running a post office business more attractive. Ultimately, that is the long-term answer to the issues in her constituency, and all hon. Members’ constituencies.

[David Taylor (Hemel Hempstead) (Lab)]

I welcome the Minister’s statement, in which he referred to post offices being multi-carrier parcel hubs. One such carrier is Evri, and I visited its depot in my constituency of Hemel Hempstead last week with the GMB London region rep Danni Egan. I met dedicated couriers who were doing vital and often undervalued work. How do the Government plan to support private couriers, and companies that are willing to work alongside trade unions to ensure that these workers, too, get better pay and conditions?

[Blair McDougall]

My hon. Friend is always a doughty fighter for the rights of working people. The employment rights Minister, my hon. Friend the Member for Halifax (Kate Dearden), just disappeared from the Chamber, but was here a moment ago; she has brought through important changes to make sure that when it comes to people’s working environment, there is a floor of decency. Ofcom is looking at other private parcel couriers and the service that they provide, and I will certainly work with my hon. Friend the Member for Hemel Hempstead (David Taylor) on these issues.

[Sir Julian Lewis (New Forest East) (Con)]

Following an exemplary local campaign and petition, it is a relief to record that the Post Office has just reversed its decision not to reopen the post office in Lyndhurst, often referred to as the capital of the New Forest. Can the Minister explain whether there is any overall Government plan to co-ordinate the disappearance of banks with the emergence of banking hubs and the expectation that post offices will take on some banking responsibilities? Would it be a possible source of income for post offices if they could charge the banks in exchange for undertaking to take in cheques on accounts held with those banks? At the moment, I believe it is very hit and miss which banks allow people to pay their checks into a post office, and which do not.

[Blair McDougall]

Most banks do provide services, although I know there have recently been issues around Lloyds and the availability of cheque-cashing. I am really pleased to hear that the Lyndhurst branch has been saved, and I congratulate the right hon. Gentleman and campaigners on that. The banking framework is an increasingly important part of post offices’ income, and at the heart of that is the relationship whereby the post office is paid for providing services that have disappeared because of a lack of high-street bank branches. That is very important to the financial stability and future of the Post Office.

[Steff Aquarone (North Norfolk) (LD)]

One of the key services that the Post Office supports in North Norfolk is our bank hubs. These are crucial to our market towns, which have lost high-street banks, and to those living in nearby villages. However, I am frustrated about the number of banks that fail to provide crucial services in these hubs. I note the Minister’s comments about the voluntary and commercial basis of participation, but has he considered reviewing the Financial Services and Markets Act 2023, with a view to widening the requirement to include access to banking services? That would be of huge help to my rural residents and businesses.

[Blair McDougall]

The hon. Gentleman makes an incredibly important point. I have only been a Minister for four months, but I have already learned that it is not a great idea to trespass too far into Treasury Ministers’ territory; however, I will certainly discuss the point that he raises with colleagues there, and obviously our overall strategy is to make sure that there is access to financial services through the post office in as wide a range of communities as possible.

[Sir Ashley Fox (Bridgwater) (Con)]

I thank the Minister for his statement, and welcome his commitment to maintaining a minimum network size of 11,500 branches and all six geographical access criteria. Currently, 79% of the network is a full service branch, so why have the Government set the new 50% requirement, which is so much lower than that? Is that to allow the Post Office to downsize by stealth?

[Blair McDougall]

No, it is not, because all six of the criteria remain, and they will guarantee access to the fuller range of services that the Post Office provides. I am happy to give the hon. Gentleman that reassurance.

[Lisa Smart (Hazel Grove) (LD)]

I do not think it will have surprised any of us to hear the Minister talk about the response from our communities, who say how much they value services in a physical post office. My constituents in High Lane and around the Fiveways in Hazel Grove still mourn the loss of their post office branch, but when I talked with Post Office Ltd and local retailers after the closures, they said that it was just not viable to offer those services, as the remuneration, and the business model, just did not fit in with their needs. The Minister talked about the desire to reduce the reliance on Government funding, and about looking at additional services, like prescription collection. Will he say a little more about where he sees the business model going for the Post Office, so that we can ensure that running a post office or delivering post office services is viable, and so that my constituents get the services that they need, where they need them?

[Blair McDougall]

Obviously the business model of the Post Office is a matter for the Post Office, but it would say to me that it is about continuing that central role of banking and financial services through the Post Office, and about experimenting with new models like the hub of the high street, where post offices can partner with other organisations that perhaps do not want the full expense of their own high street presence but can use the vast network of the Post Office. Finally, it is about the technological transformation that we are funding, which will improve the customer experience and improve the renumeration for sub-postmasters.

[Helen Morgan (North Shropshire) (LD)]

I welcome the Government’s announcement today that they are going to maintain 11,500 branches, but in my constituency, outreach services that were only available maybe for an hour or two each week anyway in Cockshutt, Clee, Weston Rhyn, Knockin, West Felton and Ruyton XI Towns have all been lost because of the retirement of a single postmistress in Trefonen. The current criteria have not protected those services, and the distance criteria are not incredibly helpful when there is no public transport that can be relied on, and for a business it is an incredible waste of time to have to get in the car and drive three or maybe six miles to another post office to post something. What can the Minister say to my constituents who are faced with long journeys to get to post offices? What likelihood is there of a post office reopening in their area, and how will that help them deal with these access problems of public transport and efficiency when they are running their businesses?

[Blair McDougall]

The hon. Lady makes a really important point, and an hon. Friend asked earlier whether this is part of a wider need to regenerate high streets. It is also true that it has to be part of a wider strategy to support rural businesses like the ones the hon. Lady mentions. I have spoken many times about what we are going to do to improve postmaster remuneration through the transformation investment that we are putting in. Perhaps before I sit down and we move on to the next debate, I can also say some words of encouragement: there is a new generation of postmasters coming through, and not only is it a fantastic business opportunity for people, but it is an extraordinary opportunity to serve their community and become a key and valued figure, particularly within communities like the hon. Lady’s.

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]