Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential merits of amending company law to move from shareholder primacy towards a stakeholder-governance model.
Answered by Blair McDougall - Parliamentary Under Secretary of State (Department for Business and Trade)
Under Section 172 of the Companies Act 2006, directors have a fiduciary duty to have regard in their decision-making to the interests of employees, customers and suppliers, and to the impact of the company’s operations on the community and the environment. Section 172 enshrines in law the principle of “enlightened shareholder value”, which recognises the relevance of stakeholder interests to the long-term success of a company. This contrasts with the “shareholder maximisation” model adopted in other jurisdictions, in which directors’ sole duty is to maximise returns to shareholders. The Government has no plans to amend Section 172.
Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what recent progress he has made on doubling the size of the mutuals sector.
Answered by Blair McDougall - Parliamentary Under Secretary of State (Department for Business and Trade)
As part of the Autumn Budget announcements, the Department for Business and Trade (DBT) launched a Call for Evidence on Business Support for Co-operatives and Mutuals. This will be open across Great Britain for 12 weeks.
DBT ensured that for Financial Year 25/26 Growth Hubs in England offer support to businesses with alternative business models – including Co-operatives and Mutuals, as a condition of funding, and included more information on Co-operatives and Mutuals through the highly successful Help to Grow Management programme.
DBT is looking at how to integrate support for Co-operatives and Non-Financial Mutuals within the government’s overall approach for supporting SMEs, including via the Business Growth Service.
DBT continues to work closely with the sector, including the new Mutual and Co-operative Business Sector Council.
Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what recent assessment his Department has made of the potential implications for its policies of international best practices in embedding stakeholder governance into company law.
Answered by Justin Madders
Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees, customers and suppliers, and also to the impact of the company’s operations on the community and the environment. Large companies must report annually on how their directors have met this duty. Section 172 also enables companies to amend their articles of association to adopt a purpose of their own choosing, which may include placing particular weight on environmental, stakeholder or other interests.
The United Kingdom Government is an active member of the OECD Corporate Governance Committee which regularly discusses and shares good practice on corporate governance.
Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential merits of requiring companies to amend articles of association to reflect (a) environmental and (b) stakeholder responsibilities.
Answered by Justin Madders
Section 172 of the Companies Act 2006 requires company directors to have regard in their decision-making to the interests of their employees, customers and suppliers, and also to the impact of the company’s operations on the community and the environment. Large companies must report annually on how their directors have met this duty. Section 172 also enables companies to amend their articles of association to adopt a purpose of their own choosing, which may include placing particular weight on environmental, stakeholder or other interests.
The United Kingdom Government is an active member of the OECD Corporate Governance Committee which regularly discusses and shares good practice on corporate governance.
Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether he has had discussions with Ofcom on stronger mechanisms for holding Royal Mail accountable for improving the reliability of letter deliveries.
Answered by Justin Madders
It is for Ofcom to set and monitor Royal Mail’s service standards, and to decide how to use its powers to investigate and take enforcement action. While the government does not have a role in Ofcom’s regulatory decisions, in January I met with representatives from Ofcom who gave their reassurance that Ofcom is closely monitoring Royal Mail’s performance and its action plan to drive improvement in quality of service.
In December 2024, following its investigation of Royal Mail’s performance in the 2023-24 financial year, Ofcom fined the company £10.5m because of its failure to significantly improve service levels. The government expects that Ofcom will continue to closely monitor Royal Mail’s performance and take action where appropriate.
Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to encourage (a) the Royal Mail, (b) the Post Office and (c) Ofcom to collaborate on the (i) design and (ii) implementation of an Address and Collect service, ensuring access to mail for individuals without a secure address.
Answered by Justin Madders
The government recognises the importance of access to post for all users, including those that are without a secure address. The universal postal service is intended to provide an accessible postal service for all.
An address and collect service solution involving Royal Mail and the Post Office would be an operational matter for those businesses but their further joint working, including with Ofcom, on this issue would be welcomed by government.
Asked by: Patrick Hurley (Labour - Southport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he plans to take to use the Postcode Address File to support (a) innovation, (b) small businesses and (c) the economy.
Answered by Justin Madders
The Postcode Address File is owned by Royal Mail, not the Government. Royal Mail’s terms of access to the Postcode Address File are regulated by Ofcom, the independent regulator for postal services.