Postal Services: Rural Areas

Sarah Olney Excerpts

Wednesday 4th February 2026 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the hon. Member for South Shropshire (Stuart Anderson) for securing the debate and for his excellent opening speech, which highlighted so many of the everyday frustrations and difficulties experienced by people who are not getting their post. I thank all hon. Members who have shared examples of their own.

[Rachel Gilmour (Tiverton and Minehead) (LD)]

I am very proud to represent some fantastic small businesses in my rural constituency. Mr Barclay, the owner of CardByMeLove in Tiverton, has been left to shoulder an administrative burden that is not of his own making, chasing missing parcels and placating disgruntled customers. To make matters worse, he has faced an unresponsive Royal Mail. Does my hon. Friend agree that such instances of abject failure actively undermine the ability of small businesses to operate, and cause serious reputational damage in already trying circumstances?

[Sarah Olney]

My hon. Friend is right. We have talked a lot today about the implications for individuals and I particularly want to highlight the example from my hon. Friend the Member for Horsham (John Milne). That was really appalling and I send my best wishes to his constituent who suffered that unacceptable incident. My hon. Friend the Member for Tiverton and Minehead (Rachel Gilmour) is absolutely right to point out the impact on businesses, too.

Post offices across the UK play a vital role in our local communities, with millions of people depending on them. They provide critical services on our local high streets, such as community banking, foreign exchange and the provision of DVLA services. Often those services act as a lifeline, especially for the elderly, as we have heard so many times today, and for those with limited transport options or in areas without reliable access to online services.

Currently, 99.7% of the population live within three miles of a post office and 4,000 branches are open seven days a week. Last July, the Government launched their consultation on the future of the Post Office and the Liberal Democrats welcome the steps to put post offices on a more sustainable footing. However, it is essential that the reforms protect local services and post office jobs and that no post office is closed without proper consultation with the local community.

Digitisation can improve access for some users and increase efficiency, but the Government must ensure that post offices remain financially viable and continue to offer face-to-face services for those who need them, particularly in rural areas with limited broadband or internet access, as my hon. Friend the Member for North Shropshire (Helen Morgan) pointed out. Rural communities face compounded challenges, including poor digital connectivity, cuts to public transport and the loss of local services, all of which make access to alternatives more difficult when post offices or banks close.

The decline of high street services in rural areas has been an ongoing issue in the UK, with banks and other essential services disappearing at an increasing rate. Just last week, Santander announced the closure of 44 of its branches. That has significant consequences for residents, particularly older people, those with limited digital access, and small businesses. That pattern places increased importance on the role of a local post office. In the past three years, nearly 2,000 bank branches have closed across the UK, including hundreds of rural branches, due to declining in-person transactions and the rise of online banking. Many villages and small towns now lack a single bank, forcing residents to travel long distances for financial services. Those challenges are often compounded by limited broadband or access to the internet, leading to swathes of people in rural communities being excluded from online services and digital banking.

The Liberal Democrats are concerned about the inequality of provision as the 5G network is rolled out. We believe it is wrong that people should be disadvantaged simply because of where they live. I urge the Government to prioritise major investment in broadband for underserved communities. Alternative solutions, such as banking hubs, are emerging, but there are not enough of them; the Government should facilitate more to ensure that people across the country can access vital services when they need them and to prevent digital exclusion for people in rural areas.

Royal Mail provides the universal postal service: it must deliver letters to every address in the UK six days a week at a uniform price and deliver parcels five days a week. Royal Mail’s performance is measured against quality-of-service targets, which are set out by Ofcom. The vast majority of those targets are not being achieved; in 2024-25 Royal Mail delivered only 76.5% of first-class mail within one working day of collection against a target of 93%. It also missed its target for second-class mail to be delivered within three working days of collection, as well as its targets for daily delivery routes. Last July, Ofcom announced that Royal Mail will start to deliver second-class letters on every other weekday and not on Saturdays to help cut costs. That is a deeply worrying decision and it could leave countless people who rely on those deliveries in the lurch. People need to know that their post will arrive on time so that they can go about their lives; the move flies right in the face of that.

The sorry saga of Royal Mail delays has been going on for far too long, despite the tireless work of staff members. I wish to add my comments to those of other hon. Members about the excellent work that posties do. I was privileged to visit Mortlake and Barnes delivery office just before Christmas. Its staff work incredibly hard, and I am happy to say that they are doing really well on their targets, but that is obviously not the case across the country, so more need to be done. People are rightly disappointed with the service provided. Instead of giving Royal Mail a free pass, Ofcom needs to step in and act by fully holding this failing service to account. Ofcom needs to think again and not let Royal Mail off the hook at the expense of people who expect, as a bare minimum, for their post to arrive on time.

For many rural communities, the pattern of the closure of services has been compounded by rural public transport being cut, making it even harder for residents to reach alternative services. Bus route reductions leave some villages with little to no public transport, worsening isolation. Bus services are the backbone of economic activity in communities across our country, and they are particularly crucial in rural areas, where accessibility is an issue and local amenities and services are greater distances apart. If the Government are serious about growth, they will invest in services that will boost our struggling town centres and high streets. The increase in the fare cap to £3 is a bus tax that will hit working people, rural communities and people on low incomes the most.

Rural areas of the UK face a distinct set of challenges compared with their urban counterparts. Although Government support exists through various grants, loans and initiatives, several issues, including infrastructure challenges, the phasing out of EU funding and higher costs related to transport, energy and supply chains can disadvantage rural businesses more severely.

I thank the hon. Member for South Shropshire for securing this debate. I look forward to hearing what steps the Minister is taking to ensure that communities in rural areas will be able to benefit from the vital service that post offices provide.