Postal Services: Rural Areas

Caroline Voaden Excerpts

Wednesday 4th February 2026 Westminster Hall

[Stuart Anderson]

The hon. Lady makes a brilliant point, and I would like the Minister to feed back on the Government’s approach because these services are vital lifelines for our rural communities.

Despite last week’s sticking plaster U-turn, shops face a huge increase in their business rates bill, and next year alone many businesses in South Shropshire will be hurt. The Government have already taxed jobs with the increase to employers’ national insurance and have made it harder to hire through the Employment Rights Act 2025. That means that shops such as post offices are in grave danger.

I will give an example from my constituency. One of my post offices will see an increase in rateable value from £47,500 to £49,500. Its business liability will go from £14,221 to £18,909 in the first part of 2027, so in a little over 18 months it will see a 33% increase. That directly comes off its bottom line, and will make its very small bottom line even smaller or unprofitable.

The Government committed in their manifesto to strengthen the post office network, and I fully support that, but these changes could cut access to post offices for the elderly and rural communities, pushing thousands of postmasters who have served local communities for decades out of work. I will continue to support hard-working postmasters and their customers through my campaign to protect and enhance rural public services, given their importance to local communities.

I said that in the second part of the debate, I would move on to Royal Mail and the delivery service in South Shropshire, and I will do that now. The Royal Mail is a great establishment that was founded by King Henry VIII in 1516. It has heritage. I said I would come on to Bishop’s Castle, which is a great local town. When I was a candidate, I met a group of farmers—tenant farmers, landowners and everybody in the agricultural sector—just outside Bishop’s Castle. We were talking about connectivity, such as 5G and high-speed broadband. One of the farmers said, “I’ve got a problem with my letters.” Everybody said, “What do you mean?”. He said, “I’ve got a problem with post not getting through.” We were looking at connectivity for the digital space. He said, “This is of vital importance; this has kept me awake at night.” I said, “This sounds like a really serious issue.” He said, “Yes, I’ve bought thousands of pounds’ worth of goods off the man over there; I posted the cheque a few weeks ago, and I am sure he’s not had it yet.” He brought to light, and made a joke of, a very serious issue. From there, I found out that there was one person who was delivering in the area. Nobody else knew the route so, when they were away on holiday, the area could not have mail for a week. It was a big issue.

In the Christmas period, many MPs like to go to the sorting office and thank the postmen and postwomen for the great job that they do in and around our constituencies. I have done that over many years; for the last three years, I was in Bridgnorth, Craven Arms and, this year, Ludlow. But I have seen a huge change in public opinion on the posts that I have put out on social media. People are writing, “Where’s my letter?”. Before, people would write, “Great; they do a great job.” We have all delivered leaflets in bad weather. Postmen and postwomen do that day in, day out, all year round, and I want to thank them for their service. But people are upset. They are angry.

[Caroline Voaden (South Devon) (LD)]

I have had reports of my constituents receiving hospital appointment notices after the day of their appointment, so they have missed vital medical care, and people receiving bank cards and PINs at the same time, when they are supposed to be delivered separately for security reasons. An Evri driver dumped loads of parcels in a field because it was impossible for him to get around the route in the time given by his employer. People are using private delivery services because they do not trust Royal Mail, and we are seeing serious failings. Does the hon. Member agree that Royal Mail has questions to answer about the sustainability of its network in rural areas?

[Stuart Anderson]

The hon. Member raises a really important point. Out of respect for my constituents and what they have been through, I will come on to highlight some of their concerns. When using Evri or other delivery services, everybody has learned what the whole street’s doorsteps look like when they see the photos from the delivery service. What is happening at the moment is not acceptable.

A decade ago, Royal Mail was delivering about 20 billion letters per year. I talked about 1516, when it was first founded. It got to a point of 20 billion letters. That has fallen to about 6.7 billion, and is expected to drop to 4 billion in the next four years. Under the Postal Services Act 2011, Ofcom is responsible for ensuring that the firm carries out its functions under its universal service obligation. The latest results show that the company did not meet its delivery targets for first or second-class post from July to September 2025. In October, Royal Mail was fined £21 million for missing its annual delivery targets.

Future of the Post Office

Caroline Voaden Excerpts

Monday 14th July 2025 Commons Chamber

[Caroline Voaden (South Devon) (LD)]

Since the election, three post offices in my constituency have closed—in Churchstow, Aveton Gifford and Dittisham—through the resignation of postmasters and, in one case, the death of the local postmaster. Each time, the Post Office says that it is carrying out a review, and each time it quickly decides to close the post office and, as the Minister himself said, the beating heart of those communities is then lost. Dittisham residents must now travel nearly 5 miles to the nearest branch. There is no bus, so elderly residents who do not drive cannot get to the nearest post office. Will the Minister guarantee that while the consultation is ongoing, no more rural post offices will be lost, and that as part of the Government’s thinking, more flexibility could be built into the Post Office’s business model, so that innovative and enthusiastic potential postmasters who want to reopen post offices in some of these villages can be allowed to do so?

[Gareth Thomas]

One crucial issue that we considered when we developed the Green Paper was how to address postmaster remuneration, because in some communities the Post Office has struggled to find people who are willing to take on the running of a franchise. It is important that Post Office senior management have improved postmaster pay, with £20 million last financial year, a commitment to £66 million this financial year, and a plan to go even further. I hope that will make a significant difference to the ability to find people to take on franchises, and not just in urban areas but in the rural areas the hon. Lady describes. She will forgive me for not knowing her constituency as well as she does, but if she wants to contact me about particular issues with branch closures, I would be happy to look at those.

Businesses in Rural Areas

Caroline Voaden Excerpts

Wednesday 18th June 2025 Westminster Hall

[Caroline Voaden (South Devon) (LD)]

It is a pleasure to serve under your chairmanship, Mr Western. As we know, rural businesses are the backbone of our communities, but they are being asked to compete with one hand tied behind their back. Across South Devon, local entrepreneurs—farmers, shopkeepers, tradespeople, producers and publicans—are working tirelessly to keep their communities vibrant, providing jobs, supporting local supply chains and bringing people together, but the odds are stacked against them.

One of the most urgent and unacceptable barriers that rural businesses face is poor broadband and mobile phone coverage. In some parts of my constituency, people cannot send an email without it crashing halfway, and taking card payments is a gamble. How can a small rural business compete in a digital economy if it cannot get online? Poor coverage is not just an inconvenience; it is a direct threat to livelihoods.

I will also address the way in which the Government are implementing the extended producer responsibility scheme, which is hitting local hospitality businesses hard. I welcome the Government’s efforts to make manufacturing more sustainable, but that must not come at the cost of adding further financial uncertainty for small businesses that are already under pressure.

The New Inn, a historical pub in the small village of Moreleigh in my constituency, has been informed by the brewery that supplies it that prices will increase by 7p per bottle of beer and cider and up to 21p per bottle of wine. The brewery will not deal with the bottles afterwards, however, so the pub also has to pay for the disposal of the glassware. The proprietor said:

“in effect we are paying twice…The hospitality trade is being unfairly targeted by this government. Trading is becoming increasingly difficult. After our business just surviving Covid—we are still paying the bounce back loan—then being hit with the Employer’s NI hike and now this, I am beginning to wonder if after 14 years it’s really worth it any more.”

These pubs are not major polluters; they are local employers and community hubs. They are vital to the social and economic life of our villages and towns. More than just pubs, they are third spaces and social hubs that are vital to community life. Yet under this scheme they are treated the same as massive supermarket chains. That is unfair, out of touch and economically harmful.

--- Later in debate ---

[Sarah Olney]

My hon. Friend is absolutely right. There is always the danger that we get into a vicious circle of declining transport provision leading to declining demand for services, which then lose viability and are withdrawn. The point about investment in public transport that my hon. Friend the Member for North Norfolk made so eloquently at the start of this debate would go a long way to managing some of those issues.

Bus route reductions leave some villages with little to no public transport, which worsens isolation. Bus services are the backbone of economic activity in communities across our country, but they are particularly crucial in rural areas, where accessible local amenities and services are greater distances apart.

[Caroline Voaden]

In fact, in the spending review, the whole of rural England was given a seventh of the money for transport plans that was given to urban areas. Does my hon. Friend agree that that is not sufficient to sustain and improve the rural bus transport network as much as we need?

[Sarah Olney]

My hon. Friend is absolutely right. The way that some of the infrastructure and transport investment moneys have been distributed in the recent spending review has raised some eyebrows. Investing in rural bus services would certainly boost our struggling town centres and high streets, which would lead to economic growth.

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. Although the Government have made their red lines on taxation clear, a 50% increase to the bus cap is just taxation by other means. The Government have been left to make difficult choices, but they cannot allow the burden of fixing the Conservatives’ mess to fall on working people and small businesses. Neither Labour nor the Conservatives before seems to understand that for rural communities, having a reliable bus service is critical to enable daily tasks and commutes to be completed. I was also reflecting on the point made by my hon. Friend the Member for North Norfolk about the impact of a lack of suitable transport infrastructure on training and the workforce.

Last week, the Liberal Democrats welcomed many of the Government’s public infrastructure and public transport investment announcements. However, we are concerned by the lack of provision allocated to rural bus services. Many communities without combined authority mayors—from Cumbria to Cornwall, and Norfolk to Newton Abbot—seem to have been left without new support for their transport networks. The Liberal Democrats continue to call on the Government to make sure that these areas see the investment that they so desperately need.

As the Government start implementing the new public infrastructure announcements, they must put the construction sector on a sustainable footing by introducing, in tandem, an industrial strategy to actually implement the projects. The general secretary of the Prospect trade union warned that the UK lacks the skilled workers required for new defence and nuclear infrastructure projects. Similarly, Make UK and the Federation of Small Businesses have highlighted a shortage of skilled works as a critical stumbling block for growth. Workforce shortages often disproportionately affect rural areas, with limited local training opportunities and housing affordability issues exacerbating the problem, making it harder for businesses to expand.

As we await the much-anticipated industrial strategy, I ask the Minister to ensure that it will include a strategic framework to effectively address the needs of businesses in rural areas, by collaborating with local, regional and devolved authorities in England, Scotland, Wales and Northern Ireland to establish how the strategy will support and facilitate industrial regeneration and innovation across all UK nations and regions. My Liberal Democrat colleagues and I look forward to scrutinising the details of the proposals as they are brought forward.

Businesses and 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 my hon. Friend the Member for North Norfolk for securing this debate, and I look forward to hearing from the Minister about the steps the Government are taking to ensure that businesses in rural areas receive the additional support they so desperately need.

Oral Answers to Questions

Caroline Voaden Excerpts

Thursday 12th June 2025 Commons Chamber

[Gareth Thomas]

The hon. Gentleman will not be surprised to know that we receive representations on the VAT threshold from a number of small businesses, and we ensure that they are heard by Treasury colleagues. He will recognise that VAT raises a significant sum of money for the public finances, and given the mess that we inherited, we had to take some difficult decisions about those public finances to protect funding for hospitals in his constituency, and indeed other public services across the country.

[Caroline Voaden (South Devon) (LD)]

Recently imposed general product safety regulations have added yet another layer of cost and complexity to exports to the European Union. That is particularly hitting entrepreneurs and microbusinesses, many of which have had to end exports to their EU customers. Did the Department have any discussions with its EU counterparts during recent trade negotiations about exempting small and microbusinesses from those rules? If not, is it doing any work to support small businesses in particular, which have had to end exports to EU customers because of the new regulations?

US-UK Trade Deal: Northern Ireland

Caroline Voaden Excerpts

Monday 12th May 2025 Commons Chamber

[Jonathan Reynolds]

I regularly meet all colleagues across the United Kingdom to keep them updated on matters of trade. Those were specific meetings in relation to what was being negotiated with the US. The final decision on any trade agreement is with myself and the Prime Minister. We do not seek formal agreement per se from colleagues in the devolved Governments, but we keep them informed as to what we are negotiating, the kinds of issues coming up on the other side and how we deal with that. It is not for me to reveal the content of those conversations, but the kind of reasonable concerns being aired in the Chamber today, about how things like the reimbursement system works and the feedback from Northern Ireland businesses, were of course a part of that conversation. We committed again, as I have done here at the Dispatch Box, to work with them on effective solutions to those problems.

[Caroline Voaden (South Devon) (LD)]

The Secretary of State says that free trade is essential for growth. What a shame that the trade across the UK is still so badly affected by us not being part of the customs union. When Labour was in opposition, he called for

“a proper role for Parliament in how trade deals are ratified”,

and argued that there needed to be

“a much higher level of scrutiny than we are seeing now”

under the previous Government. There are clearly many questions about how the deal will affect businesses in Northern Ireland. We have seen how the Australia trade deal has been allowed to undermine British farmers across the UK, animal welfare and food standards, thanks to a lack of parliamentary scrutiny under the Conservatives. Farmers in my constituency are worried that American agribusiness will undercut them with inferior meat. I hear what the Minister said about upholding SPS—

[Madam Deputy Speaker (Caroline Nokes)]

Order. Can the hon. Lady get to the question, please?

[Caroline Voaden]

Will the Minister provide reassurance that Members of this House will be given the opportunity to fully scrutinise and vote on the new trade deal with the United States?

[Jonathan Reynolds]

The hon. Member will have heard my earlier answers. I believe that Parliament should play a role in scrutinising trade legislation, and indeed any international agreement, but it is not the case in the United Kingdom that we have formal “up or down” votes on any treaty. We vote on the implementation of those agreements, and the responsibility for negotiating and agreeing those is with the Government, rather than Parliament. I am not aware of any substantive proposal to change that system. It is certainly not something that the UK Government today are committed to doing.

The hon. Member talks about the impact of leaving our existing trade relationships in the customs union. That was part of that referendum. I understand how people feel intensely about that. [Interruption.] People have different interpretations of why they voted. We can relive the argument forever or we can focus on the future, on reducing barriers to trade and on the kinds of agreements delivering advantages for every part of the UK, and that is exactly what we are doing. Had we in this case still been part of the customs union, there would be no breakthrough with the US or the India trade deal. All colleagues need to balance up the two things alongside each other. In relation to the automotive sector, that lack of a breakthrough would have meant significant job losses this week in the United Kingdom, and that would have been very painful for all of us.

Groceries Code Adjudicator

Caroline Voaden Excerpts

Tuesday 25th February 2025 Westminster Hall

[David Chadwick]

I thank my right hon. Friend for his intervention. I agree wholeheartedly. He will be aware that the levy that supermarkets pay to fund the Groceries Code Adjudicator has not been increased since 2018, despite the massive increases in food prices and supermarket profits since then.

[Caroline Voaden (South Devon) (LD)]

In November 2024, research by Riverford Organic Farmers, based in my constituency of South Devon, showed that 61% of farmers are concerned that they will not be operating within the next year but only 25% of them believe the claims that the big six grocers support British farmers. Would my hon. Friend agree that the big six need to do more to support our farming sector?

[David Chadwick]

I thank my hon. Friend for her intervention. She is absolutely right to highlight the power imbalance between the producers and the retailers. It is quite right that she also focuses on the important research that has been done on this topic by organisations like Riverford. The evidence they have provided has been crucial in helping us push forward the campaign for fairer prices for producers.

It is my belief, and that of many farmers and producers I represent, that the Groceries Code Adjudicator needs to be strengthened, better resourced, and its remit expanded if we are to ensure fairness in our supply chain.

Pub and Hospitality Sector

Caroline Voaden Excerpts

Tuesday 22nd October 2024 Westminster Hall

[Caroline Voaden (South Devon) (LD)]

I am grateful for the opportunity to contribute to today’s debate about the vital support needed for our pubs and our broader hospitality sector, and I thank the hon. Member for Mid Leicestershire (Mr Bedford) for securing it.

In South Devon, the hospitality industry is more than just a business; it is the lifeblood of our communities. Our area boasts over 700 pubs and restaurants, so there are far too many to name. I will not single any of them out, but they are all brilliant and they employ more than 12,000 people. This sector does not merely create jobs; it fuels our local economy, contributing over £500 million every year. However, we know that many of those venues are at breaking point.

I also want to raise the issue of business rates relief. One family-run hotel in my constituency has been in operation for over 127 years and faces an uncertain future. If the business rates relief cap is lifted, it will be forced to find an additional £110,000 a year just to keep its doors open. For a business that has served our community for generations, that is a real threat to its very survival, and that situation is not unique to South Devon. Across the country, pubs are closing at an alarming rate. Covid presented a huge challenge to the industry, but the fallout from Brexit is still keenly felt. Disrupted supply chains and the increased costs of importing goods, as well as severe staff shortages due to the end of free movement, have all compounded the difficulties for our pubs and restaurants, many of which are now having to shut their doors a couple of days a week, which has a knock-on effect on local communities.

In response to all those mounting challenges, I have written to the Chancellor to urge the Government to extend rate relief for the hospitality sector. Temporary reliefs on business rates and alcohol duties are welcome but insufficient to address the long-term sustainability of the sector. We need bolder reforms that will give our hospitality venues the breathing room they need to invest in their people, their properties and their future. The Liberal Democrats are committed to real and lasting reform, including business rates relief and increasing the employment allowance for small businesses. Policies such as those are not just a lifeline for businesses but an investment in the future of our people, our economy and our communities.