Postal Services: Rural Areas

David Mundell Excerpts

Wednesday 4th February 2026 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Stringer. I am grateful to my hon. Friend the Member for South Shropshire (Stuart Anderson), and to the hon. Member for Corby and East Northamptonshire (Lee Barron) for a useful tip; perhaps if I had put my grandson Theo’s birthday card in a parcel, it might not—even though posted first class from Moffat to Troon—have taken three weeks to arrive. Fortunately he is only two, so he has not held it against me, but my constituents have had similar experiences.

First, we have to pay tribute to our posties, because what is happening is not their fault. It is the direction that is coming from above that is at fault, and the obsession with parcels. Royal Mail is meant to deliver mail, not just parcels. It is not a parcel delivery company. I hope the Minister can reinforce that message. In my constituency, Royal Mail has taken many steps to make it less attractive for people to post mail, particularly, as the hon. Member for North Shropshire (Helen Morgan) mentioned, the surreptitious introduction of early collection times. If someone wants to post a first-class letter, in many parts of my constituency they have to do it before 9 am, otherwise they have to travel an inordinate distance.

In rural communities in particular, people still often suffer from poor broadband and mobile reception, and are generally older. That is the group of the population for whom the Royal Mail and its services is most important. I pay particular tribute to Barry Knock, the chair of the Quothquan and Thankerton community council in the Clydesdale part of my constituency, who has constantly held Royal Mail to account for its failures. As we have already heard, if someone is off or sick, the mail is not delivered.

The Minister is an experienced campaigner, and he knows that it is quite different sending somebody out into a modern housing estate to deliver something than sending them into a vast rural area. We need people who know those localities to do that job. I want the Minister to take away a specific issue: we are heading into elections for the Scottish Parliament and other elections, and a large number of people in these rural communities have a postal vote. I want the Minister to be able to tell me that he is satisfied that Royal Mail has the capacity to deliver the postal votes and return them to the election officers, because that is a very significant issue. Those deliveries did not go well, certainly in my constituency, during the 2024 general election. When Members raise issues with Royal Mail, they just get excuses; hopefully the Minister can put a rocket up the company.

--- Later in debate ---

[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.

Oral Answers to Questions

David Mundell Excerpts

Thursday 29th January 2026 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

For the final question, I call David Mundell.

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

As co-chair of the all-party parliamentary group on Latin America, I was interested to note that, after 25 years of negotiations, the EU has announced a trade deal with the Mercosur South American trading group. What is the position of the UK Government on a trading agreement with Mercosur?

[Chris Bryant]

It is certainly true that now that the EU has secured a Mercosur deal, having taken 25 years to do so, there is a danger that British business will be left out and excluded because there will be preferential rates for European businesses. It is something we are looking at very closely, and I hope to be able to update the right hon. Gentleman very soon. As he knows, I am passionate about trying to increase our exports to Latin America. I would just note that some companies, such as Inca Kola, were created by British firms.

INEOS Chemicals: Grangemouth

David Mundell Excerpts

Wednesday 17th December 2025 Commons Chamber

[Chris McDonald]

I thank my hon. Friend for the close attention he gives to this area through his chairmanship of the Energy Security and Net Zero Committee. He started his question by mentioning the 500 jobs at Grangemouth, which perhaps we have not discussed enough. I really do understand how this announcement from the Government will bring certainty to those workers at Grangemouth as well as their families and their local community. It is incredibly important that we acknowledge that.

On energy costs, my benchmark is how competitive we are in Europe. I mentioned how our electricity costs—particularly our industrial electricity costs—are cheaper than those in some countries in Europe, such as Italy, the Netherlands and Spain, but more expensive than in France and Germany. The British industrial competitiveness scheme will take us a good way towards that, and we are already seeing the benefits of our investment in clean energy. As I have previously said at the Dispatch Box, from 2030 onwards we will see some significant reductions, particularly as we are bringing forward interconnectors that will connect not only the UK with other countries, but wind farm to wind farm—it is always windy somewhere in the North sea—which will help to release capacity and drive down costs. My hon. Friend will see that through both our policy measures and our investment in infrastructure.

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

It would be wrong not to commend the hon. Member for Alloa and Grangemouth (Brian Leishman) on this announcement as he has always been such a strong advocate for jobs at Grangemouth. Indeed, owing to his willingness to speak out against his Government, he lost the Labour Whip.

I noted from the photographs issued around today’s launch that workers at Grangemouth did not seem overly happy to see the Chancellor. Perhaps that was because they know that her policies, which continue to attack the oil and gas industry—particularly through the windfall tax—are leading to the undermining of the oil and gas industry across Scotland.

[Chris McDonald]

I thank the right hon. Gentleman for mentioning my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman). I am sure that he would have liked to be here, but he was invited by the Secretary of State for Scotland to join him on the visit. He and I have spoken over the last few weeks. I assure the right hon. Member that I very much value my hon. Friend’s contributions, his relationship and his support, and I know that he is as pleased as I am by the announcement.

Oral Answers to Questions

David Mundell Excerpts

Thursday 30th October 2025 Commons Chamber

[Peter Kyle]

Again, my hon. Friend is a great advocate for the community that he represents in Parliament. I am very excited to meet the businesses that he references. We hit a milestone in the second quarter of this year, because the UK started to produce more than 50% of its energy using renewables. His community as well as other communities around the UK will benefit from the transition to renewables. This is an exciting time to do business, and this is an exciting sector of our economy; it is one of the fastest growing sectors in the global economy, and right here in the UK we are benefiting the most from it.

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

A major lodge development at Irvine House near Canonbie, and the potential for a Center Parcs in the borders, show that there is still great potential for jobs in the tourism industry my constituency. Will the Secretary of State encourage the Chancellor to follow the advice of the Scottish Hospitality Group and give hospitality a fair deal in the Budget, rather than clobbering it as she did last time?

[Peter Kyle]

I assure the right hon. Gentleman that every sector of our economy is at the forefront of the Chancellor’s mind as she stabilises and recovers our economy from the 14 years of chaos and confusion wrought by the Conservative party. I also assure him that there will be no repeat of the mini-Budget that the Conservatives inflicted on our economy, the consequences of which we are still suffering today, which the right hon. Gentleman voted for and supported. We inherited a growth emergency because of the decisions taken by the Conservative party in government. We will recover from it; we will build back better; and we will make sure that every sector, including hospitality, benefits from the great economy we are moving towards.

US-UK Trade Deal: Northern Ireland

David Mundell Excerpts

Monday 12th May 2025 Commons Chamber

[Jonathan Reynolds]

That has never been our position. It was never the position in our manifesto and it was never our position after the introduction of Brexit. The hon. Gentleman talked about the promises that Brexiteers made. I am not accountable for those and never have been, and frankly I am relieved about that. I would simply ask him whether an economy of our size—a G7 economy—can contract out trade policy to a customs union when we are not part of the political arrangements sitting behind that. I just do not see that as realistic.

I hear the hon. Gentleman not get behind, for instance, the reduction in the Indian tariff on Scotch whisky from 150% to 40%, but he should promote his own interests a bit more strongly. Regardless of how Members voted in the referendum on the European Union, they should get behind the benefits for every part of the United Kingdom, whether in the deal with India or that with the US. It will not be the same as being part of the single market—that political decision was taken in the referendum—but despite that we can build the best possible position for every bit of the United Kingdom. I think we should look to the future, rather than relive the battles of the past.

I know this will not mean much to the SNP, but the political uncertainty after the referendum while we did not have the new arrangements in place really did cause harm to the UK. It was in itself a detriment, and that is exactly why the continued obsession about the constitutional position of Scotland is not in the interests of Scottish businesses. We are looking to the future, and agreeing deals that benefit every part of the UK, and if the hon. Gentleman cannot get behind that, so what? We will defend Scotland’s interests, and make sure it is getting better access to every market in every bit of the world.

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

Although it pains me, as it does, to do so, I have to concede that whiskey is produced in Northern Ireland. When the Minister for Trade Policy and Economic Security made the statement on the Indian trade deal, he understandably placed great emphasis on the benefits to the Scotch whisky industry and indeed the UK whisky industry from that deal, but when he made the statement on the US deal, he said precisely nothing about whisky. Can the Secretary of State clarify exactly what is the current position on whisky with the US, and what is his aspiration?

[Jonathan Reynolds]

First, while we would all recognise the superiority of the quality of Scotch whisky, the deal with India also covers exports of gin. I was at the Beefeater factory, not far from here, last week. The deal also covers Northern Irish whiskey; Bushmills is part of this deal, too.

The right hon. Member’s question on the US is about the reciprocal tariffs put in place; obviously, no sectoral tariffs have been put in place on anything affecting whisky production. That conversation is part of the wider ongoing discussion about the reciprocal tariff, or the 10% as it is sometimes referred to. I believe there is no need for that and that it can come down, but there will have to be movement on the US side for that.

I think we could reach agreement on a whole range of tariff lines and product areas that would further deepen the trading relationship between ourselves and the US, and that is why we are committed to continuing this conversation. Of course, the UK is not a high-tariff country—as it is, what tariffs we have in place are relatively modest—and we therefore have to make sure that what we agree is in the interests of both countries. However, that will be part of the ongoing conversation, which includes the digital agreement we are seeking to strike and a whole range of other areas of interest to Members across the Chamber.

Oral Answers to Questions

David Mundell Excerpts

Thursday 13th March 2025 Commons Chamber

[Jonathan Reynolds]

I am incredibly grateful to the Chair of the Business and Trade Committee for that question. He is right to say that the challenge here is not just the direct trade we have with the US, but the impact of trade diversion. He knows we already have 16 anti-dumping, anti-subsidy measures in place against 14 separate product categories. Once the annual tariff-free quota is hit, a 25% tariff applies to those. I can tell him and the House today, though, that I will support UK Steel’s application to the Trade Remedies Authority for a review of the steel safeguards—we do have to think about what will be coming—and a new one for the aluminium sectors.

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

I am sure that Ministers will join me in welcoming the £90 million investment by dairy firm Arla in the plant in my constituency, which will create up to 90 jobs. Does not that reinforce the fact that agriculture remains at the heart of the rural economy in constituencies such as mine? Should not the Government be supporting that industry, rather than trying to destroy it?

[Mr Alexander]

I can assure the House that we do welcome the investment of which the right hon. Gentleman speaks. Speaking on behalf of the constituency of East Lothian, I recognise fully the importance of the rural economy and agriculture’s contribution thereto. That is why we are in regular dialogue with the NFU and other key stakeholders.

Oral Answers to Questions

David Mundell Excerpts

Thursday 30th January 2025 Commons Chamber

[Justin Madders]

The experience of the pandemic really brought home that millions of people in this country do not qualify for statutory sick pay. We are determined to deal with that and I am happy to meet my hon. Friend to discuss the issue in more detail.

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

Yesterday, out of the blue, Bank of Scotland announced that it will close five branches in my constituency, leaving hundreds of square miles of the rural south of Scotland without a single bank branch. While we must work with Link and others to ensure access to cash in those communities, does the Minister share my concern not only that this will leave empty premises prominent on the high street, but that it sends a message that the banks are giving up on rural areas and on those who do not bank online?

[Gareth Thomas]

I recognise that the right hon. Gentleman’s constituents will be concerned about the Bank of Scotland’s decision. He may know that more than 9,500 bank branches closed between 2010 and 2023. That is why the Government are determined to ensure the much more widespread roll-out of banking hubs, with a commitment to roll out 350 banking hubs. I strongly suggest to the right hon. Gentleman that he get in contact with Link and Cash Access UK to make the case for a banking hub in his constituency. If I can help in any way, I will be happy to consider doing so.

Local Post Offices

David Mundell Excerpts

Thursday 30th January 2025 Commons Chamber

[Gideon Amos]

The right hon. Member is quite right. I know Billericay and its post office, and I certainly support his remarks. Post offices are simply too important to be lost, and we have to ensure that they are not lost in towns like Wellington and Taunton, and elsewhere across the country.

Too often, there are deep concerns about the future of local post offices. Today’s announcement about changes to the Royal Mail universal service obligation adds to that uncertainty, creating further pressure on an already fragile network. It is disappointing to see that obligation weakened, with potential knock-on effects on the viability of post offices. That makes it even more important that post offices continue to play a role all throughout the week, in selling stamps and providing postal services, even if deliveries are being cut back.

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

I thank the hon. Gentleman for taking my intervention and for the points that he is making. In response to a question I asked, the Government said that more than one in 10 post office services are not provided in what people would recognise as a post office. Some services are provided out the back of a van for a few hours a week, but they are still held up as complete post office services in the figures on post offices and how many people access them. Does he agree that we must provide complete post office services in all the communities that need them?

[Gideon Amos]

I agree with the right hon. Gentleman. There is a risk that the statistics are somewhat skewed by the fact that a parcel drop-off point or a van that visits occasionally may be considered post offices.

--- Later in debate ---

[Rebecca Smith (South West Devon) (Con)]

In September 2021, Plymstock post office closed. It was part of the collateral damage of the closure by Morrisons of more than 80 newsagents. It was a legitimate business decision no doubt, but it highlights the issue of the post office franchise model. Those businesses just disappeared from the high street. What followed was a public petition, which I started. There was huge public disappointment, as older populations are used to using cash. The postmistress of the next nearest post office wants to retire, which leaves just one bank with one cash machine. The next nearest cash machine is 10 or 15 minutes’ walk away. Importantly, this was the loss of an anchor at a shopping centre that is vital for the local community.

Working closely with the Post Office and local businesses, we sought to secure a new post office, but it is a challenge to make the franchise business model work. That will be even harder now with the employer increased national insurance contributions that businesses face. I raised this matter with the Minster today and he gave me a helpful answer. He mentioned the increase in the sub-postmaster pay offer, but there remains the issue that we are not replacing closing post offices on a like-for-like basis.

Plymstock had a three-counter model, which the Post Office has offered to replace with a local franchise. It is offering just £15,000 to £18,000 a year to run that service within an existing or proposed business. We have to add on to that rent, business rates, staff, and set-up and running costs, because, at the moment, there are no businesses on the Broadway, where the post office was located, able to take on that service.

There is also a challenge with the franchise model, in that it is often not possible to tag on additional services at the beginning that would make the business more profitable. For example, passport processing is not always offered at the start, and those extra services can often be the difference between a business model that will work and one that is unsustainable.

Ironically, on 22 May, the day the general election was called, I met again with the Post Office—some three years later—to discuss the issue. The Post Office raised with me the statistics on what was needed. It thought that the use of a post office in the area would increase over time, but it would not take into account the fact that a neighbouring postmistress was seeking to retire. Therefore, the data showed that the area did not need anything more than a post office local. All it took was a tiny bit of horizon scanning to realise that there would be that need and that demand shortly. We got stuck in a Catch-22 situation. The Post Office reassured me that it had further people interested in running the post office, but, nearly one year later, nothing has come to fruition. The fight continues.

As has been mentioned by other hon. Members, there is the option of banking hubs. The work of the Conservative Government to trailblaze this modern solution for communities has helped remarkably, and I am sure that we will hear lots about that this afternoon.

[David Mundell]

To reinforce the point that the hon. Member for Taunton and Wellington (Gideon Amos) made, there is a real concern that communities that are looking to have a banking hub do not have a functioning post office in the way that we would understand it. Does my hon. Friend agree with me that the arrival of banking hubs is actually the opportunity to put a post office back into those communities as well?

[Rebecca Smith]

I absolutely agree with my right hon. Friend. I think that all of us in this Chamber will agree that having a post office within these banking hubs is vital. We have seen 76 hubs open across the country in the last few years. Clearly, there is an appetite and a need for them, but it does not make sense to the public, as has been alluded to, that they can pitch up to these places with a post office sign outside, but they cannot even buy a stamp inside. I do hope that that can be rectified.

The other challenge is that an area cannot have a banking hub while a bank is still present. Perhaps that is the silver lining to yesterday’s announcement that the Lloyds bank in the same location, on Plymstock Broadway, is closing in November. That will be a massive hit, as it has the only cash machine for the entire community. However, as I have been saying to my constituents, perhaps the silver lining is that we will see more banking available and, if the Government heed our calls today, that future post office as well. Perhaps we have to circumvent the system to get what we want. It would mean that we can now explore a banking hub and retain those banking services.

Clearly, there is a long way to go. I am sure that there are Members in the Chamber today who have secured banking hubs. I am told that it takes a big fight, but most of us are here because we are campaigners. Within an hour of the announcement of the closure of the Lloyds bank, we went out to the press, and we will do all we can to get a banking hub. However, I want to be able to reassure my constituents that this will solve the lack of a post office as well, so I do hope that we can see that policy change. There is a long way to go: we have to secure a venue, an operator and that policy change to see our post office services return.

Since I shared the idea yesterday, there has been huge local interest. People are really getting the idea of a banking hub—they are on board; it is what the community wants. I have had two conversations already with potential operators, one of whom I know runs a service in a neighbouring constituency and is doing a really good job there. So we have the interest; we have businessmen and women who want to do this. They have not been able to deliver it on the franchise model, but it seems that they can deliver it on the banking hub model.

We want to see this idea delivered, because even the shopping centre knows that, in order to get the footfall for all the other local businesses, having a bank and a post office for access to cash is vital. Even the local library needs that cash access, and if it is not available, there is going to be a problem. Local people need these vital services and amenities, and that is why we need to secure a banking hub.

I say to my constituents, particularly those in Plymstock, that they have my absolute commitment to fighting for this. I would add that we have some fabulous small community post offices in our villages; it is not all a bad news story. The Newton Ferrers shop, for example, has a fabulous post office counter, and attempts are made right across our constituencies to deliver these services for our constituents. However, where there is a problem like the one we are facing today, with closing banks and closing main branches, we do need to step up and take action.

To close, I will ask a few questions of the Minister. I have highlighted the reality of the current post office offer and, as I said, it is not all bad. He has kindly said that I can share some details about my constituency with him, which I will do, but I think it would be good to get the answers on the record in the Chamber. Does the Minister accept that downgrading a service from a main branch to a franchised local service hinders the replacement of post office services? Will he explore the fact that the current Post Office dataset does not allow for what will happen in the future? If a retirement is coming down the road, we should be able to business-plan around that and at the moment we cannot. Can the Minister reassure the House that he remains committed to delivering banking hubs, and say whether will they will incorporate postal facilities so that we can deliver for our constituents?

Fireworks: Sale and Use

David Mundell Excerpts

Monday 9th December 2024 Westminster Hall

[Several hon. Members rose—]

[David Mundell (in the Chair)]

I will call Lizzie Collinge and then Patrick Hurley. If there is anyone else who has not been called and wishes to speak, please can they indicate that to me?

Oral Answers to Questions

David Mundell Excerpts

Thursday 31st October 2024 Commons Chamber

[Sarah Jones]

I agree with my hon. Friend. It is essential that local communities see the benefits of landmark investments. I am pleased that Blackstone is investing £110 million in a fund to support local skills training and transport infrastructure. I am happy to have a conversation with my hon. Friend about what more can be done.

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

Farming and agricultural businesses employ thousands of people in my constituency, and they make a huge contribution to the local economy. Can the Minister set out exactly how yesterday’s Budget will help them to develop and grow?

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

Farmers, like any other business people, need the stability that will be delivered as a consequence of our fixing the foundations, as we set out yesterday. I too represent a constituency with a number of farmers, and I am aware of the concerns that have been raised about inheritance tax, but, frankly, difficult choices had to be made yesterday because of choices that were not made by the Government in which the right hon. Gentleman served.