Post Office Green Paper

Debate between David Mundell and Blair McDougall

Wednesday 25th February 2026 Commons Chamber

[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.

Postal Services: Rural Areas

Debate between David Mundell and Blair McDougall

Wednesday 4th February 2026 Westminster Hall

[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.