Blair McDougall
MP for East Renfrewshire · Labour · United Kingdom
“Let me begin with the hon. Lady’s question about relations with China. We have been very clear that this decision was made in the national interest, not because of the national identity of those who previously owned the site.”
“I express regret and apologies, Mr Speaker, not only for the issue you just raised, but that we were not able to lay the regulations before Parliament before they came into force.”
“British Steel is now owned by the people. We will appoint non-executive directors and a board to take forward the transformation of the company so that it becomes productive, profitable and resilient.”
“The hon. Gentleman will be aware that the measures we took were necessary because of the ending of the steel safeguards. Without the measures we took, there was a real prospect of our becoming the global dumping ground for uncompetitively subsidised over-production.”
“Having got through this urgent question without making any commitments on behalf of my hon. Friend the Minister for Industry, I will give one now and say that I am sure he would agree to the meetings the hon. Gentleman suggests.”
“My hon. Friend is quite right to say that steelmaking communities have been impacted by previous Governments standing by rather than intervening —we have seen it in community after community over decades. As a Community trade union member, I am very aware of that.”
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“The USO underpins the network, guaranteeing that letters and parcels can be sent anywhere in the UK at a uniform price, six days a week. That principle ensures that businesses can reach customers nationwide and that families can stay connected.”
“It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for Bridgwater (Sir Ashley Fox) on securing this important debate on Royal Mail and the USO, an issue that matters deeply to households and to businesses across the country. Royal Mail is an iconic part of the UK’s infrastructure. The postie remains a familiar part of every city, town and village, providing a vital service to communities around the country. As other hon. Members have done, I pay tribute to the dedication of posties. I know, from spending time out on delivery with posties from the Barrhead sorting office in my constituency, the care that they have for their customers, and particularly their vulnerable customers.”
“My hon. Friend makes an essential point about the importance of the postal service in rural areas. The hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) made that point as well. I know from my relatives in highland areas how essential that connection is. My hon. Friend raises the issue of NHS appointment letters—that point was also raised by my right hon. Friend the Member for Oxford East (Anneliese Dodds) and the hon. Member for Bridgwater. The trials of barcodes on those letters have been very successful, and I am happy to continue discussions with the Health Secretary to make sure that those barcodes are rolled out as widely as possible.”
“I certainly will. As I mentioned a moment ago, the more dispersed geography of Scotland means that the postal service is often even more of a lifeline in our part of the world. I will certainly follow up that point with Scottish Ministers, and with colleagues in the Department of Health and Social Care. On the future of the universal postal service, I reassure the hon. Member for Bridgwater that we remain committed to a comprehensive USO that is financially sustainable and efficient, and that meets user needs within the open and competitive market. That is why the six-days-a-week, one-price-goes-anywhere universal service remains at the heart of the regulatory regime that is overseen by Ofcom, but of course the universal postal service faces challenges, as many Members have said.”
“Members will see Royal Mail’s service quality improve in the months and years ahead, but rest assured, I will continue to work with Royal Mail and Ofcom to make sure that that is the case. I emphasise that whatever criticisms we might have of Royal Mail, and whatever concerns we might have about the quality of service, we, across the House, are so grateful for the quality of service and the commitment of individual posties, who are an absolute lifeline to communities up and down the country. Question put and agreed to.”
“I am encouraged to see that Royal Mail is recruiting 20,000 temporary workers across the country to help deliver the Christmas items that we all expect during that peak period. As I have set out, the Government remain committed to ensuring the provision of a financially sustainable and efficient universal postal service, one that is accessible and affordable for customers, and that works for workers and businesses. I fully recognise that delays in postal deliveries can have serious consequences for those, including small businesses, who rely on the post for important information. Now that Ofcom has made changes to the USO specification to ensure a modernised service, we need Royal Mail to work with its workforce and unions to deliver the service that we expect. I hope that hon.”
“The Government have discussed that with the chief executive of Royal Mail, and I will do so again on behalf of the hon. Members who have raised issues today. I will return briefly to the subject of the constituency of the hon. Member for Bridgwater. I know that there have been service issues because of resourcing difficulties in the Bridgwater, Burnham-on-Sea and Taunton delivery offices. I understand that Royal Mail is now actively recruiting staff to deal with that. Again, I will discuss that with the chief executive of Royal Mail next week. Royal Mail has publicly committed to delivering improvements to its quality of service, and is taking action to recruit additional frontline staff, improving delivery office efficiency and simplifying the network to make it more reliable and resilient.”
“Ofcom has told Royal Mail that it must urgently publish a credible plan that delivers significant and continuous improvement. The changes to the USO that I referenced earlier include changes to Royal Mail’s quality of service targets, as the hon. Member for Bridgwater mentioned. They are intended to enable the business to more predictably deliver mail without delays, but I share his view that flexibility must ensure reliability, rather than lowering ambitions. Ofcom has committed to closely monitoring Royal Mail’s performance, and to ensuring that it meets the business regularly to have those conversations. It is evident from the contributions of hon. Members across the Chamber that Royal Mail’s quality of service has not been good enough.”
“Reform of the USO is an ongoing process, which is being undertaken by Ofcom, the independent regulator, so I will not directly insert myself into that. However, I will certainly make sure that the voices of hon. Members are heard, widely and clearly. Many Members raised issues relating to the quality of service. Experiencing delays is so frustrating, as many Members said. That is why, when EP took over Royal Mail, we secured the commitment through our golden share that before its new owners take value out of Royal Mail, quality of service must improve. Ofcom has powers to investigate and take enforcement action when failures in quality of service are identified, as it did recently when it fined Royal Mail £21 million for contravening its service conditions in 2024-25.”
“I can certainly do that. Through Ofcom, Royal Mail has obligations in terms of the accessibility of post boxes, and I will raise my hon. Friend’s point with the chief executive of Royal Mail when I meet with him next week. The challenges faced by Royal Mail are shared in most European countries, which are taking steps to reform their USOs. On 10 July, Ofcom announced reforms to put the USO on a more sustainable footing, and to push Royal Mail to improve reliability. However, changing those obligations alone will not be enough to guarantee a better service, so today, Ofcom has launched a call for input as part of its ongoing review of affordability, which will inform its consultation early next year.”
“Member for South West Devon (Rebecca Smith), both quoted Napoleon—I do not know if that was a signal that they are not going to cross the Floor to Reform. I will be slightly more patriotic and quote Nelson: we cannot “turn a blind eye” to the cost of the tax measures that the Conservatives set out. Fiscal credibility and sustainability are not abstract concepts. Because we got the public finances under control, small businesses across this country have lower borrowing costs, and because of those interest rates, people across the country have more money in their pockets. We need a real plan, not a fantasy, which is why we will introduce permanently lower business rates for retail and hospitality in the Budget.”
“So much pride has been expressed, and I hope that everyone in the Chamber will repeat that pride in their local high street in a few days’ time on Small Business Saturday, because it helps to drive footfall and to support those local people. We heard lots of talk from Members across the House. The hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for East Thanet (Ms Billington) raised the issue of business rates and business rates reform. The Government are to remove barriers to investment, and to help businesses to succeed and grow. Reforming business rates was a key manifesto pledge, and it is one that we are going to fulfil. The right hon. Member for Tonbridge (Tom Tugendhat), for whom I have some affection, and the hon.”
“It has been fantastic to listen to so many Members talking with great pride about high streets and businesses in their communities. The hon. Member for Farnham and Bordon (Gregory Stafford) invited us to Downing Street; I hope that is the only time that a right winger invites me to Downing Street for some years to come. We had a cultural trip to Weymouth and heard about the exciting plans there. I may also have a pint at the Swan in Windsor next time I go to Legoland with my children. As someone who is no stranger to the sweet trolley, I look forward to the Cosy Cake Shop and Death by Fudge in Doncaster and also to another pint at the Fox & Goose and the T-Bar; I do not remember terribly much about the last time I was in there, because I was on a stag do.”
“It has been a pleasure to listen and respond to this passionate debate. Before we get into the things on which we may disagree, I should say that it has been really interesting to hear how many times people have used metaphors like “heart and soul” and “backbone” when talking about their local high streets and local businesses. This issue is personal to us; it is about how we feel about the places we live in. As a former retail worker, I remember the customers who would come in and maybe pay more than they would at the big supermarket because they got that personal touch. I remember the elderly customers who would come in, and I knew that I was perhaps the only other human being that they had had a conversation with that day. This is about entrepreneurship and business, but, as someone said, it is also about the soul of our communities.”
“We made it clear a few days ago that we plan to reduce the administrative cost of the regulatory burden by nearly £6 billion, and that is what we will do. Conservative Members have spoken about the Employment Rights Bill and their intention to repeal it, but they are forgetting that that Bill will set up a single regulator for the labour market, which will actually reduce red tape for businesses across the country.”
“In a moment, I will come to our plans to reduce the mountain of red tape that the right hon. Member’s Government left us with, and to reduce the cost of that red tape. Conservative Member after Conservative Member spoke about the Employment Rights Bill. I should say at the outset that we want the rights in that Bill to be fit for the 21st century—the last time that we properly reviewed our employment law and the relationship between employer and employee was in the last century. However, I am astonished that right hon. and hon. Members on the Conservative Benches do not seem to see the connection between how much money people have in their pockets and the ability of their local high streets to thrive. Giving people more secure work and higher wages means that the money in their pockets ends up in the tills of local businesses.”
“Friends the Chancellor and the Business Secretary made a great start on that, creating an additional £230 million of savings for businesses by changing the requirements on directors’ reports for businesses of any size.”
“I will return the compliment to my right hon. Friend before I disagree with him. This is the problem; there is a certain cheek to the Conservative party leaving us a burning building and then criticising us for reaching for the fire hose. We had to stabilise the public finances—and again, that is not abstract. The Conservatives have to learn the lesson—here comes the groan—from the Liz Truss Budget. They have to learn that lesson, because this is not abstract for businesses. Returning to the issue of stripping out the costs of red tape, in March the Government pledged in our regulation action plan to cut the cost of regulatory burdens by 25%. At the regional investment summit last month, my right hon.”
“Across this Government there is an urgency—it is there today, and I wish it had been there before—to support small businesses and help to get our high streets back on their feet. Question put, That the original words stand part of the Question.”
“The cost of the Employment Rights Bill is around 0.4% of wage costs across the country, and the additional help that the Bill provides will have a huge impact on small businesses and high streets. Many Members raised the issue of crime, but let me reassure the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who spoke of the character of local areas, and suggested that there should be greater local powers to control the spread of gambling shops. We intend to deal with that when time allows. For 10 years we waited for a small business strategy, and in July we introduced one. We are taking action on late payments for businesses, on access to finance and on cutting red tape.”
“The whole of Government are focused on delivering the industrial strategy, and significant progress has already been made. This month, we published our new quarterly update, which reports on the key economic indicators for growth-driving sectors, delivery milestones and major investments. With over £250 billion of investment committed and over 45,000 jobs supported since July, we are delivering on that vision.”
“My hon. Friend has been a constant advocate for the energy potential of Pembrokeshire. That is why the industrial strategy supported south-west Wales’s clean energy potential through targeted investment in infrastructure and workforce development. The strategy will build on that using the potential of the port of Milford Haven, floating offshore wind in the Celtic sea and carbon capture technologies. The £800,000 skills pilot that he refers to underpins that clean energy industries sector plan. The National Wealth Fund will also benefit Wales, as it will invest in the sectors he mentions that are prevalent in that area.”
“I know from holidaying in my hon. Friend’s constituency that it is a place of incredible beauty, but I know from his constant advocacy that it is also a place of huge industrial potential. Cornwall will benefit from access to the £200 million investment fund, which provides debt and equity finance of up to £5 million for businesses in the south-west. That has already delivered £51.8 million of direct investment, leveraging an additional £48.1 million. I know he has big plans for industry in Cornwall, and we will work with him, especially on access to finance, to ensure that we can unlock that potential. We will of course work with our colleagues in MHCLG.”
“I share my hon. Friend’s frustration at the lack of an industrial strategy from the SNP Government in Edinburgh. It has meant that workers at Alexander Dennis in his constituency are on furlough rather than doing what they do best: making world-class buses for public transport. For our part, we are supporting combined mayoral authorities to co-ordinate the procurement of buses through a Crown Commercial Service commercial agreement, and we are publishing a 10-year pipeline of future bus orders to provide the much-needed certainty that the sector requires. That includes providing advice on using social value criteria that suppliers such as Alexander Dennis are well placed to meet when procuring new buses, such as creating and retaining jobs in a way that respects our legal obligations. I pay tribute to my hon.”
“I can absolutely give the hon. Member that reassurance. I have already met with my opposite number in the Northern Ireland Executive. The hon. Member mentions defence industries in particular, and it feels like every single month there is a significant defence order as part of the industrial strategy. It shows that these are not just words on paper, but that we are delivering within the real economy.”
“As I said to the hon. Member for South Antrim (Robin Swann) a moment ago, we have already met with the Northern Ireland Executive on these issues. Skills are an essential part of the industrial strategy because we see, again and again, industries around the country that are desperate to grow, and have the orders, but are unable to create the high-paying jobs that we need. That is an absolute priority for us as we implement the industrial strategy.”
“We are fast approaching the time of year when I have to tell my children that they will have to wait until Christmas to find out what their presents are. The hon. Gentleman knows that he has to wait until the Budget to find out what is in the Budget. He mentioned planning. We have made huge changes to planning rules, which have resulted in a saving of about £272 million in red-tape costs for business, so we are ensuring that that sector, in particular, has the environment it needs to contribute to growth.”
“To stand up and raise uncertainty, and then complain about it, is quite something. The shadow Minister said that we are slowing growth; we were the fastest-growing economy in the G7 in the first half of 2025. We are now the fourth-largest exporter in the world, and we have had five interest-rate cuts in a row—”
“I thank the hon. Lady for her kind words on my new appointment. I will not get ahead of announcements on that, but given the importance of skills to the industrial strategy, we are not waiting for those announcements. We have had TechFirst, a £187 million investment in secondary school pupils, undergraduates, PhD students, entrepreneurs and businesses, to help them get ahead on that. We have the engineering package of over £100 million, and the defence package of £182 million. We are making those investments now to ensure that the pipeline is there for those industries, which are the priority within the industrial strategy.”
“The Government have launched our small business plan, which my predecessor, my hon. Friend the Member for Harrow West (Gareth Thomas), did so much great work on. “Backing your Business” outlines how we will make thriving small and medium-sized businesses a reality across the UK. We are unlocking billions of pounds in finance to support businesses, including through the most significant reforms to tackle late payments in 25 years. We will support businesses further by revitalising high streets and delivering growth-boosting support for digital adoption through a new online business growth service.”
“As ever, my hon. Friend is a great advocate for all things Doncaster. The beauty sector is a vital driver of innovation, sustainability and wellbeing across the economy, but also locally, through businesses like the Beauty Lounge. That is why we are backing small businesses through the small business plan, as I just set out, but we are also reforming business rates and have increased the employment allowance, enabling employers to hire up to four full-time workers without paying national insurance contributions. I am always told on social media that I am in need of a glow-up—perhaps the next time I am in Doncaster, the Beauty Lounge can help me out.”
“I know my hon. Friend is a great believer in Leigh and Atherton’s untapped potential, and so are we. We have launched the small business strategy, with action on late payments, action to unlock access to finance, and better, simpler support through the business growth hub. In addition to that, Leigh will receive £20 million through the pride in place programme. I know my hon. Friend fought hard for that on her community’s behalf.”
“I gently say to the hon. Member that he did not do that in 14 years in government. Indeed, the Conservatives were set to remove the reliefs on small businesses. Rather than repeating the mistakes of the Liz Truss Budget with unfunded tax commitments, we are giving real support to businesses now, including by increasing the employment allowance so that more and more of the small businesses that he describes do not pay national insurance contributions at all.”
“I thank the right hon. Gentleman for his constructive question; I am very happy to pursue that within Government. The wider point is that both the small business strategy and the industrial strategy are important because they are cross-Government strategies, as lots of sectors and individual businesses are facing challenges that are not just the responsibility of one Minister. I will certainly follow up on that.”
“I thank the shadow Minister for her welcome. She is absolutely right about the anchoring effect of post offices on high streets all over the country. We know not just that, as we mentioned in the Green Paper, if people go to their post office they are likely to spend money in local shops, but that post offices are essential—as I found out during a visit to one the day before yesterday—in giving small businesses somewhere to take their takings. The Green Paper set out the options for maintenance of the post office network, and it is certainly our intention to maintain it.”
“My hon. Friend is a dynamic advocate for a dynamic part of the country in the Thames valley. The industrial strategy and its sector plans highlight the strengths in his area, especially in tech and life sciences. Alongside the national package to grow the sector, specific interventions in the south-east include an AI growth zone in Culham, support for the Solent freeport, expanding the British Business Bank’s nations and regions investment fund and major projects backing the Oxford to Cambridge growth corridor. We will keep working with my hon. Friend to unlock the potential across the south-east.”
“As I said to the hon. Member for West Worcestershire (Dame Harriett Baldwin), we are committed to ensuring not just that we work to maintain the post office network, but that we deal with some of those long-standing issues about the viability of the business going forward—issues that the Conservatives had 14 years to fix and did not.”
“The hon. Member raises an important point, particularly for small businesses, which rely on those schemes. I pay tribute to the Royal Mail for the speed at which it reacted to those de minimis changes to ensure that businesses were able to continue. We keep working with Royal Mail as well to ensure that that is possible.”
“Businesses led by entrepreneurs from ethnic minority backgrounds make a huge contribution to all our constituencies. Indeed, I met two such remarkable business people in Acton a couple of days ago. My hon. Friend is right to mention that finance is a barrier for under-represented groups, including ethnic minorities. Dealing with that is a key part of the small business strategy, and it is why we have put billions more into the British Business Bank. She has led on these issues, and I am of course happy to meet her to discuss the future of the programme that she mentions.”
“The hon. Gentleman makes an important point. One of my constituents is in a similar case, and it is devastating. For a large business, fraud and economic crime is an inconvenience; for a small business, it can be existential. That is one of the reasons why, this week, we are communicating with small businesses to ensure that they up their cyber-security. I am happy to meet the hon. Gentleman on this issue.”
“The payment data headlines will include statements on payment practices, average time to pay, and the percentage and sum of payments made before 30 days, between 31 and 60 days, and after 60 days. They will also include the sum and proportion of payments that were not paid within the agreed payment period. This data will publicly illustrate a company’s approach to payment. It is only a small ask for large businesses, but will help with continuous improvement of payment times. The Government are committed to ensuring that this legislation continues to work and this instrument will be subject to a review within five years. I hope hon. Members on the Committee will see the benefits that these draft regulations provide and agree with the introduction of this affirmative statutory instrument.”
“Businesses that are already adhering to current payment regulations will not be significantly affected, as it is data large firms are already required to collect and publish through Gov.uk. The Government want to shift the focus from small businesses wasting hours of their time chasing late payments, and instead put the onus on the boards and stakeholders of large businesses to ensure they are paying their suppliers fairly. I will now outline the key elements of this statutory instrument. These regulations amend schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and introduce the requirement for large businesses to report information about their payment practices within their directors’ reports.”
“Our consultation closes on 23 October—Thursday this week—and we intend to take forward primary legislation as soon as parliamentary time allows. Today we are making a down payment on those wider legislative reforms. We are going to build upon the existing payment transparency regulations for large companies by introducing payment data headlines into directors’ reports. Large companies are already under a duty to report biannually on their payment practices and performance. These draft regulations will require large companies to disclose payment reporting data within directors’ reports required under the Companies Act 2006, further increasing the transparency of payment performance to their boards, stakeholders and auditors.”
“In December 2024 we launched a new Fair Payment Code and introduced secondary legislation requiring construction businesses to publish reports on their retention payment practices. In July we launched a public consultation considering additional legislative measures to hold businesses to account on payment performance. The consultation considers measures that go even further than today’s statutory instrument, and will be the most significant legislation to tackle late payments in over 25 years. It will give the UK the strongest legal framework on late payments in the G7. These measures will include removing flexibility around maximum payment times, which disproportionately impact small businesses, and introducing mandatory interest on late business- to-business payments.”
“I beg to move, That the Committee has considered the draft Companies (Directors’ Report) (Payment Reporting) Regulations 2025. It is a pleasure to see you in the Chair, Ms Vaz. It is also a pleasure, as the new Minister for small business, that this is the first statutory instrument that I am speaking on, as someone who ran a small business and suffered from late payments at times. Small businesses are the backbone of our economy, employing millions of people and enriching our lives, yet we know that the scourge of late payments has been holding them back. Late payments are estimated to cost the economy almost £11 billion per year and to lead to 14,000 businesses closures annually. That is an average of 38 businesses every single day. This cannot go on. That is why this Government has already taken action to improve payment practices.”
“On the question about the powers of the Small Business Commissioner, part of the consultation we are currently running is on proposals to give the commissioner more powers to investigate and resolve late payment cases. With these regulations as part of the wider package of measures, we will be delivering the biggest reform to late payment regulations in 25 years; as I say, this measure is very much a down payment on what is coming. I urge hon. Members present to look at the proposals and to take part in the late payments consultation over the next couple of days. These regulations are just the first step, but they are potentially the start of making a huge difference to what is a huge problem for small businesses. I commend the regulations to the Committee. Question put and agreed to.”
“I am grateful for the support across the House on these regulations. It is clear from hon. Members’ constructive comments that we all agree that this is a serious problem that we need to tackle. To respond to some of the specific questions, the hon. Member for Grantham and Bourne made a powerful case with his statistics about the impact of late payments on the economy. In terms of the burden on business, we think it will be a very small one, in return for potentially a bigger prize—I think it is 133 million hours spent across the economy chasing late payments. To his point on consistency, there is some overlap between the data that people already have to report and the data that we are suggesting be put into the annual reports through these regulations.”
“The CMA recently examined the use of dynamic pricing across different sectors of the economy, and its report sets out all sorts of conditions that may make dynamic pricing problematic, and the information that businesses should provide to consumers when it is in operation.”
“Before moving on to Oasis, I should declare an interest, which is that in the late-1990s fight between Oasis and Blur, I was very much Team Blur, so that may inform my attitude towards these matters. The CMA is seeking to make changes to the way that Ticketmaster labels tickets and provides pricing information to fans, in response to concerns about last year’s Oasis sale. Obviously, that investigation has yet to conclude. We will continue to work with the watchdog to ensure that pricing practices are transparent and proportionate, and that consumers have the right safeguards.”
“Additionally, consumers must be able to evaluate that information in the absence of undue pressure. Aggressive tactics and pressure selling are illegal. When price fluidity or instability puts customers in an unfair position—for example, as we mentioned, in ticketing, when consumers feel that they have to immediately accept a high price for fear of it going even higher—that is unacceptable. The CMA is acting when businesses fail to comply with those laws. For example, last year, it took enforcement action against Wowcher, which agreed to change its selling practices after concerns were raised about its use of a countdown timer to pressurise customers, among other marketing claims.”