Post and postal services: Letter from the Minister for Public Finance to UK Government Ministers

To: Rt Hon Jonathan Reynolds MP, Secretary of State for Business, Innovation, Science and Trade, UK Government

Cc: Rt Hon Douglas Alexander MP, Secretary of State for Scotland

From: Hannah Mary Goodlad MSP, Minister for Public Finance

25 August 2026

Dear Jonathan 

I am writing to you as the new Scottish Government Public Finance Minister with portfolio responsibility for consumer advocacy and advice. My role includes liaison with UK Government, Ofcom and industry on the reserved issue of postal services, post offices and the Royal Mail. 

Scottish and UK government ministers have generally enjoyed a constructive working relationship on postal issues and I hope that we can continue in that vein. I would therefore like to draw your attention to a recent report by Consumer Scotland, our independent statutory body for consumers, on postal services for Scotland’s island communities. 

The report found that island residents continue to experience inconsistent levels of service, high delivery surcharges, and a lack of transparency around consumer protection policies. These issues can affect access to goods and services, contribute to increasing cost of living pressures, and create barriers for local businesses. Collectively, they have significant social and economic consequences that undermine the resilience of Scotland’s island communities.

Previous Consumer Scotland research found that 72% of consumers in the Highlands and Islands had been charged additional fees when ordering parcels online. Post and delivery services play a key role in Scotland’s rural and island areas. Many island communities in particular rely on post offices as vital hubs for essential services such as parcel delivery, bill payments and banking. As highlighted in Consumer Scotland’s research, some communities are refused deliveries altogether.  

The Scottish Government has long sought, within its limited devolved powers, to instigate change and ensure that every part of Scotland has access to fair and equitable postal and parcel delivery services. Among other initiatives, we published an action plan and convened roundtables with delivery companies. However, the fact remains that only the UK Government has the powers to mandate the much needed improvements.

As you may be aware, while serving as Minister for Small Business and Economic Transformation, Blair McDougall acknowledged that postal services had not met the expectations of customers in the islands "for quite some time". I hope you will therefore agree with me that urgent action is therefore required and doing nothing is not an option.

As Scotland’s island communities already experience significant cost of living pressures and access challenges, I would invite you to work with me to ensure postal services do meet their expectations, with associated charges that are fairer and more equitable. 

In our new National Islands Plan 2026, we committed to working with the UK Government and other relevant partners, to ensure that island communities and businesses can access equitable postal and delivery services. 

In light of this report, and with the interests of Scotland’s island communities in mind, I would ask that you convene Royal Mail, Post Office Ltd, Ofcom, parcel delivery companies, and consumer and community organisations to make urgent and necessary progress on postal services and parcel delivery regulation. I would be pleased to attend this meeting.

In advance of any roundtable, I think it important that we meet to discuss these challenges. While powers rest with UK Government, I want to underline the great importance that I place on advocating for consumers in Scotland. This means that I am very keen to work constructively with you to identify sustainable solutions that genuinely address the needs of our rural and island communities. 

I look forward to your response. 

Yours sincerely

Hannah Mary Goodlad MSP