The Government will not achieve its ambition of delivering the highest growth in the G7 unless it undertakes sweeping reforms to Britain’s investment institutions, the Business and Trade Committee has warned.
In a major new report, the Committee concludes that Britain suffers from a deep investment paradox.
The UK is home to one of the world’s leading financial centres, pension funds managing £3 trillion in assets, at least £264 billion of undeployed investment capital and world-class universities that have created more than 1,300 spin-out companies in the last twelve years – But an estimated 380,000 businesses that want finance cannot get it.
Decades of individually defensible policy decisions have collectively weakened the institutions that should connect British savings with British enterprise. And so Britain exports capital, sells promising scale-ups too early, and struggles to finance the growth companies that could power higher living standards.
The report concludes that Britain must mobilise an additional £180–200 billion of investment every year to match the investment performance of the strongest economies in the G7.
Liam Byrne MP, Chair of the Business and Trade Committee, said: “Britain is not short of money. We are short of institutions capable of putting that money to work.
“We have £3 trillion in pension assets, £264 billion of undeployed investment capital, £610 billion sitting in cash savings accounts and one of the world’s great financial centres. Yet 380,000 businesses that want finance cannot get it.
“For too long we have exported our savings and sold our scale-ups and watched other countries capture the rewards.
“If Britain wants the highest growth rate in the G7, we need the best system in the G7 for turning savings into investment and ideas into world-leading companies.”
Defence plan delays undermine UK credibility with allies and industry
The Westminster government’s delay in publishing the Defence Investment Plan (DIP) has undermined the UK government’s credibility with its allies, and its ability to provide a stronger deterrent to its adversaries.
In a report into the Ministry of Defence’s 2024-25 accounts, the Public Accounts Committee (PAC) warns that the long delay to the DIP risks squandering the opportunities provided by advances in technology, hindering the government’s attempts to modernise the Armed Forces.
It has been three years since the Ministry of Defence (MoD) published its Equipment Plan for 2023-2033, in which the PAC then found no credible plan to deliver the military capabilities government wanted.
Since then, the PAC expressed extreme disappointment last year at the continued lack of a plan setting out how the government would invest the funding increases set out by the high-level ambitions in the Strategic Defence Review.
The delay to the DIP, the PAC’s report finds, has been due to the lack of a decision from the MoD as to which capabilities, infrastructure and people it requires to transform the Armed Forces to be warfighting-ready within the available budget. It is also due to its failure to secure the cross-government agreement the DIP needs.
The PAC’s report lays out the impacts of the delay to the DIP, which include:
An inability to provide a stronger deterrent to the UK’s adversaries
A need now for the UK to recover credibility with its allies
An inability to equip the UK’s Armed Forces for the modern battlefield
Undermined credibility for the MoD with the defence sector
Additional cost pressures on the defence budget
An adverse impact on industry, particularly for smaller companies.
Time is money in procurement, and the PAC notes suppliers are now increasing their prices to take account of the international situation’s continued deterioration. The MoD must demonstrate the flexible use of the DIP to take account of the changing international context in decision-making on expenditure and capabilities.
With the delay also risking having weakened the UK’s defence industrial base, the PAC is seeking action from the MoD to mitigate impacts of this delay on suppliers.
The PAC’s report further finds that the MoD is placing unrealistic expectations on how soldiers can safely operate the Ajax armoured vehicle. Ajax has unresolved noise and vibration issues, with 33 soldiers reporting symptoms after operating them.
Five soldiers were still under medical review when the MoD appeared before the PAC in March 2026, at which time the MoD claimed Ajax is safe when operated and maintained correctly within its design parameters.
The MoD now expects soldiers to do maintenance checks every time they stop the Ajax vehicle. This seems unreasonable, given soldiers may need to use vehicles for long periods in combat, and the PAC is calling on the MoD to explain how the current required operating parameters and restrictions for Ajax are realistic and appropriate.
With an Ajax 2 package of upgrades now in development at an unknown cost, the PAC awaits to see, more in hope than expectation, whether these endeavours will succeed. The MoD must now set out precisely how much it will pay for Ajax, and why it still expects that it can be made fit for purpose.
Turning to the MoD’s ever-increasing nuclear expenditure, which made up 18% (£10.9bn) of the defence budget in 2024-25 (expected to rise to up to 25% in coming years), the PAC understands that a proper mechanism will now be set up to address a state of affairs under which public information about nuclear programmes is too sensitive for Parliament to properly scrutinise them.
This enhanced Parliamentary scrutiny, long called for by the PAC, must not be delayed by current political uncertainty, and the MoD must now set out how and when it will routinely provide Parliament with more detailed cost and performance information for the nuclear enterprise.
The MoD’s accounts further show a completely unacceptable failure to maintain accounting records to support £6bn+ of assets. The accounts do not provide a true and fair representation of the MoD’s financial position, due to a misclassification of historic expenditure by the Atomic Weapons Establishment as spending that had resulted in it developing infrastructure.
The report recommends MoD set out how it will prevent this happening again.
The PAC has long scrutinised the issue of recruitment and retention in the Armed Forces, and the latest public statistics for the year to October 2025 point to a corner being turned, with the number of people now joining up exceeding those leaving.
The MoD does not, however, know whether these improvements are as a result of its own efforts or if it can sustain them, and the PAC’s report makes recommendations targeted at helping it do so.
Sir Geoffrey Clifton-Brown MP, Chair of the Public Accounts Committee, said: “Much commentary has been expended recently on the months-long delay to the DIP. However, from this Committee’s point of view, the nation has now in fact gone years without a credible plan for UK military capability.
“Those responsible may argue there are good reasons for the DIP’s continuing absence, but our report makes clear that excuses to the effect of ‘taking the time to get the details right’ simply do not cut it.
“Whatever the content of the DIP when it eventually does appear, the damage from its absence has been done – to the nation’s credibility, to its safety, to its Armed Forces, and to certainty within its entire defence industrial base.
“Any government minister attempting to explain away this delay to the DIP should instead ask themselves what message the bureaucratic drift of the past months has given to the public, as well as the UK’s allies and its adversaries, and simply apologise.
“Whatever else the government hopes to achieve with the DIP, it has certainly gained the unwelcome honour of being the most anticipated document in my entire political career. As we still await its publication at time of writing, I know I speak for the defence interests of the whole UK when I say – this had better be good.
“Our Committee sadly must also add a chapter to the troubled history of the Ajax programme with this report. Our thoughts are with all those soldiers who reported symptoms from noise and vibration after operating these vehicles, and we were frankly astounded to hear officials explain that proper use of Ajax requires maintenance checks every time it is stopped.
“This is frankly an insult to intelligence, and much good may this advice do our fighting men and women if called upon to operate Ajax in combat. The MoD must now explain how it will make Ajax fit for purpose, and how much this will cost.
“Finally, given the ratchet effect of ever-increasing while opaque nuclear spending, about which both my and predecessor Committees have long warned, and in the context of a completely unacceptable £6bn accounting muddle around the Atomic Weapons Establishment, a new sensitive scrutiny mechanism is to be welcomed.
“Political uncertainty must not derail these arrangements, in order that the public may gain greater confidence that their money is being spent wisely.”
The UK Government has published a list of 125 everyday essentials – including fruit, oils and core pantry staples – targeted for tariff reductions, alongside uprating mileage rates to support working people with the cost of living
Government launches consultation on suspending tariffs on OVER 100 everyday essentials with the full list now available.
This Government is the first in 15 years to uprate mileage rates for 3 million people who use their own vehicle for work, saving over £120 a year for a worker doing 6,000 business miles.
The support is an additional saving for motorists following the Chancellor’s third extension to the fuel duty freeze which has put another £120 back into their pocket since last year.
Working people are set to benefit from further cost of living support, as the Government publishes a list of over 100 everyday essentials set to see targeted cuts to tariffs alongside uprating mileage rates for the first time in 15 years.
The consultation is seeking views from businesses and other stakeholders on the potential impacts of a second package. It covers a wide range of everyday essentials, from fresh fruit and vegetables, oil and baked goods, to chocolate, sauces, and soft drinks.
The list of 125 items include garlic, avocados, mangoes, nectarines, vegetable oil, olive oil and baked beans. This builds on the tariff suspension announced in April.
In parallel, we are also seeking views on whether suspension of tariffs on certain fertilisers could help farmers cope with the impact of rising fertiliser prices as a result of the conflict in the Middle East.
Chancellor of the Exchequer, Rachel Reeves, said: “The war in Iran isn’t our war, but one we will need to respond to, and my priority is keeping prices down for households and businesses.
“That’s why we’re freezing fuel duty, increasing the mileage rate for the first time in 15 years and slashed VAT temporarily this Summer to help reduce the cost of days out.”
This comes as carers, plumbers, builders and millions of other workers across the country who use their own vehicle on the job will have cheaper journeys after the Chancellor uprated mileage rates last week.
In the largest ever uprating of the rates a 10p per mile increase in tax‑free mileage rates for this tax year, backdated to April 2026, has been introduced to ease the cost of living for hardworking Britons.
Increasing the tax free per mile rates from 45p for the first 10,000 miles to 55p per mile will save around £120 for a worker doing 6,000 business miles. Up to two million employees and one million self-employed people will benefit.
This is in addition to savings drivers will make from the Chancellor’s further extension to the fuel duty freeze until the end of the year. That’s the third time Rachel Reeves has frozen fuel duty to support motorists, saving them £120 since last year.
Recognising how farmers and hauliers have been particularly exposed to high fuel prices, and their importance to UK supply chains, more relief has been announced.
For farmers and others who use red diesel and rebated biodiesel, the rate for those fuels has been cut by over a third – the lowest in over two decades. For hauliers, a road tax holiday has been put in place for a year from 1 July.
Transport Secretary Heidi Alexander said: “We are a government firmly on the side of drivers, and that means acting when hardworking people are being left out of pocket.
“The people who use their own vehicle for work are the backbone of our country – the carers, the tradespeople and the public sector workers who keep services running. For too long, they have been expected to shoulder rising costs with support that simply has not kept up.
“We’re doing all we can to ease everyday pressures on working people – that means real money back in their pockets and delivering for the people who keep Britain moving.”
Andrea Egan, General Secretary, Unison said:“This simple measure will provide immediate help for countless frontline workers in public services. Particularly at a time when living costs are going through the roof once again.
“People who need their own cars for work have been left thousands of pounds out of pocket for far too many years.
“UNISON has campaigned hard for this long overdue change. It’s good to know the chancellor has listened to the concerns of staff penalised by frozen rates.
“There’s still more to do to ensure no one is losing out and the union will continue to campaign for more over the coming months.”
This follows a much wider package of support rolled out by the Chancellor last week branded ‘Great British Summer Savings’.
It includes free bus travel for 5–15-year-olds in England, VAT slashed on children’s meals in restaurants, and VAT cut for all admissions to theatres, theme parks and other attractions.
This will help families enjoy the weekend treats, days out and staycations that make life enjoyable during the cost-of-living squeeze caused by the war in the Middle East while supporting the businesses that depend on summer footfall.
Cutting £150 on average of costs from household energy bills, freezing prescription charges and rail fares, and increasing the national minimum and living wages by hundreds of pounds are some of the actions taken at the Budget that are continuing to support families each month.
The UK’s Competition and Markets Authority (CMA) should launch a full market investigation into the live music industry before the end of 2026, says the Commons Business and Trade Committee in new report.
The Committee concludes that for Live Nation, and possibly wider in the live music market, there are concerns against all three of the CMA factors for determining market dominance.
After a public outcry in 2024 over the way Oasis reunion concert tickets had been marketed, a CMA investigation found that Ticketmaster had misled consumers and used unclear ticketing practices.
Ticketmaster initially refused to subject themselves to public scrutiny by the Committee but ultimately appeared in Parliament in February 2025, returning with their parent company Live Nation in June 2025.
The Committee was left with serious concerns about the state of competition in the live music industry in the UK.
Live Nation Executive President Phil Bowdery explained away the company’s large market share in arenas and stadia, saying “we are very good at what we do. Therefore, there is interest from the major artists to be with Live Nation.” But evidence submitted to this inquiry suggests an alternative explanation for Live Nation’s dominant position.
A call for written evidence elicited 45 submissions, with a significant proportion requesting to submit anonymously or confidentially for fear of reprisal: in itself this triggered alarm about whether Live Nation has a dominant and controlling market position, and the climate of fear this may have created in the industry.Concerns
Concerns raised in evidence include:
The scale and integrated nature of Live Nation’s business model make it difficult for artists and managers to operate independently of its ecosystem.
This can begin right at the point of artist entry into the industry from grassroots level, with concentration at arena, stadium and major festival level reduce opportunities for independent promoters and venues to access and scale artists through the wider touring circuit.
The same problems are reported by smaller and independent festivals who find access to talent increasingly challenging.
The lack of uptake of an industry led levy on arena and stadium tickets to support the grassroots sector – as suggested in 2024 by the Culture, Media and Sport Committee and endorsed by Government – has been widely attributed to Live Nation not implementing the levy.
Live Nation uses long-term agreements with restrictive exclusivity terms that make access to its venues contingent on participation in its festivals (or vice versa), incentivising artists to consolidate touring arrangements with the company and reducing opportunities for competing promoters and events.
Independent promoters alleged that venues owned or controlled by Live Nation favour in-house promotion businesses and integrated ticketing arrangements impeding competition.
In primary ticketing, Live Nation directly controlled 58% of the 23.1 million tickets on sale in 2025, increasing to 66% if sales controlled by its affiliate companies are included.
In secondary ticketing, the Committee received evidence indicating the restriction of resale activity to Ticketmaster’s own resale platform.
This control of ticketing infrastructure – some evidence alleged that even where third-party ticket agents participate in sales, they are required to integrate their systems with Ticketmaster’s – allows the company to retain customer data even from competitors, which can then be leveraged across promotion, marketing and event operations.
Rt Hon Liam Byrne MP, Chair of the Committee, said: “Britain’s live music scene is one of our great national success stories, from grassroots venues nurturing new talent to world-class arena and stadium tours that attract global audiences.
“But the evidence we received during this inquiry points to deep concerns about whether competition in the industry is now working fairly for fans, artists, venues and independent promoters.
“What particularly alarmed the Committee was not just the scale of Live Nation’s market position across promotion, venues and ticketing, but the climate of fear we encountered during this inquiry.
“A striking number of submissions requested anonymity because people were worried about the consequences of speaking openly. That alone raises profound questions about the health of competition in the market.
“The CMA should now launch a full market investigation, before the end of this year, so there can be proper scrutiny of whether consumers, artists and independent businesses are getting a fair deal.”
Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the UK Government to reform the system for workers who fall ill
Radical overhaul of broken fit note system to be piloted so it works for patients, employers, and healthcare professionals.
Trials to be delivered through selected NHS WorkWell sites and major employers.
Comes as new report shows just 29% of primary care staff see issuing fit notes as a good use of GP time.
Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the Government today to reform the system for workers who fall ill.
The current system sees some 11 million fit notes issued every year, with more than nine in ten declaring the person ‘not fit for work’.
Four pilots, in different areas in England, will look at the best way to end this tick-box exercise which does not offer any support or guidance and replace it with personalised ‘stay in work’ and ‘return to work’ plans for workers who fall ill.
The pilots will cover up to 100,000 appointments and last up to a year, with continuous testing, in order to narrow down the most effective approach to tackling the inherited steep increase in number of fit notes issued.
Patients will be offered either an initial fit note from a GP and then referred to community health workers – or go through the whole process without an initial fit note from a GP, and will instead be supported by a separate service staffed by clinical and non-clinical practitioners.
They will provide a range of work and health support, including three-way conversations between patients, employers, and trained professionals – covering reasonable adjustments and keeping people connected to their workplace from the first day of absence, helping more people to stay in work with support.
It is the first step in the Government’s ambition for radical fit note reform – with pilot findings due to be shaped by patients, healthcare staff, and employers – before the Government brings forward legislation to further reform the ‘broken system’.
Work and Pensions Secretary Pat McFadden, said: “Fit notes are too often a dead end – a piece of paper that tells people they can’t work but does nothing to help them get better.
“We’re changing that. By bringing employers, the NHS, and patients together we can help people recover faster, stay connected to their jobs, and get the economy firing on all cylinders.
“That’s what these pilots are about, and that’s what this Government is committed to – fixing what is broken.”
The launch comes as the Government publishes the Fit Note Call for Evidence which shows just three in 10 Healthcare Professionals in Primary Care say fit notes are a good use of GPs time, while six in 10 employers think the current process is ineffective at supporting their employees’ work and health needs.
Trials of a new approach was recommended by the former John Lewis chairman Sir Charlie Mayfield in his landmark Keep Britain Working Review into economic inactivity, which noted that the fit note system is “not working as intended” and had become a barrier to contact with employers.
Minister of State for Care Stephen Kinnock said: “Ever since I was appointed Minister of State for Care in July 2024, NHS staff have been telling me that the current fit note system isn’t working – not for patients, and not for the clinicians who sign them off.
“These pilots mark the beginning of the end for that broken system, giving people personalised support to get back into work and freeing up GPs from unnecessary admin so they can focus on what they do best: caring for their patients.
“This is what our 10 Year Health Plan is all about – earlier support, from the right people, in the right place.”
From July, the NHS will test new approaches through four existing WorkWell sites, backed by £3 million in the first year. The areas will test the following models:
Birmingham and Solihull – GPs issue the first fit note where needed, with all patients referred to a new support service led primarily by non-clinical staff, including social prescribers and work and health coaches
Coventry and Warwickshire – GPs issue the first fit note, with patients able to be referred to a support service made up of both clinical and non-clinical staff
Cornwall and the Isles of Scilly – GPs refer patients directly to a non-clinical support service, without issuing a fit note
Lancashire and South Cumbria – GPs refer patients to a support service made up of both clinical and non-clinical staff, without issuing a fit note.
BMA’s Practice Business policy lead for GPs committee England Dr Clare Bannon said: The BMA has contributed to the design of these pilots with DWP to overhaul the fit note system as we feel the current system is not working for GPs or patients.
“We welcome the opportunity to test how different models work and ensure the new process reduces unnecessary appointments for GPs, but most importantly provides support to patients.
“We will continue to input into the pilots to ensure they have appropriate occupational health support and do not inadvertently increase pressure on general practice or affect patient care. While we are supportive of this pilot, it must be underpinned by appropriate training, clinical oversight and clear governance.”
Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said: “GPs take our responsibility to appropriately issue fit notes seriously, but the current system can involve significant administrative work that takes time away from patient care.
“We are open to exploring evidence-based reforms that could help improve outcomes for patients. However, any reform of the fit note process must put the health and wellbeing of patients first, be fully resourced and avoid creating additional workload for general practice.
“As such we look forward to seeing a comprehensive evaluation of this pilot.”
The Government is also confirming local funding allocations for WorkWell – the proven health-and-employment service through which the NHS-based fit note pilots will be delivered – as the programme expands nationally to support up to 250,000 people with a disability or health condition to get into or stay in work.
WorkWell is a local, health-led service connecting NHS, council and community support to keep people in work and help them return quickly if they don’t.
It comes as part of the Government’s wider £3.5 billion employment support package which meets sick and disabled people where they are, and builds on recent changes including the right for people on benefits to try work without fear of immediate reassessment, and the redeployment of 1,000 Pathways to Work advisers who are supporting those left behind by the previous Government.
Those who need time off to recover will still get it, with the Government’s Statutory Sick Pay reforms meaning employees receive support from day one of sickness absence, putting an extra £400 million a year into people’s pockets.
Alongside the NHS pilots, Keep Britain Working Vanguard businesses – including EDF Energy – will work out how employers can play a practical role in preventing absence where possible, and supporting safe, swift returns when it does occur.
Jacob Lant, Chief Executive of National Voices, said: “The current tick-box system for fit notes isn’t working for anyone, particularly patients. It makes people who are unwell jump through unnecessary admin hoops, and yet the process rarely offers people the support they need to get well and manage their conditions long-term.
The Department for Work and Pensions is absolutely right to test out new ways of supporting those who are signed off, and it is vital that patients are fully involved in that testing process, able to feed back over what works and what doesn’t. This is the only way to reliably avoid unintended consequences and create a system that actually helps both those who can’t work and those who would be able to with the appropriate support.”
“Ultimately the goal has to be about focusing on improving people’s health and getting them well, this is the hallmark of a compassionate state. In the end, investing in this approach will also pay dividends in terms of more people feeling able to work and being able to enjoy all the positives that come as a result.”
Nottingham GP Dr Sanjoy Kumar said: “I am really pleased the government is looking seriously at new approaches to fit notes, a change which is urgently needed.
“As a GP for over 25 years, I know how much of our clinical time is taken up with issuing these, which for many patients is not the right approach.”
Dr Steve Taylor GP Co-Lead Doctors Association UK said: “The Doctors Association UK has been involved in discussions over the past few months with the Department of Work and Pensions around Fit Note reform.
“These discussions were broad and included many groups: GPs, employers, patients and occupational health. We agree that the current system of fit-notes isn’t working well for patients, GPs and employers. It often lacks the nuance to deal with specific work situations and reasons that people have for not being able to work their full or part of their role.
“We hope these pilots will give the opportunity to explore a different way for people to engage with the periods of ill health and ways to make work more accessible and achievable. This recognises that GPs aren’t always best equipped to understand the options for work and we hope that active engagement between patients, GPs, employers and this new service will provide a better experience for everyone.
“It is important that no one is forced to work who cannot, but it is also important that those who can, should be encouraged and given options to work. This could be a great improvement and we look forward to seeing the outcomes from these 4 pilots.”
Chief Policy & Campaigns Officer John Foster at Confederation of British Industry said: “The fit note system is broken and fails employers, workers, and the economy. Business welcomes these pilots. They are an important step towards building a better system.
“Employers have increased their investment in supporting employee health and wellbeing and hope that these pilots will direct efforts to interventions that have the greatest impact.
“An improved system also needs to restore employers’ confidence that absence from work is only recommended when it is justified.”
Professor Neil Greenberg, the Society of Occupational Medicine said: “The Society of Occupational Medicine (SOM) welcomes DWP’s proposed fit note pilots, particularly the workability plan. The current fit note system is not working. Too many people who could potentially be supported to stay and return to work are not.
“The fit note reform offers clear benefits for employees, employers, and the NHS. SOM anticipate the pilots will generate useful data to improve how fit notes will support employees, alleviate GP pressures and help bridge the gap between employers and employees.
“SOM will be interested to see if the pilots will support better health outcomes through reduced absenteeism, and improved retention. SOM looks forward to working with the DWP to achieve a better fit note system.”
Charlotte Osborn-Forde, Chief Executive of The National Academy for Social Prescribing: “We are pleased that social prescribers – also known as link workers – will play a part in the fit note pilots.
“Link workers can support people with social issues that affect their health, including loneliness, isolation and problems with debt or housing.
“They focus on what matters to people and connect them to community-based support – including advice on money or housing, carers’ support, physical activity groups or local activities. There is strong evidence that this approach can benefit wellbeing and mental health.
“No one who is unable to work should be pressured into doing so, but this voluntary scheme should help join the dots between the NHS, employers and communities, and help people get the right support for wider issues that affect their health.”
Head of Policy and Practice at the Royal College of Occupational Therapists, Joe Brunwin, said: “These pilots are a real chance to help more people stay in or return to work and are centred around a core skill of occupational therapy: understanding people as individuals and considering how their environment and circumstances affect their ability to work.
“Fit note evaluations and pilots show occupational therapists are more likely to take a work-focused approach, using ‘may be fit’ advice and adjustments to support return to work. As well as signing fit notes occupational therapists can provide clinical supervision and governance for non-clinical staff.
“It’s encouraging to see a shift away from a purely medical approach to work absence, towards taking a more holistic approach.
“We look forward to seeing how this initiative makes use of occupational therapy expertise and how we can continue to work together as part of a multidisciplinary team, supporting people to stay in, return to and thrive in work.”
In a report today the Commons’ Business and Trade Committee says Ofcom has failed to change Royal Mail’s “unacceptable” performance amid fears it is “not up to the job” of regulating a postal market that is growing in competition and complexity.
Despite incurring Ofcom fines every year since 2022, Royal Mail continues to fail to meet both the public’s expectations and its own regulated targets.
Overall letter volumes have dropped dramatically, and parcel competitors like Amazon are able to “hive off profits” using the universal postal service: delivering parcels to harder to reach addresses without contributing to the cost of the Royal Mail infrastructure that serves them.
From April 2025 to January 2026, just 74.9% of First Class mail was delivered the next day (18.1 percentage points below the target). The Committee estimates that this translates into approximately 126 million First Class letters arriving late over the year.
In 2025, 16 million people (29% of UK adults) experienced letter delays over Christmas, a 50% increase since 2024. 5.7 million people (10% of UK adults) missed vital letters, including those about health appointments, fines and benefit decisions.
Ofcom has failed to provide Parliament with the concrete numbers of letters being delivered late, saying Royal Mail refused them on the grounds of commercial confidentiality. The Committee says if such a prohibition actually exists, it should be changed.
When asked to conduct a proper investigation into whether Royal Mail letter deliveries are being deprioritised in favour of more profitable parcels, Ofcom appears to have satisfied itself with obtaining copies of the relevant policy documents and meeting minutes.
The Committee says Ofcom must deliver better regulation of the postal market, including Access mail and services delivered by Royal Mail’s competitors.
If it fails to do so within six months of this Report, the Secretary of State should consult on statutory changes “to ensure it is fit for the 21st-century postal market”.
Rt Hon Liam Byrne MP, Chair of the Committee, said: “Millions of people are paying the price for a postal service that is simply not delivering.
“Hospital appointments missed, benefit decision notices delayed, fines arriving too late to challenge: these are not minor inconveniences, and they are the consequences of a national service failing to meet the standards the public has every right to expect.
“Despite years of fines and missed targets, Royal Mail’s performance remains unacceptable and Ofcom has failed to drive the change that is needed at the pace that is needed. We were deeply concerned by the apparent lack of any serious investigation into whether letters are being deprioritised in favour of more profitable parcels.
“We recognise that the postal market has changed beyond recognition. Major logistics firms are effectively hiving off profits while relying on Royal Mail’s universal service network to reach harder-to-serve parts of the country.
“The universal service remains one of Britain’s great civic guarantees. But confidence in it is ebbing away, and Ofcom now has six months to prove it has the power and drive to regulate the 21st-century postal market.”
The King’s Speech – the second under this Labour government – is expected to unveil over 35 bills and draft bills ‘facing up to the big challenges our country faces and put the UK on a stronger, fairer path that unlocks hope for people across Britain’. But will it be Starmer’s last?
King’s Speech will strengthen public services, reform the state and reverse decline
Ambitious programme to break with the status quo
New laws reflect big challenges country faces and bolsters UK’s economic, energy and national security
A stronger, fairer country that can weather the storm of global shocks and restore hope will be the focus of the new legislation set out in The King’s Speech today [13 May].
The King’s Speech – the second under this government – is expected to unveil over 35 bills and draft bills facing up to the big challenges our country faces and put the UK on a stronger, fairer path that unlocks hope for people across Britain.
The package of bills is targeted at strengthening the UK’s foundations through measures to bolster economic, energy, national security.
This includes laws to restore order and control to the immigration system, strengthen our public services and reform the state to support a more active government that is on the side of British people.
Under firePrime Minister Keir Starmer said: “The British people expect the Government to get on with the job of changing our country for the better.
“Cutting the cost of living, bringing down hospital waiting lists and keeping our country safe in an increasingly dangerous world.
“Britain stands at a pivotal moment: to press ahead with a plan to build a stronger, fairer country or turn back to the chaos and instability of the past.
“My government will deliver on the promise of change for the British people.”
The government’s first session of Parliament delivered 50 government bills, including the Children and Wellbeing Act, Employment Rights Act, the Great British Energy Act, the Renters’ Rights Act and the Planning and Infrastructure Act.
The legislation passed delivered on core promises made to the British public – making our country safer, stronger and fairer through landmark laws to drive change. That includes help for parents with everyday school costs, stronger rights for victims and survivors, creating the first smoke-free generation to help people live healthier lives, tougher police powers to crack down on antisocial behaviour, and giving communities a say in the decisions that affect them.
This second session will deliver change to our communities.
Economic, energy and national security
The world today is more volatile and dangerous than at any point in recent history. A war on two fronts – in the Middle East and in Ukraine – threatens living standards. The government’s economic plan has put the UK in a better position to weather these storms.
We will rebuild our economy to make us more resilient – and the King’s Speech will drive forward this progress through more protections for small businesses, reforms to regulation to drive growth and innovation, and changes to give businesses the confidence to invest and grow.
Delivering on the government’s manifesto commitment to improve the UK’s trade and investment relationship with the EU, new laws will deliver more trade, more opportunity for young people and help to reduce the cost of living.
We need to get off the fossil fuel rollercoaster with clean, homegrown power we control and electrification of our wider economy. The King’s Speech is expected to unveil the Energy Independence Bill which will give government more power to tackle the affordability crisis and speed up the delivery of clean energy technologies and vital grid infrastructure.
Building on the progress already made to restore order and control to our borders, legislation will be brought forwards to deliver a firm but fair immigration system that restores control and earns public trust.
Bills will also be introduced to meet the evolving threats facing the UK head on, strengthening our defences and keeping pace with modern technologies from cyber-attacks to new powers to counter state threats so we can better disrupt the sharing of extreme content online.
As the Prime Minister set out earlier this week, the King’s Speech will also set out legislation to protect the UK’s steelmaking capacity by giving government options to nationalise British Steel, so that necessary action can be taken if needed while we continue to rebuild the steel sector.
Ending the opportunity crisis
Ending the opportunity crisis requires an active state that can deliver on the government’s commitment to fight for every child. The King’s Speech is expected to include legislation to deliver government’s landmark reforms to transform the school system so that all children get access to an inclusive, high quality mainstream education, and parents don’t have to battle a system just to get their kids the support they deserve.
Removing barriers to opportunity and helping people get on in life is at the heart of the government’s drive to reverse the decline felt across the country. Laws to deliver the manifesto commitment to put an end to the unfair and outdated leasehold system will give people more control over how they live in their own homes and provide stronger rights for homeowners.
Strengthened public services and reformed state
Landmark public service reforms in the NHS, police and special education needs will also strengthen our country. This government is reversing the decline and neglect of our NHS so that it’s built to support people at every stage of their life, as well as preventing them from getting sick in the first place.
A new Bill is expected to be brought forward to accelerate the reform needed to strip back bureaucracy, improve patient care and support early intervention. Legislation to protect much needed social housing stock and better protect domestic abuse survivors will also be included, making sure families have safe, secure, affordable homes to live in.
The new legislation comes alongside the government’s action to ease the cost of living crisis for working people, remove barriers to growth, create more highly paid jobs and equip people with the skills and routes to get on in life.
That includes rolling out free breakfast clubs and supporting parents with free childcare, freezing rail fares, capping the price of bus journeys, and fixing the broken welfare system by tackling the disincentives that pushed too many people away from work and investing £2.5 billion in a youth employment package that will support almost one million young people and help deliver up to 500,000 opportunities to earn and learn.
Meanwhile, following yesterday’s turmoil:
The King has been pleased to approve the following appointments:
Nesil Caliskan MP as Parliamentary Under-Secretary of State in the Ministry of Housing, Communities and Local Government
Natalie Fleet MP as Parliamentary Under-Secretary of State in the Home Office
Catherine Atkinson MP as Parliamentary Under-Secretary of State in the Ministry of Justice
Preet Kaur Gill MP as Parliamentary Under-Secretary of State in the Department of Health and Social Care
Gen Kitchen MP as Comptroller of HM Household (Government Whip)
Deirdre Costigan MP as Junior Lord of the Treasury (Government Whip)
Shaun Davies MP as Assistant Whip, House of Commons
Miatta Fahnbulleh MP, Jess Phillips MP, Alex Davies-Jones MP and Dr Zubir Ahmed MP have left the Government.
AND THIS MORNING, A STATEMENT FROM LABOUR AFFILIATED UNIONS:
Labour’s affiliated unions have been clear that Labour cannot continue on its current path.
Whilst we recognise progress has been made, such as aspects of the Employment Rights Act and the increase in the minimum wage, the results at the election last week were devastating.
Labour is not doing enough to deliver the change that working people voted for at the General Election.
Our focus is on the fundamental change of direction on economic policy and political strategy that unions have been clear is needed, and not on the personalities and unfolding political drama in Westminster.
It’s clear that the Prime Minister will not lead Labour into the next election, and at some stage a plan will have to be put in place for the election of a new Leader.
This is a point where the future of the Party we founded will be debated and determined, and we are working closely as unions to shape a shared vision on policy, political strategy and economic policy that will re-orient Labour back to working people, so Labour do what it was elected to do: govern in the interests of workers.
KEIR Starmer’s future as Prime Minister is looking increasingly untenable this morning as he faces growing calls for this resignation.
Labour suffered the worst set of election results in it’s history last week and anger over the party’s performance – and Starmer’s poor decision-making in particular – has built to boiling point.
Keir Starmer came out fighting with another ‘reset’ speech yesterday but critics were unconvinced by the latest pledges and clamour for the beleaguered PM to step down have continued to grow.
It’s understood some cabinet members are among the 70+ Labour MPS who are urging Starmer to go and this morning’s cabinet meeting promises to be a particularly difficult one for a PM who is seeing support evaporating by the hour.
Labour-supporting trade unions have been calling for a change of direction for some time and some have withdrawn funding from the political party they united to form in 1900. Last Thursday’s catastrophic defeat was the final straw:
JOINT STATEMENT FROM LABOUR’s AFFILIATED UNIONS
‘Labour’s affiliated unions are deeply concerned by the Party’s catastrophic election results. They show a stark disconnect between this Labour Government and the working people and communities that it was elected to represent.
‘Voters right across the country have sent a clear message: that this Government are not delivering on the promised change they so desperately want to see. This cannot continue. Voters want to see a radical new direction from Labour, that stems the tide of division and unites workers and communities in every part of the country.
‘TULO unions are united in calling for a fundamental change of direction on economic policy and political strategy, so that Labour do what it was elected to do: govern in the interests of workers.
‘Labour must also deliver the rebalancing of power in the workplace promised in the New Deal for Working People, in full, without any carve-outs or loopholes. The stakes are too high to continue on this path.
‘Labour’s unions have a responsibility to the Party that we created, and as a result TULO have demanded a meeting with the Prime Minister and Party Leadership to discuss the urgent change in direction that we all know is needed.’
TRACY GILBERT URGES POLICE TO LAUNCH CRIMINAL INVESTIGATION
On Tuesday, 21 April 2026, Tracy Gilbert MP, the Member of Parliament for Edinburgh North and Leith, accused websites advertising prostitution of facilitating industrial-scale sex-trafficking in Scotland and revealed she has written to Police Scotland urging them to launch a criminal investigation into the websites, which continue to openly operate in Scotland.
Websites advertising prostitution are commercial online platforms dedicated solely or partly to advertising individuals for prostitution. A report in February by the UK’s Independent Anti-Slavery Commissioner identified nearly 63,000 listings of women across 12 websites advertising prostitution in the UK at a single point in time. In just one month, the same websites received almost 41.7 million visits.
Frequently referred to as ‘pimping websites’, the UK Government has acknowledged through a written parliamentary question that “adult service websites are now the most significant enabler of trafficking for sexual exploitation”.
Leading a debate in the UK Parliament on sex trafficking in Scotland, Tracy Gilbert MP argued that it is not just third-party criminals using these websites who should be the focus of police attention. Instead, it should be the website operators themselves facing investigation for sex trafficking.
https://twitter.com/i/status/2046563957708558669
In her speech, the Edinburgh North and Leith MP revealed that she had written to the Chief Constable at Police Scotland, urging a criminal investigation into pimping websites.
She stated that websites advertising prostitution knowingly aid prostitution and facilitate the travel of individuals for prostitution – by listing and categorising prostitution adverts according to whether the advertised individual will do so-called ‘outcalls’ – which is where a person travels to the sex buyer for the purpose of prostitution.
These actions, Tracy Gilbert MP stated, mean that the websites themselves constitute human trafficking operations under the Human Trafficking and Exploitation (Scotland) Act 2015.
Following the debate, Tracy Gilbert MP said:“It is a national scandal that the individuals operating Adultwork and Vivastreet have not only been allowed to operate for years with total impunity, but that they have been publicly presented by Government and the National Crime Agency as partners in tackling sex trafficking.
“Pimping websites openly and explicitly facilitate the transportation or transfer of individuals for prostitution. The operators of these platforms publish prostitution adverts in a standardised format – which includes specifying whether the individual being advertised will do ‘out-calls’. …Facilitating the transportation of individuals for prostitution is built into the architecture of Adultwork and Vivastreet.
“I believe the seriousness and scale of these activities warrant an immediate criminal investigation.”
