Delivery Charges in Highlands and Islands

Opened the debate

People living in the Highland Council area pay the highest average price for large parcel deliveries. The highlands and islands of Scotland face delivery charges that are 20% higher than those paid by people in Glasgow. My constituent Graham, who decided not to order a parcel due to excessive delivery costs, exemplifies how delivery charges can negatively impact residents.

Government Response

It is a pleasure to serve under your chairmanship, Ms Rees. I congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing today's important debate. Its subject continues to be important for his constituents and, similarly, for other Members across the House, including, as he mentioned, my hon. Friend the Member for Moray (Douglas Ross), who raised this last, in December 2020. The Government recognise that delivery costs can be higher when reaching some parts of the UK, but delivery surcharges should be based on real costs of transportation. Businesses are strongly encouraged, as far as possible, to provide consumers with a range of affordable delivery options. Moreover, the Government have ensured that there is access for everyone, including small retailers, to an affordable, consistently priced postal service for deliveries across the UK under the universal postal service. Retailers need transparency of costs, including delivery charges. The Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 set out that the information given by traders to consumers regarding those delivery costs must be up front and transparent. In response to concerns raised previously by hon. Members about understanding the rules, highland trading standards established a website to provide advice and delivery charges for consumers and businesses. The Competition and Markets Authority (CMA) has issued advisory notices to major retail platforms and published guidance to retailers who sell via those platforms. Ofcom found that operators take different approaches to the pricing of parcel delivery services. Some vary their prices by location, but others do not. Steps taken by suppliers to apply no delivery surcharge will put downward pressure on charges from other suppliers. The Government have no role in interfering with business decisions and continue to look at this issue through the Consumer Protection Partnership, including consumer advocates, trading standards and Government representatives. Ofcom will be undertaking a review of its future regulatory framework for post over the next year, inviting views and comments from stakeholders before concluding its review in 2022. The updated guidance aims to drive messaging out to online retailer platforms and delivery services. I continue to believe that the legislative framework is robust and provides appropriate protections for consumers. My priority is continued enforcement of the law to ensure that customers are not surprised by delivery charges and are able to make choices based on clear information.