'Not Welcome!': Labour's Dispute with Pubs Signals a Fresh Year Headache.

Elected representatives returning to their home districts this end of the week might breathe a sigh of respite as a chaotic parliamentary session ends. Yet, for those looking to visit their neighborhood bar for a relaxing drink, festive cheer could be in short supply. In fact, some may realize they are barred from entry.

Over the past few weeks, businesses throughout the nation have been posting signs that state "MPs Barred" in demonstration to changes in business rates revealed by the Chancellor, Rachel Reeves, in her most recent financial statement.

This campaign means one fewer escape for many government backbenchers seeking solace from the difficult situation of their public disapproval. Representatives now report frequent antagonism in public spaces after a rocky first period that has seen the approval numbers fall from around 34% to roughly under a fifth.

"It is difficult being the representative of the area you have always lived in," said one. "The local pub is where we used to go with the kids and just be a ordinary family. But the last few times we've just ended up being verbally abused by other drinkers. Now I'm not even sure we'll be able to get in."

This feeling of frustration is visible in a social media post by Tom Hayes, the Member of Parliament for Bournemouth East, lamenting being banned from one of his regular haunts, the Larderhouse.

"It's the Christmas season," he stated. "However the Larderhouse and other businesses with a 'No Labour MPs' sign in the window, they are undermining the community spirit that publicans have helped to foster." He continued, "Politics must be kept politics off the high street full stop, but particularly at Christmas."

A Cornerstone in the National Identity

After a difficult few years marked by economic pressures, the pandemic, and evolving social trends, publicans were hopeful the budget might bring some support—namely through a long-promised revamp of the commercial tax system.

Yet the chancellor dashed those hopes, leaving the system largely unchanged and choosing instead to reduce headline rates and allocate £4.3bn over three years in financial support for the shops, pubs, and restaurants sectors.

While perhaps a gesture of goodwill, the benefit of that funding pledge has been dwarfed by the effect of a three-yearly property revaluation, which has caused the taxable value of pubs and restaurants to increase sharply from their Covid-affected lows.

Starting from next April, business taxes are set to increase by more than double for the average hotel and 76% for a pub, in contrast to just 4% for large supermarkets and seven percent for distribution warehouses. A major hospitality group, which owns pubs, restaurants and the Premier Inn hotel chain, estimates it will face an extra tax bill of between £40m and £50m as a consequence.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "Virtually instantly, the worth of our business has increased twofold. That's going to be a huge increase for us."

This burden on publicans is inevitably felt in the price of a customer's pint.

"The price of a pint is now too high. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler said.

Furthermore, Covid-era tax discounts are being phased out, while hospitality operators are still coping with rises in national insurance and the minimum wage from last year's budget.

"If you wanted to write the worst possible financial plan for the hospitality sector and its customers, you wouldn't have got far away from what we saw," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

Many within the Labour party think this is a confrontation they ought to have avoided, not least because of the important place the local pub holds in British culture.

Richard Quigley, the MP for the Isle of Wight West, who also runs a fish and chip shop on the island, said: "We pledged for two years to the sector that we are going to help you out but then they get slapped with this new assessment. We must not see rates being reduced for large multinational companies but increasing for independent businesses."

Commentators highlight that Keir Starmer himself has long been a regular at his local, the Pineapple in north London, and frequently speaks of their value to neighborhoods. "There's nothing any of us like better than going to the pub for a pint, myself included," the prime minister stated in February.

But political analysts liken antagonising pub owners to taking on NHS workers in terms of political risk.

Joe Twyman, director of the polling firm Deltapoll, noted: "From soap operas to real life, pubs have a cherished status in the British psyche.

"In the public's view the neighborhood inn is regarded as an key pillar of the locality, even if a significant number of those same people will seldom drink there.

"The danger for politicians with making an enemy of pubs is that your political rivals will easily be able to accuse you of assaulting the core of this nation and its heritage, especially in the countryside. And they will be able to produce many emotive examples to prove their point."

'A Matter of Principle'

One such example is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "No Labour MPs" campaign. Lennox states he has distributed notices to nearly 1,000 establishments and is dispatching 100 more every day.

His campaign has been backed by several high-profile figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a bar in north London—although the latter has said he will not actually ban Labour MPs.

"We have been asking for help for a very long time," said Lennox, who is calling for a short-term VAT reduction. "The government is dressing this up as a support measure but that's not what people are experiencing, and that is the thing that has angered so many people."

Several within the hospitality trade think a campaign singling out individual politicians is may have unintended consequences. "I'm not sure it's a wise move to ban the precise representatives we should be trying to invite in and lobby," commented Corbett-Collins.

When pressed this week, the Treasury highlighted the support being offered to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our work to simplify licensing, keeping our cut to alcohol duty on beer from the tap, and limiting corporation tax," a official commented.

The publicans, however, are in no mood to yield, even if turning away MPs

Kayla Boone
Kayla Boone

A seasoned digital strategist with over a decade of experience in web development and creative design.