'Not Welcome!': Labour's Clash with Pubs Promises a Fresh Year Headache.

Government ministers heading back to their local areas this weekend might experience a wave of relief as a chaotic parliamentary session wraps up. But, for those hoping to visit their neighborhood bar for a relaxing beer, holiday spirit could be in short supply. Actually, some may discover they are not allowed through the door.

Over the past few weeks, establishments across the country have been putting up signs that declare "No Labour MPs" in protest to adjustments in business rates unveiled by the Chancellor, Rachel Reeves, in her latest financial statement.

This movement means one fewer escape for many government backbenchers seeking solace from the difficult situation of their party's unpopularity. MPs now describe regular animosity in public spaces after a rocky first 18 months that has seen the approval numbers drop sharply from around 34% to roughly 18%.

"It's challenging being the MP of the area you have forever lived in," said one. "The local pub is where we would go with the kids and just be a regular family. But the last few times we've just ended up being confronted by other customers. Now I'm not even sure we'll be able to be served."

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

"It's the Christmas season," he stated. "However the Larderhouse and other businesses with a 'MPs Not Welcome' sign in the window, they are eroding the welcoming atmosphere that business owners have helped to foster." He added, "Politics must be kept politics off the high street completely, but above all at Christmas."

A Cornerstone in the British Psyche

After a difficult few years marked by rising expenses, the COVID-19 crisis, and evolving social trends, licensees were hopeful the chancellor's statement might bring some support—particularly through a much-anticipated revamp of the business rates system.

But the chancellor disappointed those hopes, leaving the system unreformed and opting rather to reduce headline rates and pledge £4.3bn over three years in funding for the shops, pubs, and restaurants sectors.

While seemingly a supportive move, the value of that support package has been overshadowed by the effect of a periodic property revaluation, which has caused the taxable value of hospitality venues to spike from their pandemic-era lows.

Beginning in next April, business taxes are set to rise by more than double for the typical hotel and over three-quarters for a public house, compared with just 4% for large supermarkets and 7% for distribution warehouses. Whitbread, which owns multiple brands, estimates it will face an additional tax bill of between £40m and £50m as a outcome.

Joe Butler, the publican at the Tollemache Arms in Northamptonshire, commented: "With the click of a finger, the value of our business has increased twofold. That's going to be a massive rise for us."

This pressure on publicans is directly felt in the price of a punter's pint.

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

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

"If you wanted to write the most damaging financial plan for the hospitality sector and its customers, you wouldn't have got far away from what we saw," remarked Ash Corbett-Collins, the chair of Camra, the campaign for real ale.

Many within the governing party believe this is a confrontation they should not have picked, not least because of the vital role the neighborhood inn holds in national life.

Richard Quigley, the MP for the Isle of Wight West, who also operates a fish and chip shop on the island, argued: "We promised for two years to the sector that we are going to help you out but then they get hit by this revaluation. We must not see rates going down for big corporations but up for local venues."

Some note that Keir Starmer himself has historically been a regular at his local pub, the Pineapple in north London, and frequently speaks of their significance to neighborhoods. "There is little we prefer than going to the pub for a pint, myself included," the prime minister remarked in February.

However political analysts compare confronting publicans to taking on NHS workers in terms of political risk.

Joe Twyman, co-founder of the polling firm Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a special place in the British psyche.

"To a lot of individuals the local pub is regarded as an key pillar of the community, even if a good proportion of those same people will rarely actually drink there.

"The hazard with making an enemy of pubs is that your political rivals will readily accuse you of undermining the core of this country and its heritage, particularly in rural areas. And they will be able to produce many powerful examples to drive the message home."

'Not a Personal Vendetta'

One such instance is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "No Labour MPs" campaign. Lennox states he has distributed stickers to nearly 1,000 venues and is sending out 100 more every day.

His campaign has received support from several prominent figures, such as television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and pop star Rick Astley, who part-owns a brewpub in north London—although the latter has said he will not formally bar Labour MPs.

"We have long sought support for a years," stated Lennox, who is advocating for a temporary VAT reduction. "The Treasury is dressing this up as a support measure but that's not what people are experiencing, and that is the thing that has frustrated so many people."

A number within the industry feel a protest singling out individual politicians is could backfire. "I doubt it's a wise move to ban the exact people we should be trying to invite in and influence," argued Corbett-Collins.

When questioned this week, the government department spoke of the assistance being made available to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn support package. This follows our initiatives to ease licensing, maintaining our reduction to alcohol duty on draught pints, and capping corporation tax," a official said.

The landlords, however, are in little mood to yield, even if losing MPs

Laura Patton
Laura Patton

A passionate writer and productivity enthusiast sharing tips and stories to inspire others.