'Not Welcome!': The Government's Dispute with Public Houses Promises a Upcoming Year Headache.

Labour MPs visiting their constituencies this weekend might feel a sense of relief as a hectic political term ends. However, for those looking to stop by their neighborhood bar for a restorative drink, goodwill could be in short supply. Indeed, some may discover they are not allowed through the door.

For weeks, businesses throughout the nation have been posting signs that proclaim "Labour MPs Not Welcome" in demonstration to revisions in business rates unveiled by the Chancellor, Rachel Reeves, in her most recent budget.

This movement means one fewer escape for many Labour MPs seeking solace from the bruising reality of their slumping poll ratings. Representatives now describe commonplace animosity in community settings after a difficult first 18 months that has seen the party's ratings fall from around a third to roughly 18%.

"It's challenging being the representative of the area you have always lived in," said one. "Our neighborhood bar is where we used to go with the kids and just be a regular family. But the recent visits we've just ended up being confronted by other customers. Now I'm not even sure we'll be able to enter."

This palpable disappointment is clear in a recent video by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being banned from one of his regular haunts, the Larderhouse.

"We're in the festive period," he said. "However the Larderhouse and other establishments with a 'No Labour MPs' sign in the window, they are undermining the community spirit that local entrepreneurs have helped to foster." He continued, "We have to get politics off the town centre altogether, but above all at Christmas."

A Cherished Institution in the Public Consciousness

After a difficult few years marked by high costs, the COVID-19 crisis, and evolving social trends, licensees were anticipating the chancellor's statement might bring some support—namely through a overdue overhaul of the business rates system.

Yet the chancellor disappointed those hopes, leaving the system unreformed and opting rather to lower headline rates and pledge £4.3bn over three years in financial support for the retail and hospitality sectors.

While perhaps a gesture of goodwill, the value of that funding pledge has been minimized by the effect of a periodic property revaluation, which has caused the valuation of hospitality venues to spike from their Covid-affected lows.

Starting from next April, business taxes are set to rise by 115% for the typical hotel and over three-quarters for a public house, in contrast to just 4% for large supermarkets and 7% for logistics centres. Whitbread, which owns multiple brands, states it will face an extra tax bill of between £40m and £50m as a result.

Joe Butler, the publican at the Tollemache Arms in Northamptonshire, commented: "Literally overnight, the worth of our business has doubled. That's going to be a massive rise for us."

This pressure on publicans is inevitably reflected in the price of a punter's pint.

"The price of a pint is now unaffordable. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler added.

At the same time, Covid-era tax reliefs are ending, while hospitality operators are still managing increases in employer contributions and the minimum wage from the previous budget.

"To create the worst possible budget for the hospitality sector and its customers, you couldn't have done much worse than what came out," remarked Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Several within the governing party believe this is a fight they ought to have avoided, not least because of the vital role the local pub holds in society.

Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a chip shop on the island, commented: "We promised for two years to the sector that we are going to help you out but then they get affected by this new assessment. We cannot allow rates being reduced for large multinational companies but up for local venues."

Some point out that Keir Starmer himself has long been a frequent patron at his local pub, the Pineapple in north London, and regularly mentions their value to local communities. "There's nothing any of us like better than going to the local for a drink, myself included," the prime minister said in February.

However political analysts compare picking a fight with 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 special place in the national consciousness.

"For many people the local pub is perceived to be an key pillar of the community, even if a large segment of those same people will seldom drink there.

"The danger for politicians with making an enemy of pubs is that your opponents will readily accuse you of assaulting the very heart of this nation and its heritage, especially in rural areas. And they will be able to produce many heartfelt examples to drive the message home."

'A Matter of Principle'

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

His campaign has received support from several prominent figures, such as broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—although the latter has indicated he will not actually ban Labour MPs.

"We have pleaded for relief for a very long time," said Lennox, who is advocating for a temporary VAT reduction. "The government is spinning this as a helpful policy but that's not what people are feeling, and that is the thing that has aggrieved so many people."

Several within the industry think a campaign banning individual politicians is may be counterproductive. "I'm not sure it's a wise move to ban the very individuals we should be trying to engage with and lobby," said Corbett-Collins.

When questioned this week, the government department highlighted the package being offered to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn investment. This is in addition to our work to simplify licensing, keeping our cut to alcohol duty on beer from the tap, and limiting corporation tax," a representative said.

The landlords, on the other hand, are in not the frame of mind to compromise, even if alienating MPs

Gregory Wright
Gregory Wright

A mindfulness coach and writer passionate about helping others achieve personal growth through reflective practices.