'Entry Denied!': The Government's Battle with Pubs Promises a New Year Challenge.

Labour MPs heading back to their local areas this end of the week might feel a sense of relief as a hectic political term ends. Yet, for those planning to stop by their community tavern for a casual beer, goodwill could be lacking. Indeed, some may realize they are not allowed through the door.

In recent weeks, businesses nationwide have been posting signs that declare "Labour MPs Not Welcome" in demonstration to adjustments in commercial property taxes announced by the Chancellor, Rachel Reeves, in her autumn budget.

This campaign results in one fewer retreat for many Labour MPs seeking refuge from the difficult situation of their party's unpopularity. Backbenchers now report frequent antagonism in everyday places after a difficult first period that has seen the approval numbers plummet from around a third to roughly under a fifth.

"It is difficult being the representative of the constituency you have always lived in," said one. "Our neighborhood bar is where we went with the kids and just be a ordinary family. But the past occasions we've just ended up being confronted by other patrons. Now I'm not even sure we'll be able to enter."

This palpable disappointment is evident in a social media post by Tom Hayes, the Labour MP for Bournemouth East, discussing being banned from one of his regular haunts, the Larderhouse.

"It's the Christmas season," he stated. "However the Larderhouse and other establishments with a 'MPs Not Welcome' sign in the window, they are eroding the welcoming atmosphere that local entrepreneurs have helped to cultivate." He continued, "We have to get politics off the main street full stop, but above all at Christmas."

A Cornerstone in the Public Consciousness

After a challenging period marked by economic pressures, the COVID-19 crisis, and changing habits, publicans were optimistic the chancellor's statement might bring some support—specifically through a overdue overhaul of the business rates system.

However the chancellor disappointed those expectations, leaving the system largely unchanged and choosing instead to lower headline rates and pledge £4.3bn over three years in financial support for the retail and hospitality sectors.

While seemingly a supportive move, the value of that funding pledge has been minimized by the effect of a periodic property revaluation, which has caused the taxable value of hospitality venues to spike from their Covid-affected lows.

Starting from next April, rates are set to rise by 115% for the typical hotel and 76% for a public house, in contrast to just 4% for big grocery chains and seven percent for distribution warehouses. Whitbread, which operates pubs, restaurants and the Premier Inn hotel chain, says it will face an extra tax bill of between £40m and £50m as a consequence.

Joe Butler, the publican at the Tollemache Arms in Northamptonshire, explained: "Virtually instantly, the value of our business has increased twofold. That's going to be a significant burden for us."

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

"A pint of beer is now prohibitively expensive. When we first started here 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler stated.

Simultaneously, pandemic-related tax discounts are falling away, while sector businesses are still managing increases in employer contributions and the living wage from last year's budget.

"If you wanted to write the least helpful budget for pubs and consumers, you would have come close to what came out," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

A number within the governing party feel this is a battle they should not have picked, not least because of the central role the local pub holds in national life.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a chip shop on the island, argued: "We pledged for two years to the sector that we are going to offer relief but then they get hit by this revaluation. We can't have taxes being reduced for big corporations but up for local venues."

Commentators note that Keir Starmer himself has long been a regular at his local pub, the Pineapple in north London, and frequently speaks of their value to local communities. "There's nothing any of us like better than going to the pub for a drink, myself included," the PM remarked in February.

However political analysts compare confronting publicans to doing so with NHS workers in terms of political risk.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, explained: "In fiction and in fact, pubs have a unique position in the national consciousness.

"In the public's view the neighborhood inn is perceived to be an key pillar of the locality, even if a good proportion of those same people will infrequently drink there.

"The danger for politicians with making an enemy of pubs is that your political rivals will readily accuse you of assaulting the very heart of this country and its traditions, particularly in the countryside. And they will be able to produce many powerful examples to make their case."

'A Matter of Principle'

One such instance is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" campaign. Lennox reports he has provided notices to nearly 1,000 establishments and is dispatching 100 more every day.

His action has gained the endorsement of several well-known figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a brewpub in north London—though the latter has clarified he will not actually ban Labour MPs.

"We have been asking for support for a years," said Lennox, who is advocating for a short-term VAT reduction. "The Treasury is spinning this as a support measure but that's not what people are seeing, and that is the thing that has angered so many people."

Several within the industry believe a campaign targeting individual Labour MPs is could backfire. "I'm not sure it's a effective strategy to ban the exact people we should be trying to persuade and lobby," argued Corbett-Collins.

When questioned this week, the government department spoke of the assistance being provided to hospitality. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn investment. This follows our work to ease licensing, keeping our reduction to alcohol duty on draught pints, and limiting corporation tax," a representative said.

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

Michael Alexander
Michael Alexander

A tech enthusiast and software developer with a passion for open source projects and community-driven innovation.