'Not Welcome!': Labour's Dispute with Public Houses Forecasts a Fresh Year Problem.

Labour MPs visiting their local areas this weekend might experience a wave of relief as a hectic parliamentary session concludes. But, for those planning to visit their local pub for a restorative pint, holiday spirit could be in short supply. Indeed, some may discover they are not allowed through the door.

Over the past few weeks, venues across the country have been displaying signs that proclaim "MPs Barred" in objection to changes in commercial property taxes announced by the Chancellor, Rachel Reeves, in her most recent budget.

This protest results in one fewer escape for many Labour MPs seeking solace from the harsh truth of their public disapproval. Backbenchers now describe frequent hostility in everyday places after a challenging first period that has seen the government's support plummet from around 34% 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 would 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 patrons. Now I'm not even sure we'll be able to be served."

This sense of dismay is visible in a social media post by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being barred from one of his local pubs, the Larderhouse.

"We're in the festive period," he stated. "Yet the Larderhouse and other establishments with a 'No Labour MPs' sticker in the window, they are damaging the inclusive culture that publicans have helped to nourish." He continued, "Politics must be kept politics off the high street completely, but above all at Christmas."

A Cherished Institution in the British Psyche

After a tough times marked by rising expenses, the COVID-19 crisis, and evolving social trends, publicans were hopeful the budget might bring some support—specifically through a long-promised overhaul of the business rates system.

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

While perhaps a supportive move, the impact of that funding pledge has been dwarfed by the effect of a periodic property reassessment, which has caused the valuation of hospitality venues to spike from their Covid-affected lows.

From next April, rates are set to jump by 115% for the average hotel and over three-quarters for a pub, compared with just four percent for large supermarkets and seven percent for distribution warehouses. Whitbread, which operates multiple brands, states it will face an extra tax bill of between £40m and £50m as a outcome.

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

This financial strain on business owners is inevitably felt in the price of a punter's pint.

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

Furthermore, Covid-era tax breaks are being phased out, while sector businesses are still absorbing increases in employer contributions and the minimum wage from last year's budget.

"If you wanted to write the least helpful financial plan for the hospitality sector and its customers, you couldn't have done much worse than what came out," said Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Many within the governing party feel this is a fight they ought to have avoided, not least because of the vital role the local pub holds in British culture.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a fish and chip shop on the island, commented: "We said 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 taxes being reduced for big corporations but up for small restaurants and pubs."

Commentators point out that Keir Starmer himself has long been a regular at his local, the Pineapple in north London, and regularly mentions their importance to neighborhoods. "There is little we prefer than going to the pub for a drink, myself included," the prime minister said in February.

However strategists liken antagonising publicans to challenging NHS workers in terms of political risk.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, said: "In fiction and in fact, pubs have a special place in the public imagination.

"For many people the local pub is seen as an important part of the community, even if a significant number of those same people will infrequently drink there.

"The danger for politicians with antagonising pubs is that your political rivals will readily accuse you of attacking the core of this country and its traditions, particularly in the countryside. And they will be able to produce many heartfelt examples to make their case."

'Not a Personal Vendetta'

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

His action has gained the endorsement of a number of prominent figures, such as 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—however the latter has indicated he will not actually ban Labour MPs.

"We have pleaded for relief for a very long time," explained Lennox, who is demanding a temporary VAT reduction. "The Treasury is dressing this up as a helpful policy but that's not what people are seeing, and that is the thing that has aggrieved so many people."

A number within the industry think a campaign targeting individual politicians is may backfire. "I doubt it's a effective strategy to ban the precise representatives we should be trying to invite in and lobby," argued Corbett-Collins.

When pressed this week, the Exchequer spoke of the assistance being provided to the sector. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our work to ease licensing, keeping our cut to alcohol duty on beer from the tap, and limiting corporation tax," a representative said.

The publicans, however, are in little mood to yield, even if turning away MPs

Jennifer Keith
Jennifer Keith

A passionate writer and creative thinker sharing insights on innovation and inspiration.