'Not Welcome!': The Government's Clash with Pubs Signals a Upcoming Year Problem.

Elected representatives returning to their home districts this weekend might breathe a sigh of respite as a hectic political term wraps up. But, for those planning to frequent their neighborhood bar for a casual beer, holiday spirit could be in short supply. Actually, some may discover they are barred from entry.

Over the past few weeks, businesses throughout the nation have been putting up signs that declare "No Labour MPs" in protest to adjustments in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her autumn budget.

This movement results in one fewer retreat for many government backbenchers seeking solace from the harsh truth of their public disapproval. MPs now say regular antagonism in community settings after a difficult first 18 months that has seen the approval numbers drop sharply from around 34% to roughly 18%.

"It can be hard being the MP of the constituency you have forever lived in," remarked one. "That pub is where we went with the kids and just be a normal family. But the past occasions 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 Labour MP for Bournemouth East, addressing being banned from one of his local pubs, the Larderhouse.

"We're in the festive period," he stated. "However the Larderhouse and other establishments with a 'No Labour MPs' sign in the window, they are eroding the welcoming atmosphere that publicans have helped to foster." He went on, "We need to remove politics off the town centre altogether, but particularly at Christmas."

A Cherished Institution in the National Identity

After a difficult few years marked by economic pressures, the pandemic, and evolving social trends, publicans were anticipating the budget might bring some assistance—namely through a much-anticipated revamp of the business rates system.

But the chancellor poured cold water on those expectations, leaving the system largely unchanged and opting rather to reduce the multiplier and pledge £4.3bn over three years in aid for the shops, pubs, and restaurants sectors.

While seemingly a positive step, 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 hospitality venues to increase sharply from their Covid-affected lows.

Beginning in next April, rates are set to increase by more than double for the typical hotel and 76% for a pub, versus just 4% for big grocery chains and 7% for logistics centres. Whitbread, which operates pubs, restaurants and the Premier Inn hotel chain, states it will face an additional tax bill of between £40m and £50m as a consequence.

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

This pressure on business owners is certainly passed on to the price of a punter's pint.

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

At the same time, pandemic-related tax breaks are ending, while sector businesses are still managing increases in national insurance and the minimum wage from the previous budget.

"To create the least helpful financial plan for pubs and consumers, you couldn't have done much worse than what came out," remarked Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Several within the Labour party feel this is a fight they should not have picked, not least because of the important role the neighborhood inn holds in society.

Richard Quigley, the 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 can't have taxes being reduced for large multinational companies but up for small restaurants and pubs."

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

Yet pollsters compare antagonising publicans to taking on NHS workers in terms of political risk.

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

"In the public's view the local pub is seen as an key pillar of the community, even if a good proportion of those same people will infrequently drink there.

"The political risk with antagonising pubs is that your political rivals will readily accuse you of assaulting the core of this country and its traditions, particularly in rural areas. And they will be able to produce many heartfelt examples to prove their point."

'Nothing Personal'

One such case is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" campaign. Lennox says he has handed out notices to nearly 1,000 venues and is mailing 100 more every day.

His protest has gained the endorsement of a number of high-profile figures, including television presenter Jeremy Clarkson, who owns 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 clarified he will not actually ban Labour MPs.

"We have been asking for relief for a years," said Lennox, who is advocating for a temporary VAT reduction. "The government 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."

Some within the sector think a protest banning individual politicians is may be counterproductive. "It's questionable it's a good idea to ban the exact people we should be trying to engage with and lobby," argued Corbett-Collins.

When pressed this week, the government department spoke of the support being made available to the sector. "We have aided pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our initiatives to simplify licensing, keeping our cut to alcohol duty on beer from the tap, and capping corporation tax," a representative said.

The business owners, nevertheless, are in not the frame of mind to compromise, even if turning away MPs

Janice Holden
Janice Holden

Environmental scientist and sustainability advocate passionate about promoting eco-conscious living through practical tips and insights.