'Not Welcome!': The Government's Dispute with Pubs Promises a Upcoming Year Problem.

Labour MPs heading back to their home districts this weekend might breathe a sigh of relief as a hectic parliamentary session concludes. But, for those looking to stop by their neighborhood bar for a restorative drink, goodwill could be lacking. Actually, some may find they are barred from entry.

Over the past few weeks, venues nationwide have been posting signs that declare "Labour MPs Not Welcome" in protest to revisions in commercial property taxes unveiled by the Finance Minister, Rachel Reeves, in her most recent financial statement.

This campaign translates to one fewer retreat for many elected officials seeking refuge from the harsh truth of their party's unpopularity. Backbenchers now describe commonplace hostility in everyday places after a rocky first period that has seen the approval numbers plummet from around a third to roughly 18%.

"It can be hard being the representative of the constituency you have forever lived in," said one. "The local pub is where we used to go with the kids and just be a normal family. But the past occasions we've just ended up being verbally abused by other customers. Now I'm not even sure we'll be able to be served."

This sense of dismay is evident in a recent video by Tom Hayes, the Labour MP for Bournemouth East, lamenting being refused entry to one of his local pubs, the Larderhouse.

"It's meant to be a time of joy," he said. "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 cultivate." He added, "We need to remove politics off the main street full stop, but especially at Christmas."

'Pubs Have a Special Place in the National Identity

After a tough times marked by rising expenses, the pandemic, and evolving social trends, publicans were optimistic the chancellor's statement might bring some support—specifically through a overdue revamp of the business rates system.

However the chancellor disappointed those hopes, keeping the system unreformed and opting rather to reduce the multiplier and pledge £4.3bn over three years in funding for the retail and hospitality sectors.

While seemingly a gesture of goodwill, the value of that funding pledge has been dwarfed by the effect of a three-yearly property revaluation, which has caused the taxable value of pubs and restaurants to surge from their pandemic-era lows.

Starting from next April, rates are set to jump by more than double for the average hotel and 76% for a pub, versus just four percent for big grocery chains and 7% for distribution warehouses. A major hospitality group, which operates multiple brands, estimates 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, explained: "With the click of a finger, the worth of our business has doubled. That's going to be a massive rise for us."

This financial strain on publicans is inevitably 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 verging on £7 a pint," Butler said.

Furthermore, pandemic-related tax reliefs are being phased out, while sector businesses are still absorbing increases in national insurance and the minimum wage from the previous budget.

"To create the least helpful financial plan for pubs and consumers, you would have come close to what came out," said Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Many within the governing party think this is a confrontation they should not have picked, not least because of the central place the neighborhood inn holds in British culture.

Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a fish and chip shop on the island, said: "We promised for two years to pubs and hospitality businesses that we are going to offer relief but then they get hit by this new assessment. We cannot allow rates going down for big corporations but increasing for local venues."

Observers highlight that Keir Starmer himself has often been a frequent patron at his local pub, the Pineapple in north London, and often references their value to neighborhoods. "We all enjoy nothing more than going to the pub for a drink, myself included," the prime minister remarked in February.

Yet strategists liken confronting publicans to challenging NHS workers in terms of public perception.

Joe Twyman, co-founder of the polling firm Deltapoll, said: "In fiction and in fact, pubs have a cherished status in the public imagination.

"In the public's view the neighborhood inn is perceived to be an integral component of the community, even if a large segment of those same people will infrequently drink there.

"The hazard with making an enemy of pubs is that your political rivals will quickly accuse you of attacking the foundation of this nation and its traditions, particularly in the countryside. And they will be able to produce many emotive examples to prove their point."

'Nothing Personal'

One such example is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "No Labour MPs" campaign. Lennox says he has distributed notices to nearly 1,000 venues and is dispatching 100 more every day.

His campaign has been backed by several prominent figures, such as broadcaster 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 clarified he will not refuse service to Labour MPs.

"We have long sought relief for a considerable period," explained Lennox, who is demanding a short-term VAT reduction. "The Treasury is presenting this as a relief package but that's not what people are experiencing, and that is the thing that has frustrated so many people."

Several within the industry believe a protest singling out individual Labour MPs is likely to have unintended consequences. "It's questionable it's a effective strategy to ban the exact people we should be trying to engage with and lobby," argued Corbett-Collins.

When questioned this week, the Exchequer spoke of the package being made available to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn funding. This is in addition to our work to simplify licensing, keeping our reduction to alcohol duty on draught pints, and capping corporation tax," a official said.

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

Robert Duran
Robert Duran

Certified fitness trainer and nutritionist passionate about helping others achieve their wellness goals through practical advice.