'You're Barred!': The Government's Clash with Pubs Promises a New Year Headache.

Labour MPs visiting their constituencies this end of the week might breathe a sigh of relief as a hectic political term ends. Yet, for those looking to stop by their community tavern for a casual pint, festive cheer could be scarce. Actually, some may find they are barred from entry.

In recent weeks, venues across the country have been posting signs that declare "No Labour MPs" in demonstration to revisions in business rates announced by the Chancellor, Rachel Reeves, in her most recent financial statement.

This campaign results in one fewer escape for many elected officials seeking solace from the bruising reality of their party's unpopularity. MPs now describe commonplace antagonism in everyday places after a difficult first year and a half that has seen the government's support plummet from around a third to roughly 18%.

"It is difficult being the representative of the area you have forever lived in," commented one. "The local pub is where we used to go with the kids and just be a regular family. But the past occasions we've just ended up being shouted at by other drinkers. Now I'm not even sure we'll be able to be served."

This feeling of frustration is evident in a recent video by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being refused entry to one of his local pubs, the Larderhouse.

"It's meant to be a time of joy," he stated. "However the Larderhouse and other establishments with a 'No Labour MPs' sign in the window, they are eroding the welcoming atmosphere that local entrepreneurs have helped to nourish." He continued, "We have to get politics off the main street completely, but particularly at Christmas."

A Cornerstone in the British Psyche

After a difficult few years marked by economic pressures, the COVID-19 crisis, and changing habits, licensees were optimistic the budget might bring some assistance—particularly through a long-promised reform of the commercial tax system.

But the chancellor poured cold water on those expectations, leaving the system largely unchanged and opting rather to lower the multiplier and allocate £4.3bn over three years in funding for the retail and hospitality sectors.

While seemingly a positive step, the benefit of that funding pledge has been dwarfed by the effect of a periodic property reassessment, which has caused the taxable value of pubs and restaurants to spike from their Covid-affected lows.

Starting from next April, business taxes are set to rise by 115% for the average hotel and 76% for a public house, in contrast to just four percent for big grocery chains and seven percent for logistics centres. A major hospitality group, which operates multiple brands, states it will face an additional tax bill of between £40m and £50m as a outcome.

Joe Butler, the publican at the Tollemache Arms in Northamptonshire, commented: "With the click of a finger, the valuation of our business has doubled. That's going to be a huge increase for us."

This financial strain on publicans is directly passed on to the price of a customer's pint.

"A pint of beer 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.

Simultaneously, Covid-era tax reliefs are being phased out, while hospitality operators are still absorbing increases in national insurance and the living wage from last year's budget.

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

A number within the governing party think this is a fight they ought to have avoided, not least because of the vital place the local pub holds in British culture.

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 pubs and hospitality businesses that we are going to provide support but then they get slapped with this new assessment. We must not see rates being reduced for big corporations but increasing for small restaurants and pubs."

Commentators note that Keir Starmer himself has often been a frequent patron at his local pub, the Pineapple in north London, and regularly mentions their value to local communities. "We all enjoy nothing more than going to the pub for a pint, myself included," the prime minister remarked in February.

However pollsters compare confronting publicans to challenging NHS workers in terms of political risk.

Joe Twyman, director of the polling firm Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a special place in the public imagination.

"In the public's view the neighborhood inn is regarded as an important part of the locality, even if a significant number of those same people will infrequently drink there.

"The political risk with antagonising pubs is that your critics will quickly accuse you of undermining the core of this nation and its traditions, especially in the countryside. And they will be able to produce many heartfelt examples to prove their point."

'Not a Personal Vendetta'

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 states he has distributed stickers to nearly 1,000 premises and is mailing 100 more every day.

His campaign has gained the endorsement of several prominent figures, including television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a brewpub in north London—however the latter has clarified he will not actually ban Labour MPs.

"We have been asking for help for a considerable period," explained Lennox, who is calling for a temporary VAT reduction. "The Treasury is dressing this up as a helpful policy but that's not what people are experiencing, and that is the thing that has angered so many people."

Several within the sector believe a campaign banning individual Labour MPs is may have unintended consequences. "I doubt it's a wise move to ban the exact people we should be trying to persuade and speak to," commented Corbett-Collins.

When questioned this week, the Exchequer spoke of the assistance being offered to the sector. "We are supporting the hospitality industry with the budget's £4.3bn support package. This is in addition to our initiatives to ease licensing, keeping our reduction to alcohol duty on beer from the tap, and capping corporation tax," a official commented.

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

Michael Hodge
Michael Hodge

Zkušený novinář se specializací na politické a ekonomické zprávy, s více než 10 lety praxe v médiích.