'Not Welcome!': The Government's Battle with Public Houses Promises a Upcoming Year Challenge.

Labour MPs visiting their local areas this weekend might feel a sense of respite as a chaotic political term ends. But, for those planning to visit their neighborhood bar for a casual beer, holiday spirit could be lacking. Indeed, some may realize they are unwelcome inside.

Over the past few weeks, establishments across the country have been displaying signs that state "Labour MPs Not Welcome" in objection to changes in commercial property taxes revealed by the Chancellor, Rachel Reeves, in her autumn financial statement.

This campaign means one fewer haven for many government backbenchers seeking refuge from the harsh truth of their public disapproval. Backbenchers now report regular antagonism in everyday places after a rocky first 18 months that has seen the party's ratings drop sharply from around 34% to roughly 18%.

"It's challenging being the representative of the area you have forever lived in," said one. "Our neighborhood bar is where we went with the kids and just be a regular family. But the last few times we've just ended up being shouted at by other patrons. Now I'm not even sure we'll be able to be served."

This sense of dismay is visible in a recent video by Tom Hayes, the Labour MP for Bournemouth East, addressing being refused entry to one of his regular haunts, the Larderhouse.

"We're in the festive period," he noted. "But the Larderhouse and other establishments with a 'No Labour MPs' sign in the window, they are damaging the inclusive culture that local entrepreneurs have helped to foster." He continued, "We have to get politics off the main street full stop, but above all at Christmas."

A Cherished Institution in the Public Consciousness

After a challenging period marked by high costs, the pandemic, and evolving social trends, publicans were hopeful the chancellor's statement might bring some support—particularly through a long-promised reform 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 commit £4.3bn over three years in financial support for the retail and hospitality sectors.

While seemingly a positive step, the value of that support package has been overshadowed by the effect of a three-yearly property reassessment, which has caused the valuation of pubs and restaurants to spike from their Covid-affected lows.

From next April, business taxes are set to increase by 115% for the average hotel and 76% for a pub, versus just four percent for big grocery chains and 7% for logistics centres. A major hospitality group, which owns multiple brands, states it will face an extra tax bill of between £40m and £50m as a result.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, commented: "Literally overnight, the worth of our business has increased twofold. That's going to be a significant burden for us."

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

"The price of a pint is now too high. When we first started here 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler stated.

At the same time, Covid-era tax reliefs are falling away, while hospitality operators are still absorbing rises in national insurance and the minimum wage from the previous budget.

"If you tried to design the worst possible financial plan for the hospitality sector and its customers, you would have come close to what was announced," said Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

A number within the Labour party think this is a fight they ought to have avoided, not least because of the central place the neighborhood inn plays in national life.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a chip shop on the island, commented: "We pledged for two years to pubs and hospitality businesses that we are going to provide support but then they get hit by this new assessment. We can't have taxes going down for big corporations but increasing for small restaurants and pubs."

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

Yet political analysts liken confronting publicans to taking on NHS workers in terms of public perception.

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

"In the public's view the local pub is seen as an integral component of the locality, even if a significant number of those same people will infrequently drink there.

"The hazard with making an enemy of pubs is that your critics will quickly accuse you of assaulting the core of this nation and its heritage, particularly in rural areas. And they will be able to produce many heartfelt examples to prove their point."

'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 "MPs Barred" initiative. Lennox reports he has provided signs to nearly 1,000 establishments and is sending out 100 more every day.

His campaign has been backed by a number of well-known figures, such as broadcaster Jeremy Clarkson, who owns a pub called the Farmer's Dog, and singer 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 support for a very long time," stated Lennox, who is calling for a temporary VAT reduction. "The Treasury is presenting this as a helpful policy but that's not what people are seeing, and that is the thing that has angered so many people."

Several within the sector think a campaign banning individual politicians is may backfire. "It's questionable it's a effective strategy to ban the very individuals we should be trying to engage with and speak to," commented Corbett-Collins.

When asked this week, the Treasury pointed to the support being offered to the sector. "We have aided the hospitality industry with the budget's £4.3bn funding. This comes on top of our efforts to simplify licensing, maintaining our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a spokesperson stated.

The business owners, however, are in little mood to yield, even if losing MPs

Kathryn Martin
Kathryn Martin

A seasoned journalist and lifestyle enthusiast with a passion for uncovering stories that inspire and inform readers.