'You're Barred!': Labour's Battle with Pubs Forecasts a Fresh Year Headache.

Elected representatives visiting their home districts this weekend might feel a sense of relief as a turbulent political term ends. But, for those hoping to stop by their local pub for a relaxing beer, goodwill could be in short supply. Indeed, some may discover they are not allowed through the door.

For weeks, venues across the country have been displaying signs that declare "No Labour MPs" in objection to revisions in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her most recent financial statement.

This campaign results in one fewer retreat for many Labour MPs seeking solace from the difficult situation of their slumping poll ratings. MPs now say commonplace antagonism in everyday places after a rocky first 18 months that has seen the party's ratings plummet from around 34% to roughly under a fifth.

"It's challenging being the MP of the area you have always lived in," said one. "That pub is where we went 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 enter."

This sense of dismay is evident in a recent video by Tom Hayes, the Labour MP for Bournemouth East, addressing being banned from one of his local pubs, the Larderhouse.

"It's the Christmas season," he stated. "But the Larderhouse and other establishments with a 'MPs Not Welcome' notice in the window, they are eroding the welcoming atmosphere that local entrepreneurs have helped to foster." He added, "We need to remove politics off the high street altogether, but above all at Christmas."

'Pubs Have a Special Place in the British Psyche

After a difficult few years marked by rising expenses, the pandemic, and changing habits, licensees were anticipating the budget might bring some assistance—specifically through a overdue revamp of the business rates system.

However the chancellor poured cold water on those hopes, leaving the system unreformed and opting rather to reduce headline rates and commit £4.3bn over three years in financial support for the retail and hospitality sectors.

While perhaps a gesture of goodwill, the benefit of that funding pledge has been minimized 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.

Starting from next April, business taxes are set to rise by more than double for the average hotel and over three-quarters for a pub, in contrast to just four percent for large supermarkets and seven percent for logistics centres. A major hospitality group, which operates pubs, restaurants and the Premier Inn hotel chain, states 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 valuation of our business has increased twofold. That's going to be a massive rise for us."

This pressure on business owners is certainly reflected in the price of a customer's pint.

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

Simultaneously, Covid-era tax discounts are ending, while sector businesses are still coping with rises in employer contributions and the living wage from last year's budget.

"To create the most damaging financial plan for the hospitality sector and its customers, you wouldn't have got far away from what we saw," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Several within the governing party feel this is a fight they ought to have avoided, not least because of the important place the neighborhood inn plays 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, commented: "We promised for two years to the sector that we are going to offer relief but then they get affected by this revaluation. We cannot allow taxes being reduced for large multinational companies but up for small restaurants and pubs."

Commentators note that Keir Starmer himself has often been a frequent patron at his local, the Pineapple in north London, and often references their value to local communities. "There is little we prefer than going to the pub for a pint, myself included," the prime minister remarked in February.

Yet pollsters compare picking a fight with pub owners to doing so with NHS workers in terms of political risk.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a special place in the British psyche.

"For many people the neighborhood inn is seen as an integral component of the community, even if a significant number of those same people will seldom drink there.

"The hazard with making an enemy of pubs is that your opponents will quickly accuse you of attacking the foundation of this country and its history, especially in rural areas. And they will be able to produce many powerful examples to drive the message home."

'Not a Personal Vendetta'

One such case is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "No Labour MPs" initiative. Lennox says he has provided signs to nearly 1,000 venues and is dispatching 100 more every day.

His campaign has received support from a number of prominent figures, such as television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—though the latter has said he will not actually ban Labour MPs.

"We have been asking for relief for a very long time," stated Lennox, who is calling for a temporary VAT reduction. "The Treasury is spinning this as a support measure but that's not what people are experiencing, and that is the thing that has aggrieved so many people."

A number within the industry think a protest banning individual politicians is could backfire. "I doubt it's a effective strategy to ban the exact people we should be trying to invite in and influence," argued Corbett-Collins.

When asked this week, the Treasury spoke of the support being made available to hospitality. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn investment. This comes on top of our efforts to ease licensing, keeping our reduction to alcohol duty on draught pints, and capping corporation tax," a representative said.

The publicans, however, are in little mood to compromise, even if alienating MPs

Kyle Vaughn
Kyle Vaughn

A passionate education advocate and deal hunter, sharing insights to help students maximize savings.