'Entry Denied!': Labour's Clash with Public Houses Promises a New Year Challenge.

Government ministers heading back to their local areas this end of the week might feel a sense of respite as a hectic parliamentary session ends. But, for those hoping to stop by their local pub for a relaxing pint, festive cheer could be lacking. Indeed, some may discover they are not allowed through the door.

In recent weeks, establishments across the country have been displaying signs that proclaim "No Labour MPs" in protest to adjustments in business rates unveiled by the Finance Minister, Rachel Reeves, in her latest budget.

This protest results in one fewer escape for many elected officials seeking solace from the bruising reality of their public disapproval. Backbenchers now report frequent antagonism in community settings after a rocky first period that has seen the government's support plummet from around a third to roughly under a fifth.

"It can be hard being the representative of the constituency you have forever lived in," remarked one. "That 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 confronted by other drinkers. Now I'm not even sure we'll be able to get in."

This palpable disappointment is evident in a social media post by Tom Hayes, the Labour MP for Bournemouth East, lamenting being barred from one of his regular haunts, the Larderhouse.

"It's meant to be a time of joy," he noted. "However the Larderhouse and other establishments with a 'No Labour MPs' notice in the window, they are damaging the inclusive culture that publicans have helped to nourish." He added, "We have to get politics off the main street altogether, but particularly at Christmas."

'Pubs Have a Special Place in the National Identity

After a difficult few years marked by high costs, the COVID-19 crisis, and evolving social trends, landlords were optimistic the chancellor's statement might bring some relief—specifically through a long-promised overhaul of the business rates system.

However the chancellor poured cold water on those hopes, leaving the system unreformed and choosing instead to lower headline rates and commit £4.3bn over three years in aid for the retail and hospitality sectors.

While perhaps a positive step, the benefit of that funding pledge has been overshadowed by the effect of a periodic property revaluation, which has caused the rateable value of pubs and restaurants to spike from their pandemic-era lows.

From next April, business taxes are set to increase by 115% for the typical hotel and 76% for a public house, versus just four percent for big grocery chains and seven percent for logistics centres. A major hospitality group, which owns pubs, restaurants and the Premier Inn hotel chain, estimates it will face an additional tax bill of between £40m and £50m as a outcome.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, said: "With the click of a finger, the worth of our business has doubled. That's going to be a significant burden for us."

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

"The cost of a drink is now prohibitively expensive. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler added.

Furthermore, pandemic-related tax discounts are ending, while sector businesses are still absorbing rises in national insurance and the living wage from last year's budget.

"If you tried to design the least helpful 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 consumer organisation.

A number within the Labour party believe this is a battle they could have sidestepped, not least because of the vital role the local pub holds in British culture.

Richard Quigley, the MP for the Isle of Wight West, who also operates a fish and chip shop on the island, argued: "We said for two years to pubs and hospitality businesses that we are going to provide support but then they get affected by this revaluation. We must not see rates being reduced for large multinational companies but increasing for independent businesses."

Some highlight that Keir Starmer himself has historically been a regular at his local, the Pineapple in north London, and often references their significance to neighborhoods. "There's nothing any of us like better than going to the local for a drink, myself included," the PM remarked in February.

Yet pollsters liken antagonising publicans to doing so with NHS workers in terms of popular sentiment.

Joe Twyman, director of the public opinion consultancy Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a cherished status in the British psyche.

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

"The danger for politicians with antagonising pubs is that your opponents will easily be able to accuse you of undermining the core of this country and its heritage, notably in the countryside. And they will be able to produce many emotive examples to prove their point."

'Nothing Personal'

One such instance is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "No Labour MPs" initiative. Lennox says he has handed out stickers to nearly 1,000 premises and is mailing 100 more every day.

His campaign has been backed by a number of prominent figures, such as broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who part-owns a brewpub in north London—although the latter has indicated he will not refuse service to Labour MPs.

"We have long sought support for a years," said Lennox, who is calling for a short-term VAT reduction. "The government is dressing this up as a support measure but that's not what people are experiencing, and that is the thing that has angered so many people."

Some within the hospitality trade believe a campaign banning individual Labour MPs is likely to backfire. "I doubt it's a wise move to ban the precise representatives we should be trying to engage with and speak to," commented Corbett-Collins.

When pressed this week, the Treasury spoke of the package being provided to hospitality. "We're protecting the hospitality industry with the budget's £4.3bn investment. This is in addition to our efforts to ease licensing, maintaining our reduction to alcohol duty on beer from the tap, and capping corporation tax," a spokesperson commented.

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

Monica Fitzgerald
Monica Fitzgerald

A seasoned gaming enthusiast with a passion for sharing winning strategies and insights.