'Entry Denied!': Labour's Battle with Pubs Signals a Upcoming Year Problem.

Government ministers returning to their home districts this end of the week might feel a sense of respite as a turbulent parliamentary session concludes. Yet, for those planning to stop by their local pub for a relaxing beer, goodwill could be scarce. Indeed, some may discover they are barred from entry.

Over the past few weeks, establishments throughout the nation have been putting up signs that proclaim "MPs Barred" in objection to changes in commercial property taxes unveiled by the Finance Minister, Rachel Reeves, in her latest financial statement.

This campaign means one fewer escape for many elected officials seeking refuge from the difficult situation of their public disapproval. Backbenchers now describe regular antagonism in everyday places after a difficult first period that has seen the approval numbers fall from around 34% to roughly 18%.

"It is difficult being the MP of the area you have forever lived in," said one. "Our neighborhood bar is where we went with the kids and just be a ordinary family. But the last few times we've just ended up being confronted by other drinkers. Now I'm not even sure we'll be able to get in."

This feeling of frustration is evident in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being refused entry to one of his regular haunts, the Larderhouse.

"It's the Christmas season," he noted. "However the Larderhouse and other businesses with a 'No Labour MPs' sign in the window, they are undermining the community spirit that publicans have helped to cultivate." He continued, "We need to remove politics off the high street completely, but particularly at Christmas."

A Cornerstone in the Public Consciousness

After a tough times marked by rising expenses, the COVID-19 crisis, and changing habits, publicans were anticipating the budget might bring some support—particularly through a long-promised revamp of the business rates system.

Yet the chancellor poured cold water on those expectations, keeping the system largely unchanged and opting rather to reduce headline rates and commit £4.3bn over three years in financial support for the shops, pubs, and restaurants sectors.

While perhaps a positive step, the benefit of that support package has been dwarfed by the effect of a periodic property revaluation, which has caused the valuation of hospitality venues to spike from their Covid-affected lows.

Starting from next April, rates are set to increase by 115% for the typical hotel and over three-quarters for a public house, compared with just 4% for large supermarkets and seven percent for distribution warehouses. A major hospitality group, which owns pubs, restaurants and the Premier Inn hotel chain, 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, commented: "Virtually instantly, the valuation of our business has doubled. That's going to be a huge increase for us."

This burden on publicans is inevitably 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 approaching £7 a pint," Butler added.

At the same time, pandemic-related tax reliefs are being phased out, while hospitality operators are still managing increases in national insurance and the living wage from the previous budget.

"To create the worst possible budget 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.

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

Richard Quigley, the MP for the Isle of Wight West, who also runs a fish and chip shop on the island, argued: "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 can't have taxes being reduced for large multinational companies but up for local venues."

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

Yet strategists liken antagonising pub owners to challenging NHS workers in terms of public perception.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, said: "In fiction and in fact, pubs have a special place in the national consciousness.

"For many people the local pub is perceived to be an important part of the locality, even if a good proportion of those same people will rarely actually drink there.

"The hazard with making an enemy of pubs is that your opponents will readily accuse you of assaulting the foundation of this nation and its history, particularly in the countryside. And they will be able to produce many powerful examples to make their case."

'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 distributed notices to nearly 1,000 venues and is dispatching 100 more every day.

His campaign has been backed by a number of prominent figures, including 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—though the latter has indicated he will not refuse service to Labour MPs.

"We have pleaded for relief for a considerable period," said Lennox, who is calling for a temporary VAT reduction. "The Treasury is presenting this as a relief package but that's not what people are feeling, and that is the thing that has angered so many people."

Some within the industry feel a protest banning individual Labour MPs is may have unintended consequences. "It's questionable it's a wise move to ban the exact people we should be trying to persuade and speak to," said Corbett-Collins.

When pressed this week, the Exchequer spoke of the package being made available to the sector. "We're protecting the hospitality industry with the budget's £4.3bn funding. This follows our work to ease licensing, keeping our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a spokesperson commented.

The landlords, nevertheless, are in not the frame of mind to yield, even if alienating MPs

Jessica Luna
Jessica Luna

Environmental scientist and sustainability advocate passionate about reducing carbon footprints.