'Not Welcome!': The Government's Dispute with Public Houses Signals a Upcoming Year Headache.

Government ministers visiting their constituencies this end of the week might experience a wave of relief as a turbulent parliamentary session wraps up. However, for those looking to stop by their neighborhood bar for a restorative pint, goodwill could be scarce. In fact, some may find they are barred from entry.

Over the past few weeks, venues throughout the nation have been displaying signs that proclaim "No Labour MPs" in objection to revisions in business rates unveiled by the Chancellor, Rachel Reeves, in her autumn budget.

This movement results in one fewer haven for many Labour MPs seeking solace from the harsh truth of their slumping poll ratings. Backbenchers now report regular animosity in community settings after a difficult first year and a half that has seen the approval numbers plummet from around 34% to roughly 18%.

"It is difficult being the representative of the constituency you have forever lived in," commented one. "Our neighborhood bar is where we would go 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 clear in a social media post by Tom Hayes, the Labour MP for Bournemouth East, discussing being banned from one of his regular haunts, the Larderhouse.

"We're in the festive period," he noted. "However the Larderhouse and other businesses with a 'MPs Not Welcome' sticker in the window, they are undermining the welcoming atmosphere that business owners have helped to foster." He continued, "Politics must be kept politics off the town centre full stop, but especially at Christmas."

A Cornerstone in the British Psyche

After a tough times marked by high costs, the pandemic, and evolving social trends, licensees were optimistic the chancellor's statement might bring some support—particularly through a long-promised reform of the business rates system.

However the chancellor poured cold water on those expectations, leaving the system largely unchanged and choosing instead to reduce the multiplier and commit £4.3bn over three years in aid for the retail and hospitality sectors.

While perhaps a supportive move, the impact of that support package has been overshadowed by the effect of a periodic property revaluation, which has caused the taxable value of hospitality venues to surge from their pandemic-era lows.

Beginning in next April, rates are set to jump by more than double 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 operates multiple brands, 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, commented: "With the click of a finger, the valuation of our business has doubled. That's going to be a significant burden for us."

This burden on business owners is certainly felt in the price of a punter's pint.

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

Simultaneously, Covid-era tax reliefs are ending, while sector businesses are still coping with increases in national insurance and the minimum wage from last year's budget.

"If you tried to design the most damaging financial plan for pubs and consumers, you wouldn't have got far away from what was announced," remarked Ash Corbett-Collins, the chair of Camra, the campaign for real ale.

A number within the governing party think this is a fight they could have sidestepped, not least because of the central place the community pub plays in national life.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a chip shop on the island, argued: "We promised for two years to the sector that we are going to offer relief but then they get hit by this new assessment. We must not see taxes going down for large multinational companies but up for local venues."

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

But political analysts compare confronting publicans to taking on NHS workers in terms of public perception.

Joe Twyman, co-founder of the polling firm Deltapoll, explained: "From the Queen Vic to the Rovers Return, pubs have a special place in the British psyche.

"In the public's view the neighborhood inn is seen as an integral component of the locality, even if a large segment of those same people will infrequently drink there.

"The hazard with making an enemy of pubs is that your political rivals will easily be able to accuse you of undermining the core of this country and its traditions, notably in the countryside. And they will be able to produce many powerful examples to make their case."

'Nothing Personal'

One such instance is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "MPs Barred" campaign. Lennox says he has distributed stickers to nearly 1,000 venues and is dispatching 100 more every day.

His protest has received support from several prominent figures, including television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who part-owns a bar in north London—although the latter has said he will not formally bar Labour MPs.

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

Some within the industry think a campaign targeting individual politicians is may have unintended consequences. "It's questionable it's a effective strategy to ban the very individuals we should be trying to persuade and lobby," commented Corbett-Collins.

When asked this week, the government department highlighted the assistance being made available to hospitality. "We have aided pubs, restaurants and cafes with the budget's £4.3bn support package. This is in addition to our work to simplify licensing, maintaining our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a official said.

The landlords, on the other hand, are in little mood to compromise, even if alienating MPs

Joshua Sanders
Joshua Sanders

A seasoned journalist with a passion for uncovering stories that shape society, based in London.