'Not Welcome!': The Government's Dispute with Pubs Promises a New Year Problem.

Elected representatives visiting their constituencies this weekend might feel a sense of respite as a chaotic political term ends. But, for those looking to stop by their community tavern for a relaxing pint, goodwill could be in short supply. In fact, some may realize they are unwelcome inside.

Over the past few weeks, businesses throughout the nation have been displaying signs that state "Labour MPs Not Welcome" in demonstration to adjustments in commercial property taxes revealed by the Chancellor, Rachel Reeves, in her latest financial statement.

This movement results in one fewer retreat for many elected officials seeking refuge from the bruising reality of their slumping poll ratings. Backbenchers now report frequent animosity in public spaces after a difficult first 18 months that has seen the approval numbers fall from around 34% to roughly under a fifth.

"It is difficult being the MP of the constituency you have forever lived in," said one. "That pub is where we went with the kids and just be a ordinary family. But the recent visits we've just ended up being verbally abused by other customers. Now I'm not even sure we'll be able to be served."

This feeling of frustration is visible 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 'No Labour MPs' notice in the window, they are undermining the community spirit that local entrepreneurs have helped to cultivate." He went on, "Politics must be kept politics off the main street altogether, but particularly at Christmas."

'Pubs Have a Special Place in the Public Consciousness

After a difficult few years marked by high costs, the COVID-19 crisis, and changing habits, landlords were hopeful the chancellor's statement might bring some assistance—particularly through a long-promised reform of the commercial tax system.

Yet the chancellor dashed those expectations, keeping the system unreformed 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 gesture of goodwill, the impact of that support package has been minimized by the effect of a periodic property revaluation, which has caused the valuation of hospitality venues to spike from their Covid-affected lows.

Beginning in next April, business taxes are set to increase by more than double for the average hotel and 76% for a public house, versus just four percent for large supermarkets and seven percent for distribution warehouses. Whitbread, which owns multiple brands, states it will face an additional tax bill of between £40m and £50m as a consequence.

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

This burden on publicans is inevitably felt in the price of a punter's pint.

"The price of a pint is now unaffordable. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler added.

Furthermore, Covid-era tax breaks are being phased out, while hospitality operators are still absorbing rises in national insurance and the minimum wage from the previous budget.

"If you wanted to write the least helpful budget for pubs and consumers, you couldn't have done much worse than what we saw," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.

A number within the Labour party believe this is a battle they ought to have avoided, not least because of the important place the neighborhood inn holds 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, argued: "We promised for two years to the sector that we are going to help you out but then they get slapped with this new assessment. We cannot allow rates being reduced for large multinational companies but increasing for independent businesses."

Commentators point out that Keir Starmer himself has long been a frequent patron at his local pub, the Pineapple in north London, and often references their value to neighborhoods. "There is little we prefer than going to the pub for a drink, myself included," the PM said in February.

Yet strategists liken antagonising pub owners to challenging NHS workers in terms of popular sentiment.

Joe Twyman, director of the polling firm Deltapoll, noted: "From soap operas to real life, pubs have a unique position in the British psyche.

"To a lot of individuals the neighborhood inn is regarded as an key pillar of the locality, even if a significant number of those same people will seldom drink there.

"The hazard with antagonising pubs is that your opponents will easily be able to accuse you of undermining the foundation of this nation and its traditions, notably in rural areas. And they will be able to produce many heartfelt examples to prove their point."

'A Matter of Principle'

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

His protest has been backed by several high-profile figures, including television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and singer 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 long sought relief for a very long time," explained Lennox, who is advocating for a short-term VAT reduction. "The government is spinning this as a support measure but that's not what people are experiencing, and that is the thing that has angered so many people."

Several within the industry feel a protest banning individual Labour MPs is could backfire. "I doubt it's a good idea to ban the precise representatives we should be trying to engage with and influence," said Corbett-Collins.

When asked this week, the Treasury highlighted the package being provided to hospitality. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our initiatives to simplify licensing, maintaining our reduction to alcohol duty on beer from the tap, and capping corporation tax," a official commented.

The business owners, nevertheless, are in little mood to back down, even if turning away MPs

Douglas Wilson
Douglas Wilson

A seasoned construction engineer with over 15 years of experience, specializing in sustainable building practices and innovative project management.