'Not Welcome!': The Government's Battle with Pubs Forecasts a Upcoming Year Problem.
Government ministers heading back to their home districts this weekend might breathe a sigh of respite as a hectic parliamentary session concludes. However, for those hoping to visit their local pub for a restorative drink, festive cheer could be scarce. In fact, some may discover they are unwelcome inside.
In recent weeks, businesses throughout the nation have been displaying signs that state "Labour MPs Not Welcome" in objection to adjustments in commercial property taxes unveiled by the Chancellor, Rachel Reeves, in her most recent financial statement.
This protest results in one fewer retreat for many government backbenchers seeking refuge from the bruising reality of their public disapproval. Backbenchers now report frequent antagonism in everyday places after a difficult first year and a half that has seen the government's support drop sharply from around 34% to roughly 18%.
"It's challenging being the MP of the constituency you have always lived in," remarked one. "Our neighborhood bar is where we went with the kids and just be a regular family. But the last few times 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 palpable disappointment is clear in a recent video by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being banned from one of his regular haunts, the Larderhouse.
"It's the Christmas season," he noted. "However the Larderhouse and other businesses with a 'MPs Not Welcome' sticker in the window, they are eroding the community spirit that publicans have helped to cultivate." He continued, "We have to get politics off the high street full stop, but especially at Christmas."
A Cherished Institution in the Public Consciousness
After a challenging period marked by high costs, the pandemic, and evolving social trends, licensees were anticipating the budget might bring some relief—particularly through a much-anticipated overhaul of the commercial tax system.
But the chancellor poured cold water on those expectations, leaving the system unreformed and choosing instead to lower headline rates and allocate £4.3bn over three years in funding for the shops, pubs, and restaurants sectors.
While perhaps a supportive move, the value of that support package has been overshadowed by the effect of a periodic property revaluation, which has caused the rateable value of hospitality venues to increase sharply from their Covid-affected lows.
From next April, rates are set to increase by 115% for the average hotel and over three-quarters for a pub, compared with just four percent for large supermarkets and 7% for distribution warehouses. Whitbread, 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 outcome.
Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "With the click of a finger, the worth of our business has doubled. That's going to be a massive rise for us."
This pressure on publicans is inevitably passed on to the price of a customer's pint.
"The cost of a drink is now unaffordable. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler stated.
Simultaneously, Covid-era tax breaks are being phased out, while sector businesses are still managing increases in national insurance and the minimum wage from the previous budget.
"If you wanted to write the least helpful financial plan for the hospitality sector and its customers, you wouldn't have got far away from what was announced," said Ash Corbett-Collins, the chair of Camra, the consumer organisation.
A number within the governing party feel this is a confrontation they should not have picked, not least because of the important role the local pub plays in national life.
Richard Quigley, the MP for the Isle of Wight West, who also operates a chip shop on the island, commented: "We pledged for two years to pubs and hospitality businesses that we are going to help you out but then they get slapped with this new assessment. We can't have rates going down for big corporations but increasing for small restaurants and pubs."
Some 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 significance to neighborhoods. "There is little we prefer than going to the local for a drink, myself included," the prime minister remarked in February.
Yet pollsters compare picking a fight with publicans 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 unique position in the national consciousness.
"To a lot of individuals the local pub is perceived to be an key pillar of the locality, even if a good proportion of those same people will seldom drink there.
"The hazard with antagonising pubs is that your political rivals will easily be able to accuse you of assaulting the very heart of this nation and its traditions, particularly in rural areas. And they will be able to produce many powerful examples to make their case."
'Not a Personal Vendetta'
One such case is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" campaign. Lennox reports he has handed out notices to nearly 1,000 venues and is mailing 100 more every day.
His action has been backed by several prominent figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a brewpub in north London—though the latter has said he will not formally bar Labour MPs.
"We have pleaded for relief for a very long time," stated Lennox, who is advocating 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 aggrieved so many people."
A number within the hospitality trade feel a campaign banning individual Labour MPs is likely to have unintended consequences. "I'm not sure it's a effective strategy to ban the precise representatives we should be trying to invite in and influence," argued Corbett-Collins.
When questioned this week, the Exchequer pointed to the support being offered to hospitality. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn investment. This is in addition to our initiatives to simplify licensing, keeping our cut to alcohol duty on beer from the tap, and capping corporation tax," a spokesperson said.
The landlords, however, are in not the frame of mind to back down, even if alienating MPs