'Entry Denied!': The Government's Clash with Public Houses Forecasts a New Year Problem.
Labour MPs returning to their local areas this weekend might experience a wave of relief as a hectic parliamentary session concludes. However, for those hoping to visit their neighborhood bar for a relaxing drink, holiday spirit could be scarce. In fact, some may discover they are not allowed through the door.
For weeks, venues throughout the nation have been displaying signs that state "Labour MPs Not Welcome" in objection to adjustments in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her autumn financial statement.
This campaign translates to one fewer retreat for many Labour MPs seeking refuge from the harsh truth of their public disapproval. MPs now report regular hostility in everyday places after a challenging first 18 months that has seen the party's ratings fall from around a third to roughly under a fifth.
"It's challenging being the representative of the area you have always lived in," remarked one. "The local pub is where we would go with the kids and just be a ordinary family. But the recent visits we've just ended up being verbally abused by other drinkers. Now I'm not even sure we'll be able to get in."
This sense of dismay is visible in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being barred from one of his regular haunts, the Larderhouse.
"It's the Christmas season," he noted. "But the Larderhouse and other businesses with a 'No Labour MPs' sticker in the window, they are undermining the welcoming atmosphere that local entrepreneurs have helped to nourish." He went on, "Politics must be kept politics off the main street completely, but above all at Christmas."
'Pubs Have a Special Place in the Public Consciousness
After a challenging period marked by high costs, the pandemic, and evolving social trends, publicans were anticipating the budget might bring some assistance—particularly through a much-anticipated revamp of the commercial tax system.
But the chancellor poured cold water on those expectations, leaving the system unreformed and choosing instead to reduce headline rates and commit £4.3bn over three years in funding for the retail and hospitality sectors.
While seemingly a supportive move, the value of that support package has been minimized by the effect of a three-yearly property revaluation, which has caused the valuation of hospitality venues to increase sharply from their Covid-affected lows.
Starting from next April, business taxes are set to jump by more than double for the typical hotel and over three-quarters for a pub, in contrast to just 4% for big grocery chains and seven percent for distribution warehouses. Whitbread, which operates 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, commented: "With the click of a finger, the value 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 punter's pint.
"The cost of a drink is now prohibitively expensive. 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, Covid-era tax discounts are ending, 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 financial plan for pubs and consumers, you would have come close to what was announced," said Ash Corbett-Collins, the chair of Camra, the consumer organisation.
A number within the Labour party feel this is a battle they ought to have avoided, not least because of the vital role the local pub holds in national life.
Richard Quigley, the MP for the Isle of Wight West, who also runs a chip shop on the island, argued: "We said for two years to the sector that we are going to help you out but then they get affected by this new assessment. We can't have taxes being reduced for large multinational companies but up for small restaurants and pubs."
Commentators note that Keir Starmer himself has historically been a regular at his local, the Pineapple in north London, and frequently speaks of their significance to local communities. "There is little we prefer than going to the pub for a drink, myself included," the PM remarked in February.
Yet pollsters liken picking a fight with pub owners to doing so with NHS workers in terms of popular sentiment.
Joe Twyman, co-founder of the polling firm Deltapoll, noted: "In fiction and in fact, pubs have a special place in the public imagination.
"For many people the local pub is regarded as an key pillar of the locality, even if a good proportion of those same people will seldom drink there.
"The political risk with making an enemy of pubs is that your critics will quickly accuse you of assaulting the foundation of this country and its traditions, particularly in the countryside. And they will be able to produce many emotive examples to make their case."
'A Matter of Principle'
One such example is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "No Labour MPs" initiative. Lennox states he has handed out signs to nearly 1,000 premises and is dispatching 100 more every day.
His protest has been backed by several well-known figures, such as television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a brewpub in north London—however the latter has clarified he will not actually ban Labour MPs.
"We have been asking for relief for a considerable period," explained Lennox, who is calling for a temporary VAT reduction. "Ministers is presenting this as a helpful policy but that's not what people are feeling, and that is the thing that has angered so many people."
A number within the industry think a campaign singling out individual Labour MPs is likely to backfire. "I doubt it's a effective strategy to ban the precise representatives we should be trying to invite in and speak to," said Corbett-Collins.
When questioned this week, the Treasury pointed to the assistance being provided to the sector. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn investment. This comes on top of our initiatives to simplify licensing, keeping our reduction to alcohol duty on draught pints, and capping corporation tax," a spokesperson said.
The publicans, on the other hand, are in little mood to back down, even if losing MPs