'Entry Denied!': The Government's Battle with Pubs Signals a Fresh Year Problem.

Elected representatives visiting their constituencies this weekend might feel a sense of respite as a hectic parliamentary session ends. But, for those hoping to visit their local pub for a relaxing beer, goodwill could be scarce. Indeed, some may discover they are unwelcome inside.

In recent weeks, businesses across the country have been posting signs that proclaim "Labour MPs Not Welcome" in objection to changes in business rates unveiled by the Finance Minister, Rachel Reeves, in her latest financial statement.

This protest translates to one fewer haven for many government backbenchers seeking refuge from the difficult situation of their party's unpopularity. Backbenchers now describe frequent animosity in community settings after a challenging first period that has seen the approval numbers plummet from around a third to roughly 18%.

"It is difficult being the representative of the area you have forever lived in," commented one. "The local pub is where we went with the kids and just be a regular family. But the recent visits we've just ended up being shouted at by other drinkers. Now I'm not even sure we'll be able to be served."

This palpable disappointment is clear in a social media post by Tom Hayes, the Labour MP for Bournemouth East, lamenting being banned from one of his regular haunts, the Larderhouse.

"It's meant to be a time of joy," he said. "Yet the Larderhouse and other businesses with a 'No Labour MPs' sticker in the window, they are damaging the inclusive culture that publicans have helped to foster." He went on, "We have to get politics off the town centre altogether, but above all at Christmas."

A Cherished Institution in the Public Consciousness

After a challenging period marked by economic pressures, the pandemic, and evolving social trends, licensees were hopeful the budget might bring some assistance—specifically through a overdue revamp of the business rates system.

However the chancellor dashed those hopes, leaving the system largely unchanged and choosing instead to lower the multiplier and commit £4.3bn over three years in aid for the shops, pubs, and restaurants sectors.

While perhaps a supportive move, the impact of that funding pledge has been dwarfed by the effect of a three-yearly property revaluation, which has caused the taxable value of pubs and restaurants to increase sharply from their pandemic-era lows.

Beginning in next April, rates are set to jump by 115% for the typical hotel and 76% for a pub, compared with just four percent for large supermarkets and seven percent for logistics centres. A major hospitality group, which owns multiple brands, says 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: "Literally overnight, the value of our business has increased twofold. That's going to be a massive rise for us."

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

"A pint of beer is now too high. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler stated.

Simultaneously, pandemic-related tax breaks are ending, while sector businesses are still managing rises in employer contributions and the minimum wage from last year's budget.

"If you tried to design the worst possible budget for the hospitality sector and its customers, you couldn't have done much worse than what was announced," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Several within the Labour party believe this is a confrontation they could have sidestepped, not least because of the vital role the community pub 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, said: "We said for two years to the sector that we are going to help you out but then they get slapped with this revaluation. We cannot allow taxes being reduced for large multinational companies but increasing for small restaurants and pubs."

Commentators note that Keir Starmer himself has historically been a regular at his local pub, the Pineapple in north London, and often references their significance to neighborhoods. "There's nothing any of us like better than going to the local for a drink, myself included," the prime minister stated in February.

However pollsters compare confronting publicans to challenging 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 unique position in the British psyche.

"To a lot of individuals the local pub is seen as an key pillar of the community, even if a significant number of those same people will rarely actually drink there.

"The hazard with alienating pubs is that your political rivals will readily accuse you of assaulting the foundation of this country and its heritage, notably in rural areas. And they will be able to produce many powerful examples to prove their point."

'Not a Personal Vendetta'

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

His protest has received support from a number of well-known figures, including broadcaster Jeremy Clarkson, who owns a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—however the latter has said he will not actually ban Labour MPs.

"We have long sought help for a years," stated Lennox, who is advocating for a short-term VAT reduction. "The Treasury is presenting this as a support measure but that's not what people are feeling, and that is the thing that has frustrated so many people."

A number within the industry feel a protest banning individual politicians is likely to be counterproductive. "It's questionable it's a good idea to ban the very individuals we should be trying to persuade and lobby," commented Corbett-Collins.

When pressed this week, the Treasury spoke of the assistance being made available to the sector. "We have aided pubs, restaurants and cafes with the budget's £4.3bn support package. This comes on top of our efforts to simplify licensing, maintaining our reduction to alcohol duty on beer from the tap, and capping corporation tax," a representative said.

The publicans, nevertheless, are in no mood to back down, even if losing MPs

Jonathan Miles
Jonathan Miles

A seasoned journalist with a passion for uncovering stories at the intersection of technology and society.