'Entry Denied!': The Government's Dispute with Pubs Forecasts a Fresh Year Challenge.
Government ministers heading back to their local areas this weekend might experience a wave of relief as a hectic parliamentary session ends. Yet, for those looking to stop by their community tavern for a casual pint, holiday spirit could be in short supply. In fact, some may find they are unwelcome inside.
For weeks, venues throughout the nation have been displaying signs that state "MPs Barred" in objection to changes in commercial property taxes announced by the Chancellor, Rachel Reeves, in her most recent financial statement.
This campaign results in one fewer escape for many Labour MPs seeking refuge from the harsh truth of their party's unpopularity. MPs now say regular animosity in public spaces after a rocky first 18 months that has seen the approval numbers fall from around a third to roughly under a fifth.
"It is difficult being the MP of the constituency you have always lived in," commented one. "Our neighborhood bar is where we used to go with the kids and just be a regular family. But the last few times we've just ended up being verbally abused by other drinkers. Now I'm not even sure we'll be able to be served."
This feeling of frustration is visible in a online clip by Tom Hayes, the Labour MP for Bournemouth East, addressing being banned from one of his regular haunts, the Larderhouse.
"It's meant to be a time of joy," he noted. "Yet the Larderhouse and other establishments with a 'No Labour MPs' notice in the window, they are damaging the community spirit that local entrepreneurs have helped to nourish." He continued, "We have to get politics off the main street completely, but especially at Christmas."
A Cornerstone in the British Psyche
After a tough times marked by rising expenses, the pandemic, and changing habits, landlords were optimistic the chancellor's statement might bring some assistance—namely through a much-anticipated revamp of the business rates system.
Yet the chancellor poured cold water on those hopes, keeping the system unreformed and choosing instead to lower the multiplier and allocate £4.3bn over three years in funding for the retail and hospitality sectors.
While seemingly a supportive move, the benefit of that funding pledge has been overshadowed by the effect of a three-yearly property revaluation, which has caused the taxable value of hospitality venues to increase sharply from their Covid-affected lows.
Beginning in next April, business taxes are set to increase by 115% for the average hotel and 76% for a public house, in contrast to just 4% for big grocery chains and seven percent for logistics centres. A major hospitality group, 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 result.
Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "Virtually instantly, the valuation of our business has increased twofold. That's going to be a significant burden for us."
This pressure on publicans is directly felt in the price of a customer's pint.
"A pint of beer is now too high. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler said.
Furthermore, Covid-era tax breaks are falling away, while hospitality operators are still managing increases in national insurance and the minimum wage from the previous budget.
"To create the least helpful financial plan for pubs and consumers, you wouldn't have got far away from what came out," remarked Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.
Several within the Labour party think this is a confrontation they ought to have avoided, not least because of the vital role the neighborhood inn holds in national life.
Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a fish and chip shop on the island, said: "We pledged for two years to pubs and hospitality businesses that we are going to provide support but then they get slapped with this new assessment. We can't have taxes being reduced for large multinational companies but increasing for independent businesses."
Some point out that Keir Starmer himself has often been a regular at his local, the Pineapple in north London, and regularly mentions their importance to neighborhoods. "There is little we prefer than going to the local for a drink, myself included," the PM remarked in February.
But strategists compare picking a fight with publicans to taking on NHS workers in terms of public perception.
Joe Twyman, director of the polling firm Deltapoll, noted: "From soap operas to real life, pubs have a cherished status in the national consciousness.
"To a lot of individuals the local pub is perceived to be an important part of the locality, even if a significant number of those same people will seldom drink there.
"The hazard with alienating pubs is that your critics will readily accuse you of undermining the foundation of this nation and its traditions, particularly in rural areas. And they will be able to produce many emotive examples to make their case."
'A Matter of Principle'
One such case is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "No Labour MPs" campaign. Lennox reports he has handed out stickers to nearly 1,000 establishments and is mailing 100 more every day.
His action has been backed by a number of high-profile figures, such as television presenter Jeremy Clarkson, who owns 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 indicated he will not refuse service to Labour MPs.
"We have been asking for support for a years," said Lennox, who is calling for a temporary VAT reduction. "The government is dressing this up as a relief package but that's not what people are seeing, and that is the thing that has aggrieved so many people."
A number within the sector believe a campaign singling out individual politicians is likely to be counterproductive. "It's questionable it's a good idea to ban the exact people we should be trying to engage with and lobby," argued Corbett-Collins.
When questioned this week, the government department spoke of the support being provided to the sector. "We have aided the hospitality industry with the budget's £4.3bn investment. This follows our work to ease licensing, maintaining our reduction to alcohol duty on draught pints, and capping corporation tax," a representative commented.
The publicans, however, are in little mood to back down, even if turning away MPs