'Entry Denied!': The Government's Battle with Public Houses Signals a Fresh Year Headache.
Government ministers heading back to their local areas this end of the week might breathe a sigh of respite as a chaotic political term ends. But, for those hoping to frequent their community tavern for a relaxing pint, holiday spirit could be lacking. Indeed, some may find they are unwelcome inside.
In recent weeks, establishments across the country have been displaying signs that proclaim "Labour MPs Not Welcome" in objection to adjustments in business rates announced by the Finance Minister, Rachel Reeves, in her autumn financial statement.
This protest results in one fewer haven for many Labour MPs seeking solace from the bruising reality of their slumping poll ratings. Representatives now describe regular hostility in everyday places after a rocky first 18 months that has seen the party's ratings drop sharply from around a third to roughly 18%.
"It is difficult being the representative of the constituency you have always lived in," said one. "That pub is where we would go with the kids and just be a normal family. But the past occasions 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 visible in a recent video by Tom Hayes, the Labour MP for Bournemouth East, lamenting being barred from one of his regular haunts, the Larderhouse.
"It's meant to be a time of joy," he said. "But the Larderhouse and other businesses with a 'MPs Not Welcome' notice in the window, they are undermining the inclusive culture that local entrepreneurs have helped to cultivate." He continued, "We need to remove politics off the town centre full stop, but above all at Christmas."
A Cherished Institution in the National Identity
After a tough times marked by high costs, the pandemic, and changing habits, landlords were hopeful the chancellor's statement might bring some relief—namely through a overdue reform of the commercial tax system.
Yet the chancellor poured cold water on those expectations, keeping the system largely unchanged and opting rather to reduce the multiplier and allocate £4.3bn over three years in financial support for the retail and hospitality sectors.
While perhaps 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 taxable value of pubs and restaurants to surge from their Covid-affected lows.
Starting from next April, rates are set to jump by 115% for the average hotel and over three-quarters for a public house, versus just four percent for large supermarkets and 7% for distribution warehouses. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, 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 huge increase for us."
This financial strain on publicans is directly reflected in the price of a punter'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 verging on £7 a pint," Butler said.
At the same time, Covid-era tax reliefs are falling away, while sector businesses are still absorbing increases in employer contributions and the minimum wage from the previous budget.
"If you tried to design the most damaging budget for pubs and consumers, you couldn't have done much worse than what came out," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.
Several within the Labour party think this is a battle they should not have picked, not least because of the vital place the community pub holds in British culture.
Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a fish and chip shop on the island, argued: "We said for two years to pubs and hospitality businesses that we are going to offer relief 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."
Some highlight that Keir Starmer himself has long been a frequent patron at his local pub, the Pineapple in north London, and frequently speaks of their significance to neighborhoods. "There's nothing any of us like better than going to the local for a drink, myself included," the PM remarked in February.
However strategists compare picking a fight with publicans to doing so with NHS workers in terms of political risk.
Joe Twyman, director of the polling firm Deltapoll, explained: "From soap operas to real life, pubs have a special place in the national consciousness.
"For many people the local pub is seen as an key pillar of the community, even if a large segment of those same people will rarely actually drink there.
"The danger for politicians with making an enemy of pubs is that your critics will quickly accuse you of assaulting the very heart of this country and its traditions, especially in rural areas. And they will be able to produce many powerful examples to prove their point."
'Nothing Personal'
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 says he has handed out signs to nearly 1,000 premises and is mailing 100 more every day.
His protest has gained the endorsement of several well-known figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who part-owns a bar in north London—although the latter has indicated he will not refuse service to Labour MPs.
"We have been asking for support for a considerable period," explained Lennox, who is advocating for a temporary VAT reduction. "Ministers is dressing this up as a helpful policy but that's not what people are seeing, and that is the thing that has aggrieved so many people."
A number within the sector feel a campaign targeting individual Labour MPs is may be counterproductive. "I'm not sure it's a wise move to ban the precise representatives we should be trying to persuade and speak to," argued Corbett-Collins.
When pressed this week, the government department highlighted the support 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 work to simplify licensing, maintaining our reduction to alcohol duty on draught pints, and capping corporation tax," a spokesperson said.
The landlords, however, are in no mood to yield, even if turning away MPs