'Entry Denied!': Labour's Dispute with Public Houses Signals a Fresh Year Problem.

Government ministers returning to their home districts this end of the week might breathe a sigh of relief as a hectic parliamentary session wraps up. However, for those planning to frequent their neighborhood bar for a restorative drink, goodwill could be lacking. In fact, some may realize they are barred from entry.

In recent weeks, establishments nationwide have been putting up signs that state "No Labour MPs" in objection to changes in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her most recent budget.

This campaign results in one fewer haven for many Labour MPs seeking refuge from the difficult situation of their slumping poll ratings. Representatives now describe regular animosity in everyday places after a difficult first period that has seen the government's support plummet from around 34% to roughly 18%.

"It is difficult being the representative of the constituency you have forever lived in," said one. "Our neighborhood bar is where we would go with the kids and just be a regular family. But the past occasions we've just ended up being confronted by other drinkers. Now I'm not even sure we'll be able to enter."

This feeling of frustration is clear in a recent video by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being refused entry to one of his local pubs, the Larderhouse.

"We're in the festive period," he said. "Yet the Larderhouse and other businesses with a 'MPs Not Welcome' notice in the window, they are eroding the welcoming atmosphere that publicans have helped to cultivate." He continued, "We have to get politics off the high street full stop, but particularly at Christmas."

A Cornerstone in the Public Consciousness

After a difficult few years marked by rising expenses, the pandemic, and changing habits, landlords were hopeful the budget might bring some support—specifically through a much-anticipated revamp of the business rates system.

But the chancellor poured cold water on those expectations, keeping the system largely unchanged and opting rather to reduce headline rates and allocate £4.3bn over three years in funding for the retail and hospitality sectors.

While seemingly a gesture of goodwill, the impact of that funding pledge has been overshadowed by the effect of a three-yearly property reassessment, which has caused the rateable value of hospitality venues to spike 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 pub, compared with just 4% for big grocery chains and seven percent for logistics centres. Whitbread, which owns multiple brands, states it will face an extra tax bill of between £40m and £50m as a result.

Joe Butler, the publican at the Tollemache Arms in Northamptonshire, commented: "Literally overnight, the worth of our business has doubled. That's going to be a huge increase for us."

This pressure on publicans is inevitably passed on to the price of a customer's pint.

"The price of a pint is now prohibitively expensive. 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.

At the same time, Covid-era tax reliefs are being phased out, while sector businesses are still managing increases in national insurance and the minimum wage from last year's budget.

"If you wanted to write the worst possible budget for the hospitality sector and its customers, you wouldn't have got far away from what was announced," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Several within the Labour party believe this is a fight they should not have picked, not least because of the important place the neighborhood inn plays in society.

Richard Quigley, the MP for the Isle of Wight West, who also operates a fish and chip shop on the island, commented: "We promised for two years to pubs and hospitality businesses that we are going to help you out but then they get hit by this revaluation. We cannot allow taxes going down for large multinational companies but up for small restaurants and pubs."

Commentators note that Keir Starmer himself has historically 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 pub for a pint, myself included," the prime minister stated in February.

However strategists compare confronting pub owners to taking on NHS workers in terms of popular sentiment.

Joe Twyman, director of the polling firm Deltapoll, noted: "From the Queen Vic to the Rovers Return, pubs have a unique position in the British psyche.

"In the public's view the neighborhood inn is seen as an important part of the community, even if a significant number of those same people will rarely actually drink there.

"The political risk with antagonising pubs is that your political rivals will quickly accuse you of assaulting the core of this country and its traditions, particularly in the countryside. And they will be able to produce many emotive examples to drive the message home."

'Nothing Personal'

One such instance is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" campaign. Lennox says he has provided notices to nearly 1,000 establishments and is mailing 100 more every day.

His action has been backed by several well-known figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who part-owns a brewpub in north London—however the latter has indicated he will not actually ban Labour MPs.

"We have pleaded for help for a years," said Lennox, who is demanding a short-term VAT reduction. "The Treasury is spinning this as a helpful policy but that's not what people are seeing, and that is the thing that has angered so many people."

Several within the industry think a protest singling out individual Labour MPs is may have unintended consequences. "It's questionable it's a good idea to ban the exact people we should be trying to persuade and influence," commented Corbett-Collins.

When questioned this week, the Exchequer spoke of the support being offered to the sector. "We are supporting the hospitality industry with the budget's £4.3bn support package. This follows our efforts to ease licensing, maintaining our cut to alcohol duty on beer from the tap, and capping corporation tax," a representative stated.

The publicans, however, are in no mood to back down, even if turning away MPs

Patricia Austin
Patricia Austin

Tech enthusiast and writer with a passion for demystifying complex innovations and sharing actionable insights.