'You're Barred!': The Government's Dispute with Pubs Forecasts a Fresh Year Problem.

Government ministers returning to their constituencies this weekend might experience a wave of relief as a hectic political term wraps up. However, for those hoping to visit their neighborhood bar for a restorative beer, festive cheer could be lacking. In fact, some may discover they are barred from entry.

For weeks, businesses throughout the nation have been putting up signs that declare "Labour MPs Not Welcome" in protest to adjustments in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her latest financial statement.

This campaign results in one fewer retreat for many government backbenchers seeking solace from the bruising reality of their slumping poll ratings. MPs now describe frequent antagonism in everyday places after a challenging first year and a half that has seen the approval numbers plummet from around 34% to roughly under a fifth.

"It can be hard being the MP of the constituency you have always lived in," remarked one. "The local pub is where we went with the kids and just be a regular family. But the past occasions we've just ended up being shouted at by other customers. Now I'm not even sure we'll be able to enter."

This feeling of frustration is evident in a recent video by Tom Hayes, the Labour MP for Bournemouth East, lamenting being refused entry to one of his regular haunts, the Larderhouse.

"It's meant to be a time of joy," he stated. "However the Larderhouse and other establishments with a 'No Labour MPs' sign in the window, they are undermining the community spirit that local entrepreneurs have helped to nourish." He added, "We need to remove politics off the town centre altogether, but above all at Christmas."

A Cherished Institution in the National Identity

After a challenging period marked by rising expenses, the COVID-19 crisis, and changing habits, landlords were anticipating the budget might bring some assistance—specifically through a much-anticipated revamp of the commercial tax system.

But the chancellor disappointed those hopes, keeping the system unreformed and choosing instead to reduce the multiplier and commit £4.3bn over three years in aid for the retail and hospitality sectors.

While perhaps a gesture of goodwill, the benefit of that support package has been overshadowed by the effect of a three-yearly property reassessment, which has caused the rateable value of pubs and restaurants to spike from their pandemic-era lows.

From next April, business taxes are set to rise by more than double for the typical hotel and 76% for a public house, compared with just 4% for big grocery chains and seven percent for distribution warehouses. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, 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, said: "Virtually instantly, the worth of our business has doubled. That's going to be a huge increase for us."

This pressure on publicans is inevitably felt in the price of a customer's pint.

"The price of a pint is now unaffordable. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler added.

Furthermore, pandemic-related tax discounts are ending, while sector businesses are still managing increases in national insurance and the living wage from last year's budget.

"To create the worst possible financial plan for the hospitality sector and its customers, you couldn't have done much worse than what was announced," remarked Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

Many within the Labour party think this is a battle they ought to have avoided, not least because of the important role the community pub plays in British culture.

Richard Quigley, the MP for the Isle of Wight West, who also runs a chip shop on the island, said: "We pledged for two years to the sector that we are going to help you out but then they get affected by this revaluation. We must not see taxes being reduced for large multinational companies but up for local venues."

Commentators highlight that Keir Starmer himself has often been a frequent patron at his local pub, the Pineapple in north London, and frequently speaks of their value to neighborhoods. "There is little we prefer than going to the pub for a pint, myself included," the PM said in February.

However political analysts liken picking a fight with pub owners to taking on NHS workers in terms of public perception.

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

"In the public's view the local pub is perceived to be an important part of the community, even if a good proportion of those same people will rarely actually drink there.

"The hazard with antagonising pubs is that your critics will easily be able to accuse you of assaulting the core of this nation and its heritage, especially in the countryside. And they will be able to produce many powerful examples to drive the message home."

'Nothing Personal'

One such example is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" initiative. Lennox reports he has distributed signs to nearly 1,000 establishments and is sending out 100 more every day.

His campaign has gained the endorsement of a number of prominent figures, including television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a bar in north London—though the latter has clarified he will not formally bar Labour MPs.

"We have pleaded for support for a very long time," said Lennox, who is calling for a short-term 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 frustrated so many people."

Several within the hospitality trade believe a protest singling out individual Labour MPs is likely to backfire. "I doubt it's a effective strategy to ban the very individuals we should be trying to invite in and speak to," argued Corbett-Collins.

When questioned this week, the government department spoke of the assistance being provided to the sector. "We're protecting the hospitality industry with the budget's £4.3bn funding. This comes on top of our work to ease licensing, keeping our reduction to alcohol duty on draught pints, and capping corporation tax," a representative commented.

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

Jacob Schwartz
Jacob Schwartz

A tech enthusiast and business strategist with over a decade of experience in digital transformation and startup consulting.