'Not Welcome!': The Government's Clash with Public Houses Forecasts a New Year Headache.

Elected representatives visiting their constituencies this weekend might experience a wave of respite as a chaotic political term concludes. However, for those planning to frequent their local pub for a restorative beer, goodwill could be in short supply. Actually, some may find they are not allowed through the door.

Over the past few weeks, establishments across the country have been putting up signs that state "No Labour MPs" in protest to revisions in business rates announced by the Chancellor, Rachel Reeves, in her latest budget.

This movement translates to one fewer escape for many Labour MPs seeking refuge from the harsh truth of their party's unpopularity. MPs now describe frequent animosity in everyday places after a rocky first 18 months that has seen the government's support drop sharply from around a third to roughly 18%.

"It is difficult being the MP of the constituency you have always lived in," commented one. "Our neighborhood bar is where we went with the kids and just be a normal 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 get in."

This palpable disappointment is evident in a recent video by Tom Hayes, the Labour MP for Bournemouth East, discussing being refused entry to one of his local pubs, the Larderhouse.

"We're in the festive period," he said. "But the Larderhouse and other businesses with a 'MPs Not Welcome' notice in the window, they are damaging the welcoming atmosphere that local entrepreneurs have helped to foster." He continued, "We need to remove politics off the high street completely, but especially at Christmas."

A Cornerstone in the National Identity

After a challenging period marked by high costs, the COVID-19 crisis, and changing habits, landlords were hopeful the chancellor's statement might bring some assistance—namely through a much-anticipated overhaul of the business rates system.

However the chancellor disappointed those expectations, leaving the system largely unchanged and opting rather to reduce headline rates and pledge £4.3bn over three years in aid 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 periodic property revaluation, which has caused the valuation of pubs and restaurants to increase sharply from their Covid-affected lows.

From next April, rates are set to rise by more than double for the average hotel and 76% for a public house, in contrast to just 4% for big grocery chains and 7% for logistics centres. A major hospitality group, which owns pubs, restaurants and the Premier Inn hotel chain, estimates 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, explained: "With the click of a finger, the value of our business has increased twofold. That's going to be a huge increase for us."

This pressure on publicans is directly felt in the price of a punter'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, pandemic-related tax reliefs are ending, while sector businesses are still coping with rises in national insurance and the living wage from the previous budget.

"If you tried to design the worst possible budget for pubs and consumers, you would have come close to what came out," remarked Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Several within the Labour party think this is a confrontation they should not have picked, not least because of the vital role the local pub plays in national life.

Richard Quigley, the MP for the Isle of Wight West, who also runs a fish and chip shop on the island, commented: "We promised for two years to the sector that we are going to provide support but then they get affected by this revaluation. We cannot allow taxes being reduced for large multinational companies but increasing for small restaurants and pubs."

Observers highlight that Keir Starmer himself has long been a regular at his local pub, the Pineapple in north London, and often references their value to local communities. "We all enjoy nothing more than going to the pub for a drink, myself included," the prime minister stated in February.

Yet pollsters liken picking a fight with pub owners to challenging NHS workers in terms of popular sentiment.

Joe Twyman, co-founder of the polling firm Deltapoll, explained: "In fiction and in fact, pubs have a unique position in the British psyche.

"For many people the neighborhood inn is perceived to be an integral component of the locality, even if a good proportion of those same people will seldom drink there.

"The danger for politicians with making an enemy of pubs is that your critics will readily accuse you of undermining the foundation of this nation and its history, particularly in the countryside. And they will be able to produce many powerful 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 organiser of the "No Labour MPs" initiative. Lennox states he has distributed stickers to nearly 1,000 venues and is mailing 100 more every day.

His action has received support from several prominent figures, such as broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a brewpub in north London—however the latter has said he will not refuse service to Labour MPs.

"We have pleaded for relief for a years," said Lennox, who is demanding a short-term VAT reduction. "The government is presenting this as a support measure but that's not what people are experiencing, and that is the thing that has aggrieved so many people."

A number within the hospitality trade believe a campaign singling out individual Labour MPs is could backfire. "It's questionable it's a effective strategy to ban the very individuals we should be trying to invite in and lobby," argued Corbett-Collins.

When pressed this week, the Exchequer highlighted the assistance being offered to hospitality. "We're protecting the hospitality industry with the budget's £4.3bn investment. This is in addition to our initiatives to simplify licensing, maintaining our cut to alcohol duty on draught pints, and limiting corporation tax," a representative said.

The publicans, however, are in little mood to back down, even if alienating MPs

Kayla Carpenter
Kayla Carpenter

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