'Entry Denied!': The Government's Dispute with Pubs Forecasts a Upcoming Year Problem.

Government ministers visiting their constituencies this weekend might feel a sense of relief as a hectic parliamentary session wraps up. Yet, for those looking to frequent their neighborhood bar for a relaxing pint, holiday spirit could be scarce. Indeed, some may realize they are not allowed through the door.

In recent weeks, businesses throughout the nation have been putting up signs that declare "No Labour MPs" in protest to changes in business rates revealed by the Finance Minister, Rachel Reeves, in her autumn budget.

This protest means one fewer retreat for many Labour MPs seeking solace from the difficult situation of their slumping poll ratings. Backbenchers now report frequent animosity in public spaces after a rocky first year and a half that has seen the approval numbers plummet from around a third to roughly under a fifth.

"It's challenging being the representative of the area 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 be served."

This feeling of frustration is evident in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being barred from one of his local pubs, the Larderhouse.

"We're in the festive period," he stated. "However the Larderhouse and other businesses with a 'MPs Not Welcome' sticker in the window, they are undermining the welcoming atmosphere that business owners have helped to nourish." He went on, "We need to remove politics off the high street altogether, but particularly at Christmas."

A Cherished Institution in the British Psyche

After a challenging period marked by economic pressures, the COVID-19 crisis, and changing habits, licensees were optimistic the chancellor's statement might bring some support—specifically through a much-anticipated overhaul of the commercial tax system.

However the chancellor dashed those expectations, keeping the system unreformed and opting rather to lower headline rates and allocate £4.3bn over three years in financial support for the shops, pubs, and restaurants sectors.

While seemingly a gesture of goodwill, the benefit of that funding pledge has been minimized by the effect of a three-yearly property reassessment, which has caused the taxable value of pubs and restaurants to surge from their pandemic-era lows.

Starting from next April, rates are set to increase by more than double for the typical hotel and over three-quarters for a public house, in contrast to just 4% for big grocery chains and 7% for distribution warehouses. A major hospitality group, which operates multiple brands, says it will face an extra tax bill of between £40m and £50m as a consequence.

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

This burden on business owners is directly passed on to the price of a punter's pint.

"The price of a pint is now prohibitively expensive. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler said.

Furthermore, Covid-era tax reliefs are falling away, while sector businesses are still coping with increases in employer contributions and the minimum wage from last year's budget.

"To create the worst possible financial plan for pubs and consumers, you couldn't have done much worse than what we saw," said Ash Corbett-Collins, the chair of Camra, the campaign for real ale.

Several within the Labour party believe this is a fight they ought to have avoided, not least because of the vital place the community pub 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, commented: "We said for two years to the sector that we are going to help you out but then they get slapped with this new assessment. We can't have taxes going down for large multinational companies but increasing for independent businesses."

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

However pollsters liken antagonising pub owners to challenging NHS workers in terms of popular sentiment.

Joe Twyman, director of the polling firm Deltapoll, said: "From soap operas to real life, pubs have a special place in the British psyche.

"In the public's view the local pub is perceived to be an integral component of the locality, even if a large segment of those same people will infrequently drink there.

"The danger for politicians with alienating pubs is that your political rivals will quickly accuse you of undermining the very heart of this nation and its history, especially in the countryside. And they will be able to produce many heartfelt examples to make their case."

'Nothing Personal'

One such case is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "No Labour MPs" initiative. Lennox says he has provided notices to nearly 1,000 establishments and is sending out 100 more every day.

His action has been backed by several prominent figures, such as 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—although the latter has indicated he will not refuse service to Labour MPs.

"We have long sought help for a very long time," said Lennox, who is calling for a temporary VAT reduction. "Ministers is dressing this up as a relief package but that's not what people are seeing, and that is the thing that has angered so many people."

A number within the industry believe a protest banning individual Labour MPs is likely to have unintended consequences. "It's questionable it's a good idea to ban the exact people we should be trying to invite in and speak to," commented Corbett-Collins.

When questioned this week, the Exchequer spoke of the assistance being offered to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn funding. This follows our work to simplify licensing, maintaining our cut to alcohol duty on draught pints, and capping corporation tax," a spokesperson said.

The business owners, however, are in not the frame of mind to back down, even if losing MPs

Nicholas Marsh
Nicholas Marsh

A tech enthusiast and business analyst passionate about sharing insights on innovation and digital transformation.