'You're Barred!': The Government's Dispute with Public Houses Signals a New Year Headache.

Elected representatives heading back to their constituencies this end of the week might experience a wave of relief as a chaotic political term ends. But, for those looking to stop by their local pub for a restorative drink, holiday spirit could be in short supply. In fact, some may discover they are unwelcome inside.

For weeks, venues across the country have been displaying signs that state "No Labour MPs" in demonstration to revisions in commercial property taxes unveiled by the Finance Minister, Rachel Reeves, in her most recent budget.

This movement translates to one fewer haven for many elected officials seeking refuge from the bruising reality of their public disapproval. MPs now report commonplace animosity in community settings after a challenging first 18 months that has seen the party's ratings fall from around 34% to roughly under a fifth.

"It's challenging being the MP of the constituency you have forever lived in," said one. "The local pub is where we would go with the kids and just be a ordinary family. But the last few times we've just ended up being confronted by other patrons. Now I'm not even sure we'll be able to get in."

This palpable disappointment is visible in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being banned from one of his regular haunts, the Larderhouse.

"It's the Christmas season," he stated. "But the Larderhouse and other businesses with a 'No Labour MPs' notice in the window, they are eroding the welcoming atmosphere that business owners have helped to foster." He continued, "Politics must be kept politics off the main street altogether, but particularly at Christmas."

'Pubs Have a Special Place in the British Psyche

After a challenging period marked by economic pressures, the COVID-19 crisis, and changing habits, licensees were anticipating the chancellor's statement might bring some support—namely through a overdue revamp of the business rates system.

However the chancellor poured cold water on those hopes, leaving the system largely unchanged and opting rather to lower headline rates and allocate £4.3bn over three years in financial support for the retail and hospitality sectors.

While perhaps a supportive move, the benefit of that support package has been overshadowed by the effect of a three-yearly property reassessment, which has caused the valuation of hospitality venues to increase sharply from their pandemic-era lows.

From next April, rates are set to jump by 115% for the typical hotel and 76% for a public house, compared with just four percent for large supermarkets and 7% for distribution warehouses. Whitbread, 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, said: "Literally overnight, the valuation of our business has doubled. That's going to be a huge increase for us."

This burden on publicans is directly passed on to the price of a customer's pint.

"A pint of beer is now too high. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler said.

At the same time, Covid-era tax reliefs are being phased out, while sector businesses are still coping with rises in national insurance and the minimum wage from the previous budget.

"To create the most damaging budget for pubs and consumers, you wouldn't have got far away from what came out," remarked Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

A number within the Labour party believe this is a fight they ought to have avoided, not least because of the vital place the local pub plays in British culture.

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

Some note that Keir Starmer himself has often been a regular at his local, the Pineapple in north London, and often references their importance to local communities. "We all enjoy nothing more than going to the pub for a pint, myself included," the PM remarked in February.

Yet pollsters liken confronting publicans to taking on NHS workers in terms of popular sentiment.

Joe Twyman, director of the polling firm Deltapoll, explained: "From soap operas to real life, pubs have a cherished status in the public imagination.

"In the public's view the neighborhood inn is seen as an key pillar of the community, even if a good proportion of those same people will seldom drink there.

"The hazard with making an enemy of pubs is that your critics will readily accuse you of undermining the core of this country and its traditions, particularly in the countryside. And they will be able to produce many powerful examples to make their case."

'Nothing Personal'

One such case is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "MPs Barred" initiative. Lennox states he has provided notices to nearly 1,000 premises and is mailing 100 more every day.

His campaign has gained the endorsement of several high-profile figures, including television presenter Jeremy Clarkson, who runs 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 said he will not refuse service to Labour MPs.

"We have pleaded for support for a years," stated Lennox, who is advocating for a short-term VAT reduction. "Ministers is presenting this as a helpful policy but that's not what people are feeling, and that is the thing that has angered so many people."

Several within the sector believe a campaign singling out individual Labour MPs is may backfire. "I doubt it's a wise move to ban the exact people we should be trying to engage with and influence," argued Corbett-Collins.

When asked this week, the government department pointed to the assistance being offered to the sector. "We're protecting the hospitality industry with the budget's £4.3bn funding. This follows our work to simplify licensing, maintaining our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a representative stated.

The publicans, on the other hand, are in little mood to back down, even if turning away MPs

Carolyn Hickman
Carolyn Hickman

Tech enthusiast and digital strategist with a passion for exploring emerging technologies and their impact on business and society.