'Entry Denied!': The Government's Dispute with Public Houses Forecasts a Fresh Year Headache.

Government ministers returning to their local areas this end of the week might feel a sense of relief as a hectic political term concludes. But, for those hoping to frequent their neighborhood bar for a casual beer, holiday spirit could be scarce. In fact, some may realize they are unwelcome inside.

For weeks, venues across the country have been putting up signs that proclaim "Labour MPs Not Welcome" in protest to revisions in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her latest budget.

This campaign results in one fewer retreat for many Labour MPs seeking refuge from the bruising reality of their slumping poll ratings. Backbenchers now describe frequent animosity in everyday places after a challenging first 18 months that has seen the approval numbers drop sharply from around 34% to roughly under a fifth.

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

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

"We're in the festive period," he said. "But the Larderhouse and other establishments with a 'No Labour MPs' sticker in the window, they are eroding the community spirit that business owners have helped to cultivate." He continued, "Politics must be kept politics off the town centre full stop, but especially at Christmas."

A Cornerstone in the National Identity

After a tough times marked by rising expenses, the pandemic, and evolving social trends, publicans were optimistic the chancellor's statement might bring some support—particularly through a long-promised reform of the commercial tax system.

However the chancellor disappointed those hopes, keeping the system unreformed and choosing instead to reduce the multiplier and pledge £4.3bn over three years in financial support for the shops, pubs, and restaurants sectors.

While perhaps a supportive move, the benefit of that funding pledge has been dwarfed by the effect of a periodic property reassessment, which has caused the valuation of hospitality venues to increase sharply from their Covid-affected lows.

From next April, business taxes are set to rise by more than double for the average hotel and 76% for a public house, versus just 4% for large supermarkets and 7% for distribution warehouses. A major hospitality group, which operates multiple brands, estimates 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, commented: "Literally overnight, the valuation of our business has increased twofold. That's going to be a massive rise for us."

This financial strain on business owners is inevitably reflected in 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.

Simultaneously, pandemic-related tax reliefs are being phased out, while sector businesses are still absorbing rises in employer contributions and the minimum wage from the previous budget.

"To create the worst possible budget for pubs and consumers, you would have come close to what we saw," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.

A number within the Labour party feel this is a battle they ought to have avoided, not least because of the important place the local pub plays in society.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a chip shop on the island, said: "We said for two years to the sector that we are going to help you out but then they get affected by this revaluation. We can't have taxes going down for large multinational companies but increasing for small restaurants and pubs."

Some highlight that Keir Starmer himself has long been a regular at his local pub, the Pineapple in north London, and frequently speaks of their significance to neighborhoods. "There's nothing any of us like better than going to the local for a drink, myself included," the PM stated in February.

Yet pollsters compare antagonising pub owners to doing so with NHS workers in terms of political risk.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, noted: "From soap operas to real life, pubs have a special place in the national consciousness.

"For many people the local pub is perceived to be an key pillar of the locality, even if a good proportion of those same people will infrequently drink there.

"The danger for politicians with making an enemy of pubs is that your opponents will easily be able to accuse you of assaulting the very heart of this nation and its traditions, particularly in the countryside. And they will be able to produce many emotive examples to drive the message home."

'Not a Personal Vendetta'

One such case is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" initiative. Lennox says he has distributed stickers to nearly 1,000 establishments and is dispatching 100 more every day.

His action has been backed by a number of well-known figures, including television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and singer Rick Astley, who part-owns a bar in north London—though the latter has said he will not formally bar Labour MPs.

"We have long sought help for a very long time," said Lennox, who is demanding a short-term VAT reduction. "The Treasury 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."

Some within the sector believe a protest singling out individual Labour MPs is could have unintended consequences. "I doubt it's a wise move to ban the very individuals we should be trying to persuade and influence," said Corbett-Collins.

When questioned this week, the Exchequer highlighted the support being offered to the sector. "We have aided pubs, restaurants and cafes with the budget's £4.3bn investment. This is in addition to our initiatives to simplify licensing, maintaining our cut to alcohol duty on beer from the tap, and capping corporation tax," a representative commented.

The business owners, however, are in little mood to yield, even if alienating MPs

Roy Malone
Roy Malone

A seasoned entrepreneur and business strategist with over a decade of experience in driving startup success and digital transformation.