'Not Welcome!': The Government's Clash with Pubs Forecasts a Upcoming Year Headache.
Government ministers visiting their home districts this end of the week might feel a sense of relief as a chaotic parliamentary session wraps up. However, for those planning to visit their community tavern for a casual drink, festive cheer could be scarce. Indeed, some may find they are not allowed through the door.
For weeks, establishments nationwide have been posting signs that declare "MPs Barred" in demonstration to revisions in business rates revealed by the Chancellor, Rachel Reeves, in her most recent financial statement.
This protest means one fewer haven for many elected officials seeking refuge from the difficult situation of their party's unpopularity. MPs now describe commonplace animosity in public spaces after a difficult first 18 months that has seen the government's support fall from around 34% to roughly 18%.
"It can be hard being the representative of the area you have always lived in," commented one. "That pub is where we used to go 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 palpable disappointment is evident in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, discussing being refused entry to one of his regular haunts, the Larderhouse.
"We're in the festive period," he said. "However the Larderhouse and other establishments with a 'No Labour MPs' sticker in the window, they are damaging the welcoming atmosphere that business owners have helped to foster." He added, "Politics must be kept politics off the town centre completely, but particularly at Christmas."
A Cornerstone in the British Psyche
After a tough times marked by high costs, the COVID-19 crisis, and changing habits, licensees were optimistic the budget might bring some support—specifically through a much-anticipated overhaul of the business rates system.
Yet the chancellor disappointed those hopes, keeping the system largely unchanged and opting rather to lower headline rates and pledge £4.3bn over three years in financial support for the retail and hospitality sectors.
While seemingly a gesture of goodwill, the value of that funding pledge has been dwarfed by the effect of a periodic property reassessment, which has caused the rateable value of pubs and restaurants to increase sharply from their Covid-affected lows.
Starting from next April, business taxes are set to rise by more than double for the typical hotel and over three-quarters for a pub, compared with just 4% for large supermarkets and seven percent for logistics centres. A major hospitality group, which operates pubs, restaurants and the Premier Inn hotel chain, estimates it will face an additional tax bill of between £40m and £50m as a outcome.
Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, said: "Literally overnight, the value of our business has increased twofold. That's going to be a significant burden for us."
This pressure on business owners is certainly passed on to the price of a punter's pint.
"The cost of a drink 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 stated.
At the same time, pandemic-related tax breaks are being phased out, while hospitality operators are still absorbing rises in national insurance and the living wage from the previous budget.
"To create the most damaging financial plan for pubs and consumers, you would have come close to what came out," said Ash Corbett-Collins, the chair of Camra, the campaign for real ale.
A number within the governing party think this is a fight they should not have picked, not least because of the central role the neighborhood inn holds in British culture.
Richard Quigley, the MP for the Isle of Wight West, who also runs a fish and chip shop on the island, said: "We said for two years to the sector that we are going to offer relief but then they get hit by this revaluation. We must not see rates being reduced for large multinational companies but up for local venues."
Some highlight that Keir Starmer himself has often been a frequent patron at his local, the Pineapple in north London, and regularly mentions 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.
But political analysts liken confronting publicans to challenging NHS workers in terms of political risk.
Joe Twyman, director of the polling firm Deltapoll, noted: "From the Queen Vic to the Rovers Return, pubs have a unique position in the British psyche.
"For many people the local pub is seen as an key pillar of the locality, even if a significant number of those same people will seldom drink there.
"The political risk with antagonising pubs is that your opponents will readily accuse you of undermining the very heart of this nation and its heritage, notably in the countryside. And they will be able to produce many powerful examples to prove their point."
'A Matter of Principle'
One such instance 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 handed out stickers to nearly 1,000 premises and is dispatching 100 more every day.
His protest has received support from a number of high-profile figures, such as broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—although the latter has said he will not actually ban Labour MPs.
"We have been asking for relief for a years," said Lennox, who is calling for a temporary VAT reduction. "Ministers is dressing this up as a helpful policy but that's not what people are experiencing, and that is the thing that has aggrieved so many people."
A number within the industry think a protest banning individual politicians is may be counterproductive. "I'm not sure it's a effective strategy to ban the precise representatives we should be trying to invite in and speak to," argued Corbett-Collins.
When asked this week, the Treasury pointed to the support being provided to the sector. "We are supporting the hospitality industry with the budget's £4.3bn support package. This comes on top of our efforts to simplify licensing, keeping our reduction to alcohol duty on beer from the tap, and capping corporation tax," a representative commented.
The business owners, on the other hand, are in little mood to compromise, even if alienating MPs