'Entry Denied!': Labour's Dispute with Public Houses Forecasts a New Year Challenge.
Government ministers visiting their constituencies this weekend might experience a wave of respite as a turbulent parliamentary session concludes. Yet, for those planning to frequent their neighborhood bar for a relaxing pint, holiday spirit could be in short supply. Indeed, some may find they are barred from entry.
Over the past few weeks, establishments across the country have been posting signs that declare "MPs Barred" in objection to revisions in commercial property taxes unveiled by the Finance Minister, Rachel Reeves, in her latest financial statement.
This protest means one fewer haven for many government backbenchers seeking solace from the harsh truth of their slumping poll ratings. Representatives now report regular animosity in community settings after a challenging first year and a half that has seen the party's ratings fall from around a third to roughly under a fifth.
"It can be hard being the MP of the constituency you have always lived in," said one. "Our neighborhood bar is where we would go with the kids and just be a regular family. But the recent visits we've just ended up being confronted by other patrons. Now I'm not even sure we'll be able to enter."
This feeling of frustration is visible in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being refused entry to one of his local pubs, the Larderhouse.
"It's the Christmas season," he noted. "But the Larderhouse and other establishments with a 'MPs Not Welcome' notice in the window, they are damaging the inclusive culture that publicans have helped to foster." He went on, "We need to remove politics off the high street full stop, but especially at Christmas."
'Pubs Have a Special Place in the National Identity
After a tough times marked by economic pressures, the pandemic, and changing habits, publicans were hopeful the budget might bring some assistance—particularly through a overdue reform of the commercial tax system.
Yet the chancellor disappointed those hopes, leaving the system largely unchanged and choosing instead to lower headline rates and allocate £4.3bn over three years in aid for the retail and hospitality sectors.
While perhaps a supportive move, the impact of that funding pledge has been minimized by the effect of a periodic property reassessment, which has caused the taxable value of hospitality venues to surge from their Covid-affected lows.
Starting from next April, business taxes are set to rise by 115% for the average hotel and 76% for a pub, versus just four percent for large supermarkets and seven percent for distribution warehouses. A major hospitality group, which owns pubs, restaurants and the Premier Inn hotel chain, says 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, commented: "Literally overnight, the worth of our business has doubled. That's going to be a significant burden for us."
This burden on business owners is inevitably felt in the price of a punter's pint.
"A pint of beer is now too high. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler stated.
At the same time, pandemic-related tax breaks are ending, while sector businesses are still managing increases in national insurance and the living wage from the previous budget.
"If you wanted to write the most damaging financial plan for the hospitality sector and its customers, you couldn't have done much worse than what was announced," remarked Ash Corbett-Collins, the chair of Camra, the consumer organisation.
Many within the Labour party feel this is a battle they ought to have avoided, not least because of the important role the community pub plays 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, said: "We pledged for two years to pubs and hospitality businesses that we are going to offer relief but then they get hit by this new assessment. We cannot allow rates being reduced for large multinational companies but up for independent businesses."
Observers point out that Keir Starmer himself has often been a frequent patron at his local pub, the Pineapple in north London, and regularly mentions their value to neighborhoods. "We all enjoy nothing more than going to the pub for a drink, myself included," the prime minister remarked in February.
But political analysts liken picking a fight with pub owners to taking on NHS workers in terms of popular sentiment.
Joe Twyman, co-founder of the polling firm Deltapoll, noted: "In fiction and in fact, pubs have a cherished status in the national consciousness.
"For many people 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 political risk with antagonising pubs is that your critics will easily be able to accuse you of attacking the very heart of this country and its history, notably in rural areas. 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 publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" campaign. Lennox reports he has distributed signs to nearly 1,000 venues and is sending out 100 more every day.
His campaign has received support from a number of high-profile figures, including television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a brewpub in north London—although the latter has clarified he will not refuse service to Labour MPs.
"We have pleaded for relief for a considerable period," said Lennox, who is demanding a temporary VAT reduction. "Ministers is spinning this as a support measure but that's not what people are seeing, and that is the thing that has frustrated so many people."
Several within the industry feel a campaign singling out individual Labour MPs is likely to backfire. "I'm not sure it's a wise move to ban the very individuals we should be trying to persuade and speak to," commented Corbett-Collins.
When pressed this week, the Treasury spoke of the support being made available to the sector. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn support package. This comes on top of our efforts to simplify licensing, maintaining our reduction to alcohol duty on draught pints, and capping corporation tax," a spokesperson stated.
The business owners, however, are in no mood to compromise, even if turning away MPs