'You're Barred!': Labour's Dispute with Pubs Signals a New Year Headache.

Elected representatives visiting their constituencies this weekend might breathe a sigh of respite as a hectic political term ends. Yet, for those hoping to stop by their neighborhood bar for a restorative beer, goodwill could be in short supply. Indeed, some may discover they are unwelcome inside.

Over the past few weeks, venues nationwide have been displaying signs that state "No Labour MPs" in objection to changes in business rates revealed by the Chancellor, Rachel Reeves, in her latest financial statement.

This protest translates to one fewer escape for many elected officials seeking solace from the difficult situation of their slumping poll ratings. Backbenchers now say frequent antagonism in community settings after a rocky first year and a half that has seen the party's ratings plummet from around 34% to roughly under a fifth.

"It is difficult being the MP of the area you have forever lived in," remarked one. "The local pub is where we used to go with the kids and just be a normal family. But the past occasions we've just ended up being verbally abused by other patrons. Now I'm not even sure we'll be able to enter."

This palpable disappointment is visible in a social media post by Tom Hayes, the Labour MP for Bournemouth East, discussing being refused entry to one of his local pubs, the Larderhouse.

"We're in the festive period," he said. "But the Larderhouse and other businesses with a 'No Labour MPs' sign 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 main street full stop, but above all at Christmas."

A Cornerstone in the British Psyche

After a challenging period marked by high costs, the COVID-19 crisis, and evolving social trends, licensees were optimistic the chancellor's statement might bring some assistance—specifically through a much-anticipated revamp of the commercial tax system.

Yet the chancellor disappointed those expectations, keeping the system unreformed and opting rather to reduce the multiplier and allocate £4.3bn over three years in funding for the retail and hospitality sectors.

While seemingly a positive step, the impact of that support package has been dwarfed by the effect of a periodic property revaluation, which has caused the rateable value of hospitality venues to surge from their pandemic-era lows.

From next April, rates are set to increase by more than double for the average hotel and 76% for a pub, in contrast to just four percent for large supermarkets and seven percent for logistics centres. A major hospitality group, which owns multiple brands, 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, explained: "With the click of a finger, the worth of our business has doubled. That's going to be a significant burden for us."

This financial strain on business owners is inevitably passed on to the price of a customer's pint.

"A pint of beer is now unaffordable. When we first started here 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler added.

Furthermore, Covid-era tax breaks are ending, while sector businesses are still absorbing increases in national insurance and the living wage from the previous budget.

"If you tried to design the most damaging budget for pubs and consumers, you wouldn't have got far away from what was announced," remarked Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Several within the Labour party feel this is a fight they ought to have avoided, not least because of the vital role the neighborhood inn holds in society.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a fish and chip shop on the island, said: "We said for two years to pubs and hospitality businesses that we are going to help you out but then they get affected by this revaluation. We must not see taxes being reduced for large multinational companies but up for independent businesses."

Commentators point out that Keir Starmer himself has long been a frequent patron at his local, the Pineapple in north London, and regularly mentions their value to local communities. "There is little we prefer than going to the pub for a pint, myself included," the PM said in February.

But strategists compare confronting pub owners to challenging NHS workers in terms of popular sentiment.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, explained: "From the Queen Vic to the Rovers Return, pubs have a unique position in the British psyche.

"To a lot of individuals the local pub is perceived to be an key pillar of the community, even if a good proportion of those same people will seldom drink there.

"The hazard with antagonising pubs is that your opponents will readily accuse you of attacking the core of this country and its history, especially in rural areas. And they will be able to produce many emotive examples to prove their point."

'Nothing Personal'

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

His action has gained the endorsement of a number of well-known figures, such as television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who part-owns a bar in north London—though the latter has clarified he will not formally bar Labour MPs.

"We have long sought help for a very long time," stated Lennox, who is demanding a temporary VAT reduction. "The Treasury is presenting this as a relief package but that's not what people are experiencing, and that is the thing that has aggrieved so many people."

Several within the sector believe a protest targeting individual Labour MPs is may be counterproductive. "I doubt it's a wise move to ban the precise representatives we should be trying to engage with and influence," argued Corbett-Collins.

When pressed this week, the Exchequer spoke of the package being offered to hospitality. "We are supporting the hospitality industry with the budget's £4.3bn investment. This is in addition to our work to ease licensing, maintaining our cut to alcohol duty on draught pints, and capping corporation tax," a representative commented.

The publicans, nevertheless, are in not the frame of mind to yield, even if turning away MPs

James Pruitt
James Pruitt

A passionate journalist and blogger with a focus on Central European affairs, dedicated to uncovering and sharing compelling narratives.