'Entry Denied!': The Government's Battle with Public Houses Forecasts a New Year Challenge.
Labour MPs heading back to their local areas this end of the week might feel a sense of respite as a chaotic parliamentary session ends. But, for those hoping to frequent their community tavern for a relaxing beer, goodwill could be scarce. In fact, some may discover they are not allowed through the door.
For weeks, businesses throughout the nation have been putting up signs that declare "Labour MPs Not Welcome" in protest to revisions in business rates announced by the Finance Minister, Rachel Reeves, in her latest budget.
This movement means one fewer haven for many elected officials seeking refuge from the difficult situation of their party's unpopularity. MPs now report regular hostility in community settings after a rocky first 18 months that has seen the approval numbers drop sharply from around 34% to roughly under a fifth.
"It is difficult being the MP of the constituency you have always lived in," commented one. "The local pub is where we would go with the kids and just be a ordinary family. But the recent visits we've just ended up being confronted by other drinkers. Now I'm not even sure we'll be able to enter."
This sense of dismay is evident in a online clip 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 noted. "But the Larderhouse and other businesses with a 'MPs Not Welcome' sticker in the window, they are undermining the inclusive culture that local entrepreneurs have helped to cultivate." He went on, "We have to get politics off the high street completely, but especially at Christmas."
A Cherished Institution in the British Psyche
After a tough times marked by economic pressures, the pandemic, and evolving social trends, licensees were optimistic the budget might bring some assistance—specifically through a overdue overhaul of the commercial tax system.
But the chancellor dashed those hopes, leaving the system largely unchanged and opting rather to reduce the multiplier and pledge £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 three-yearly property revaluation, which has caused the valuation of pubs and restaurants to spike from their Covid-affected lows.
Beginning in next April, rates are set to jump by more than double for the average hotel and 76% for a public house, versus just 4% for big grocery chains and 7% for distribution warehouses. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, estimates it will face an additional tax bill of between £40m and £50m as a consequence.
Joe Butler, the publican at the Tollemache Arms in Northamptonshire, said: "Virtually instantly, the worth of our business has doubled. That's going to be a significant burden for us."
This financial strain on publicans is certainly reflected in the price of a punter's pint.
"A pint of beer is now unaffordable. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler added.
At the same time, Covid-era tax discounts are being phased out, while sector businesses are still absorbing increases in employer contributions and the living wage from last year's budget.
"To create the worst possible budget for pubs and consumers, you couldn't have done much worse than what we saw," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.
Several within the governing party think this is a confrontation they should not have picked, not least because of the vital role the neighborhood inn holds in national life.
Richard Quigley, the MP for the Isle of Wight West, who also runs a chip shop on the island, commented: "We pledged for two years to pubs and hospitality businesses that we are going to help you out but then they get slapped with this new assessment. We must not see rates being reduced for large multinational companies but increasing for independent businesses."
Observers note 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 local communities. "We all enjoy nothing more than going to the local for a pint, myself included," the PM remarked in February.
But political analysts liken confronting publicans to doing so with NHS workers in terms of political risk.
Joe Twyman, director of the polling firm Deltapoll, noted: "In fiction and in fact, pubs have a unique position in the British psyche.
"To a lot of individuals the neighborhood inn is seen as an important part of the community, even if a significant number of those same people will rarely actually drink there.
"The political risk with alienating pubs is that your opponents will quickly accuse you of attacking the core of this nation and its heritage, particularly in the countryside. And they will be able to produce many heartfelt examples to make their case."
'A Matter of Principle'
One such example is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "MPs Barred" campaign. Lennox reports he has handed out signs to nearly 1,000 establishments and is dispatching 100 more every day.
His protest has received support from several high-profile figures, such as 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—however the latter has indicated he will not formally bar Labour MPs.
"We have been asking for help for a very long time," explained Lennox, who is demanding a temporary VAT reduction. "The Treasury is dressing this up as a support measure but that's not what people are experiencing, and that is the thing that has aggrieved so many people."
Several within the sector think a protest targeting individual politicians is likely to have unintended consequences. "I'm not sure it's a good idea to ban the exact people we should be trying to persuade and influence," argued Corbett-Collins.
When asked this week, the Treasury spoke of the support being made available to the sector. "We are supporting the hospitality industry with the budget's £4.3bn investment. This follows our initiatives to ease licensing, maintaining our reduction to alcohol duty on beer from the tap, and capping corporation tax," a representative said.
The landlords, on the other hand, are in no mood to yield, even if losing MPs