'Not Welcome!': The Government's Dispute with Public Houses Forecasts a New Year Problem.

Labour MPs heading back to their constituencies this end of the week might breathe a sigh of respite as a hectic political term ends. But, for those looking to visit their neighborhood bar for a relaxing beer, festive cheer could be scarce. In fact, some may realize they are unwelcome inside.

Over the past few weeks, establishments nationwide have been displaying signs that proclaim "No Labour MPs" in demonstration to adjustments in commercial property taxes revealed by the Chancellor, Rachel Reeves, in her autumn financial statement.

This campaign means one fewer escape for many Labour MPs seeking solace from the difficult situation of their party's unpopularity. MPs now report regular hostility in public spaces after a rocky first year and a half that has seen the approval numbers plummet from around 34% to roughly 18%.

"It is difficult 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 shouted at by other customers. Now I'm not even sure we'll be able to get in."

This palpable disappointment is clear in a online clip by Tom Hayes, the Labour MP for Bournemouth East, addressing being banned from one of his regular haunts, the Larderhouse.

"We're in the festive period," he noted. "Yet the Larderhouse and other businesses with a 'No Labour MPs' sign in the window, they are undermining the community spirit that publicans have helped to foster." He continued, "We need to remove politics off the high street altogether, but particularly at Christmas."

A Cherished Institution in the British Psyche

After a difficult few years marked by high costs, the pandemic, and evolving social trends, landlords were anticipating 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, 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 positive step, the impact of that support package has been overshadowed by the effect of a three-yearly property reassessment, which has caused the rateable value of pubs and restaurants to increase sharply from their pandemic-era lows.

Beginning in next April, rates are set to rise by more than double for the typical hotel and 76% for a pub, versus just four percent for large supermarkets and 7% for distribution warehouses. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, says it will face an extra tax bill of between £40m and £50m as a outcome.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "Virtually instantly, the worth of our business has doubled. That's going to be a significant burden for us."

This burden on publicans is inevitably felt in the price of a customer's pint.

"The price of a pint is now unaffordable. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler said.

Simultaneously, Covid-era tax reliefs are falling away, while sector businesses are still absorbing increases in national insurance and the minimum wage from last year's budget.

"If you tried to design the least helpful financial plan for pubs and consumers, you would have come close to what we saw," said Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Several within the Labour party believe this is a confrontation they should not have picked, not least because of the important role the local pub holds in British culture.

Richard Quigley, the MP for the Isle of Wight West, who also runs a chip shop on the island, argued: "We promised for two years to the sector that we are going to offer relief but then they get slapped with this revaluation. We cannot allow taxes going down for big corporations but increasing for local venues."

Commentators highlight that Keir Starmer himself has long been a regular at his local, the Pineapple in north London, and regularly mentions their value to neighborhoods. "We all enjoy nothing more than going to the local for a pint, myself included," the PM stated in February.

But pollsters compare antagonising pub owners to taking on NHS workers in terms of political risk.

Joe Twyman, co-founder of the polling firm Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a unique position in the British psyche.

"To a lot of individuals the neighborhood inn is perceived to be an important part of the locality, even if a significant number of those same people will seldom drink there.

"The danger for politicians with making an enemy of pubs is that your political rivals will easily be able to accuse you of undermining the foundation of this nation and its history, particularly in rural areas. And they will be able to produce many heartfelt examples to drive the message home."

'Nothing Personal'

One such case 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 distributed stickers to nearly 1,000 venues and is mailing 100 more every day.

His campaign has gained the endorsement of several well-known figures, such as television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—though the latter has said he will not refuse service to Labour MPs.

"We have long sought support for a years," stated Lennox, who is calling for a short-term VAT reduction. "The government is spinning this as a support measure but that's not what people are experiencing, and that is the thing that has angered so many people."

A number within the industry think a protest singling out individual politicians is may backfire. "I'm not sure it's a wise move to ban the very individuals we should be trying to persuade and speak to," said Corbett-Collins.

When questioned this week, the Exchequer spoke of the assistance being made available to the sector. "We have aided pubs, restaurants and cafes with the budget's £4.3bn support package. This is in addition to our work to simplify licensing, keeping our reduction to alcohol duty on beer from the tap, and capping corporation tax," a official stated.

The publicans, nevertheless, are in little mood to back down, even if losing MPs

Michael Cooper
Michael Cooper

An avid hiker and travel writer passionate about exploring Italy's natural landscapes and sharing outdoor experiences.