'Not Welcome!': Labour's Clash with Pubs Forecasts a Fresh Year Headache.

Government ministers visiting their constituencies this end of the week might breathe a sigh of relief as a chaotic political term wraps up. Yet, for those looking to visit their neighborhood bar for a casual pint, goodwill could be scarce. Indeed, some may realize they are unwelcome inside.

Over the past few weeks, establishments across the country have been putting up signs that state "No Labour MPs" in protest to adjustments in business rates announced by the Finance Minister, Rachel Reeves, in her latest financial statement.

This protest translates to one fewer escape for many elected officials seeking refuge from the difficult situation of their slumping poll ratings. Representatives now describe frequent hostility in everyday places after a rocky first period that has seen the approval numbers fall from around a third to roughly under a fifth.

"It is difficult being the representative of the constituency you have forever lived in," remarked one. "Our neighborhood bar is where we went with the kids and just be a ordinary family. But the past occasions we've just ended up being verbally abused by other drinkers. Now I'm not even sure we'll be able to enter."

This palpable disappointment is visible in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being barred from one of his regular haunts, the Larderhouse.

"We're in the festive period," he said. "Yet the Larderhouse and other businesses with a 'No Labour MPs' notice in the window, they are eroding the inclusive culture that local entrepreneurs have helped to cultivate." He continued, "We need to remove politics off the high street completely, but especially at Christmas."

'Pubs Have a Special Place in the National Identity

After a challenging period marked by rising expenses, the COVID-19 crisis, and evolving social trends, publicans were optimistic the chancellor's statement might bring some support—particularly through a much-anticipated reform of the commercial tax system.

But the chancellor dashed those hopes, leaving the system largely unchanged and choosing instead to reduce the multiplier and allocate £4.3bn over three years in aid for the retail and hospitality sectors.

While seemingly a gesture of goodwill, the value of that support package has been dwarfed by the effect of a three-yearly property reassessment, which has caused the taxable value of hospitality venues to surge from their pandemic-era lows.

Beginning in next April, rates are set to jump by more than double for the average hotel and 76% for a public house, compared with just four percent for large supermarkets and 7% for logistics centres. A major hospitality group, which operates multiple brands, 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, commented: "Virtually instantly, the valuation of our business has increased twofold. That's going to be a massive rise for us."

This financial strain on publicans is inevitably felt in the price of a punter's pint.

"The price of a pint is now prohibitively expensive. When we first started here 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler added.

Furthermore, pandemic-related tax discounts are being phased out, while sector businesses are still managing increases in employer contributions and the living wage from last year's budget.

"If you tried to design the worst possible budget for pubs and consumers, you couldn't have done much worse than what was announced," said Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Several within the governing party think this is a battle they should not have picked, not least because of the important role the neighborhood inn holds in society.

Richard Quigley, the MP for the Isle of Wight West, who also operates a chip shop on the island, said: "We said for two years to the sector that we are going to provide support but then they get affected by this revaluation. We can't have taxes going down for big corporations but up for small restaurants and pubs."

Observers point out that Keir Starmer himself has long been a regular at his local pub, the Pineapple in north London, and frequently speaks of their importance to neighborhoods. "There's nothing any of us like better than going to the local for a drink, myself included," the prime minister said in February.

However strategists compare confronting publicans to doing so with NHS workers in terms of political risk.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, noted: "In fiction and in fact, pubs have a cherished status in the public imagination.

"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 infrequently drink there.

"The danger for politicians with making an enemy of pubs is that your political rivals will quickly accuse you of attacking the foundation of this country and its heritage, particularly in the countryside. And they will be able to produce many powerful examples to make their case."

'A Matter of Principle'

One such example is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "No Labour MPs" campaign. Lennox says he has handed out signs to nearly 1,000 premises and is mailing 100 more every day.

His action has received support from several prominent figures, such as broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a bar in north London—although the latter has said he will not formally bar Labour MPs.

"We have pleaded for support for a considerable period," said Lennox, who is demanding a short-term VAT reduction. "The government 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 industry feel a campaign targeting individual Labour MPs is could be counterproductive. "I doubt it's a wise move to ban the exact people we should be trying to persuade and influence," said Corbett-Collins.

When asked this week, the Treasury spoke of the support being offered to hospitality. "We have aided pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our efforts to simplify licensing, keeping our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a official stated.

The publicans, on the other hand, are in no mood to yield, even if losing MPs

Michelle Avery
Michelle Avery

A tech enthusiast and writer passionate about exploring the intersection of culture and innovation.