'Not Welcome!': Labour's Battle with Pubs Signals a Fresh Year Problem.

Government ministers heading back to their home districts this weekend might breathe a sigh of relief as a hectic parliamentary session ends. But, for those looking to visit their local pub for a relaxing beer, festive cheer could be lacking. Actually, some may realize they are not allowed through the door.

Over the past few weeks, establishments throughout the nation have been putting up signs that state "Labour MPs Not Welcome" in objection to revisions in business rates revealed by the Finance Minister, Rachel Reeves, in her most recent financial statement.

This movement translates to one fewer retreat for many elected officials seeking refuge from the harsh truth of their public disapproval. MPs now say frequent hostility in everyday places after a challenging first year and a half that has seen the party's ratings plummet from around a third to roughly 18%.

"It can be hard being the representative 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 shouted at by other customers. Now I'm not even sure we'll be able to enter."

This sense of dismay is clear in a recent video by Tom Hayes, the Labour MP for Bournemouth East, addressing being barred from one of his regular haunts, the Larderhouse.

"We're in the festive period," he noted. "Yet the Larderhouse and other businesses with a 'MPs Not Welcome' notice in the window, they are damaging the welcoming atmosphere that local entrepreneurs have helped to foster." He added, "We need to remove politics off the main street completely, but particularly at Christmas."

A Cornerstone in the National Identity

After a challenging period marked by rising expenses, the COVID-19 crisis, and changing habits, landlords were hopeful the budget might bring some support—specifically through a overdue reform of the commercial tax system.

However the chancellor disappointed those hopes, keeping the system unreformed and opting rather to reduce the multiplier and pledge £4.3bn over three years in aid for the shops, pubs, and restaurants sectors.

While perhaps a gesture of goodwill, the impact of that support package has been minimized by the effect of a three-yearly property revaluation, which has caused the valuation of hospitality venues to spike from their pandemic-era lows.

From next April, business taxes are set to jump by more than double for the average hotel and over three-quarters for a public house, compared with just four percent for big grocery chains and 7% for distribution warehouses. Whitbread, 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 outcome.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, said: "Virtually instantly, the valuation of our business has doubled. That's going to be a huge increase for us."

This financial strain on business owners is directly felt in the price of a customer's pint.

"The cost of a drink is now unaffordable. When we first started here 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler said.

Furthermore, Covid-era tax discounts are falling away, while sector businesses are still managing increases in employer contributions and the minimum wage from the previous budget.

"To create the worst possible budget for pubs and consumers, you wouldn't have got far away from what we saw," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

Many within the governing party think this is a fight they should not have picked, not least because of the vital place the local pub holds in national life.

Richard Quigley, the MP for the Isle of Wight West, who also operates a fish and chip shop on the island, argued: "We pledged for two years to the sector that we are going to provide support but then they get slapped with this new assessment. We cannot allow rates being reduced for big corporations but up for local venues."

Commentators note that Keir Starmer himself has often been a regular at his local, the Pineapple in north London, and frequently speaks of their importance to neighborhoods. "We all enjoy nothing more than going to the pub for a pint, myself included," the prime minister said in February.

However strategists compare antagonising pub owners to doing so with NHS workers in terms of popular sentiment.

Joe Twyman, director of the polling firm Deltapoll, said: "In fiction and in fact, pubs have a special place in the public imagination.

"To a lot of individuals the neighborhood inn is perceived to be an integral component of the community, even if a large segment of those same people will rarely actually drink there.

"The danger for politicians with alienating pubs is that your critics will readily accuse you of attacking the very heart of this country and its heritage, notably in rural areas. And they will be able to produce many emotive examples to make their case."

'Nothing Personal'

One such instance is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "MPs Barred" campaign. Lennox reports he has distributed notices to nearly 1,000 establishments and is dispatching 100 more every day.

His action has received support from several high-profile figures, such as broadcaster Jeremy Clarkson, who owns 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 formally bar Labour MPs.

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

A number within the sector feel a campaign banning individual politicians is may backfire. "I'm not sure it's a good idea to ban the exact people we should be trying to engage with and speak to," argued Corbett-Collins.

When pressed this week, the Exchequer highlighted the assistance being provided to the sector. "We have aided pubs, restaurants and cafes with the budget's £4.3bn investment. This is in addition to our efforts to ease licensing, keeping our cut to alcohol duty on beer from the tap, and limiting corporation tax," a representative said.

The business owners, nevertheless, are in not the frame of mind to compromise, even if losing MPs

Daniel Stephens
Daniel Stephens

A seasoned business consultant with over 15 years of experience in digital transformation and strategic planning.