'You're Barred!': The Government's Dispute with Public Houses Forecasts a Upcoming Year Headache.
Labour MPs heading back to their local areas this end of the week might experience a wave of respite as a turbulent political term concludes. But, for those planning to stop by their community tavern for a relaxing beer, festive cheer could be scarce. In fact, some may find they are not allowed through the door.
In recent weeks, businesses nationwide have been putting up signs that state "MPs Barred" in demonstration to revisions in business rates revealed by the Chancellor, Rachel Reeves, in her most recent financial statement.
This campaign means one fewer retreat for many elected officials seeking refuge from the bruising reality of their slumping poll ratings. Backbenchers now describe frequent antagonism in everyday places after a rocky first 18 months that has seen the government's support plummet from around a third to roughly under a fifth.
"It's challenging being the MP of the area you have forever lived in," remarked one. "Our neighborhood bar is where we would go with the kids and just be a normal family. But the past occasions we've just ended up being verbally abused by other customers. Now I'm not even sure we'll be able to get in."
This sense of dismay is evident in a social media post by Tom Hayes, the Labour MP for Bournemouth East, discussing being barred from one of his regular haunts, the Larderhouse.
"It's meant to be a time of joy," he said. "However the Larderhouse and other businesses with a 'No Labour MPs' sign in the window, they are damaging the inclusive culture that business owners have helped to foster." He went on, "We need to remove politics off the main street altogether, but especially at Christmas."
A Cherished Institution in the British Psyche
After a difficult few years marked by high costs, the COVID-19 crisis, and evolving social trends, publicans were optimistic the chancellor's statement might bring some relief—particularly through a much-anticipated overhaul of the commercial tax system.
But the chancellor dashed those expectations, leaving the system unreformed and opting rather to lower headline rates and allocate £4.3bn over three years in funding for the retail and hospitality sectors.
While perhaps a positive step, the benefit of that funding pledge has been minimized by the effect of a three-yearly property revaluation, which has caused the taxable value of pubs and restaurants to spike from their Covid-affected lows.
Starting from next April, business taxes are set to rise by more than double for the average hotel and over three-quarters for a public house, compared with just 4% for big grocery chains and 7% for logistics centres. Whitbread, which operates multiple brands, says it will face an extra tax bill of between £40m and £50m as a result.
Joe Butler, the publican at the Tollemache Arms in Northamptonshire, explained: "Literally overnight, the value of our business has increased twofold. That's going to be a significant burden for us."
This pressure on business owners is directly passed on to the price of a punter'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 nearly £7 a pint," Butler added.
Furthermore, pandemic-related tax discounts are ending, while sector businesses are still absorbing rises in employer contributions and the minimum wage from last year's budget.
"If you wanted to write the most damaging financial plan for pubs and consumers, you wouldn't have got far away from what came out," stated Ash Corbett-Collins, the chair of Camra, the campaign for real ale.
A number within the Labour party think this is a fight they should not have picked, not least because of the important role the community pub holds in national life.
Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a fish and chip shop on the island, argued: "We said for two years to the sector that we are going to offer relief but then they get affected by this new assessment. We cannot allow rates being reduced for large multinational companies but increasing for small restaurants and pubs."
Commentators point out that Keir Starmer himself has often been a frequent patron at his local, the Pineapple in north London, and often references their importance to local communities. "We all enjoy nothing more than going to the pub for a drink, myself included," the PM stated in February.
However strategists compare confronting pub owners to challenging NHS workers in terms of public perception.
Joe Twyman, director of the public opinion consultancy Deltapoll, noted: "From the Queen Vic to the Rovers Return, pubs have a unique position in the British psyche.
"In the public's view the local pub is regarded as an important part of the community, even if a large segment of those same people will seldom drink there.
"The political risk with alienating pubs is that your opponents will quickly accuse you of assaulting the very heart of this nation and its traditions, particularly 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 coordinator of the "No Labour MPs" campaign. Lennox reports he has provided notices to nearly 1,000 establishments and is mailing 100 more every day.
His action has been backed by a number of prominent figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who part-owns a bar in north London—however the latter has said he will not refuse service to Labour MPs.
"We have been asking for relief for a very long time," stated Lennox, who is demanding a short-term VAT reduction. "Ministers is presenting this as a support measure but that's not what people are feeling, and that is the thing that has aggrieved so many people."
A number within the industry believe a protest banning individual Labour MPs is likely to have unintended consequences. "I doubt it's a effective strategy to ban the exact people we should be trying to invite in and influence," commented Corbett-Collins.
When asked this week, the government department spoke of the support being provided to hospitality. "We have aided the hospitality industry with the budget's £4.3bn investment. This follows our work to ease licensing, keeping our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a spokesperson stated.
The business owners, nevertheless, are in no mood to compromise, even if alienating MPs