'You're Barred!': Labour's Clash with Pubs Forecasts a Upcoming Year Challenge.

Elected representatives visiting their constituencies this weekend might experience a wave of respite as a hectic political term concludes. However, for those looking to frequent their community tavern for a restorative beer, goodwill could be lacking. Indeed, some may discover they are not allowed through the door.

Over the past few weeks, businesses nationwide have been displaying signs that proclaim "MPs Barred" in protest to changes in commercial property taxes unveiled by the Chancellor, Rachel Reeves, in her most recent budget.

This campaign results in one fewer haven for many elected officials seeking refuge from the bruising reality of their public disapproval. MPs now report commonplace animosity in public spaces after a challenging first year and a half that has seen the approval numbers drop sharply from around 34% to roughly under a fifth.

"It is difficult being the MP of the area you have always lived in," remarked one. "The local pub is where we used to go with the kids and just be a normal family. But the last few times we've just ended up being confronted by other drinkers. Now I'm not even sure we'll be able to enter."

This palpable disappointment is evident in a recent video by Tom Hayes, the Labour MP for Bournemouth East, discussing being refused entry to one of his regular haunts, the Larderhouse.

"It's the Christmas season," he noted. "However the Larderhouse and other establishments with a 'MPs Not Welcome' sticker in the window, they are undermining the community spirit that local entrepreneurs have helped to nourish." He added, "We have to get politics off the town centre altogether, but above all at Christmas."

'Pubs Have a Special Place in the British Psyche

After a difficult few years marked by rising expenses, the pandemic, and changing habits, publicans were optimistic the budget might bring some assistance—specifically through a long-promised revamp of the business rates system.

But the chancellor poured cold water on those expectations, keeping the system unreformed and opting rather to reduce the multiplier and pledge £4.3bn over three years in funding for the shops, pubs, and restaurants sectors.

While seemingly a gesture of goodwill, the impact of that support package has been minimized by the effect of a periodic property reassessment, which has caused the taxable value of hospitality venues to increase sharply from their Covid-affected lows.

Beginning in next April, business taxes are set to rise by 115% for the typical hotel and 76% for a public house, compared with just 4% for big grocery chains and 7% for logistics centres. A major hospitality group, which operates pubs, restaurants and the Premier Inn hotel chain, says 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: "With the click of a finger, the valuation of our business has increased twofold. That's going to be a significant burden for us."

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

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

Simultaneously, pandemic-related tax breaks are ending, while sector businesses are still coping with increases in employer contributions and the living wage from the previous budget.

"If you tried to design the least helpful budget for the hospitality sector and its customers, you wouldn't have got far away from what we saw," remarked Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

Many within the Labour party think this is a fight they ought to have avoided, not least because of the important role the community pub plays in British culture.

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 affected by this revaluation. We must not see taxes being reduced for large multinational companies but up for independent businesses."

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

Yet strategists compare confronting publicans to doing so with 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 national consciousness.

"For many people the local pub is perceived to be an integral component of the community, even if a large segment of those same people will infrequently drink there.

"The hazard with antagonising pubs is that your opponents will quickly accuse you of attacking the core of this country and its history, especially in the countryside. And they will be able to produce many powerful examples to drive the message home."

'Nothing Personal'

One such example is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "MPs Barred" initiative. Lennox reports he has distributed notices to nearly 1,000 venues and is mailing 100 more every day.

His protest has gained the endorsement of several high-profile figures, including television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—although the latter has indicated he will not refuse service to Labour MPs.

"We have been asking for support for a considerable period," stated Lennox, who is advocating for a temporary VAT reduction. "Ministers is spinning this as a helpful policy but that's not what people are experiencing, and that is the thing that has aggrieved so many people."

Some within the industry feel a campaign banning individual Labour MPs is likely to backfire. "It's questionable it's a effective strategy to ban the very individuals we should be trying to invite in and speak to," argued Corbett-Collins.

When pressed this week, the Exchequer spoke of the package being made available to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn support package. This comes on top of our work to ease licensing, maintaining our reduction to alcohol duty on beer from the tap, and capping corporation tax," a spokesperson said.

The publicans, however, are in little mood to compromise, even if losing MPs

Gregory Villegas
Gregory Villegas

Digital marketing strategist with over a decade of experience, specializing in SEO and content creation for diverse industries.