'Entry Denied!': Labour's Clash with Local Inns Signals a Upcoming Year Headache.

Labour MPs visiting their constituencies this weekend might breathe a sigh of respite as a hectic political term wraps up. But, for those planning to stop by their neighborhood bar for a casual drink, festive cheer could be scarce. Actually, some may find they are barred from entry.

Over the past few weeks, venues throughout the nation have been posting signs that proclaim "Labour MPs Not Welcome" in protest to changes in business rates unveiled by the Chancellor, Rachel Reeves, in her latest financial statement.

This protest translates to one fewer escape for many elected officials seeking refuge from the bruising reality of their party's unpopularity. Representatives now describe frequent animosity in community settings after a challenging first 18 months that has seen the approval numbers fall from around a third to roughly 18%.

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

This palpable disappointment is visible in a social media post by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being refused entry to one of his regular haunts, the Larderhouse.

"It's meant to be a time of joy," he stated. "Yet the Larderhouse and other establishments with a 'MPs Not Welcome' sticker in the window, they are undermining the welcoming atmosphere that local entrepreneurs have helped to nourish." He continued, "We need to remove politics off the main street completely, but above all at Christmas."

A Cherished Institution in the National Identity

After a tough times marked by high costs, the pandemic, and changing habits, publicans were anticipating the chancellor's statement might bring some relief—specifically through a overdue overhaul of the commercial tax system.

But the chancellor disappointed those expectations, keeping the system largely unchanged and choosing instead to reduce headline rates and allocate £4.3bn over three years in aid for the shops, pubs, and restaurants sectors.

While seemingly a gesture of goodwill, the benefit of that support package has been dwarfed by the effect of a periodic property revaluation, which has caused the taxable value of pubs and restaurants to surge from their Covid-affected lows.

Starting from next April, business taxes are set to rise by more than double for the typical hotel and 76% for a public house, versus just four percent for large supermarkets and seven percent for logistics centres. A major hospitality group, which operates pubs, restaurants and the Premier Inn hotel chain, estimates it will face an extra tax bill of between £40m and £50m as a consequence.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "With the click of a finger, the value of our business has increased twofold. That's going to be a significant burden for us."

This financial strain on publicans is directly passed on to the price of a customer's pint.

"A pint of beer is now too high. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler stated.

Simultaneously, Covid-era tax reliefs are being phased out, while hospitality operators are still managing increases in national insurance and the living wage from last year's budget.

"To create the most damaging budget for the hospitality sector and its customers, you wouldn't have got far away from what came out," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

A number within the governing party feel this is a fight they could have sidestepped, not least because of the important role the community pub plays in society.

Richard Quigley, the 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 help you out but then they get hit by this revaluation. We can't have taxes going down for big corporations but increasing for independent businesses."

Observers highlight that Keir Starmer himself has long been a frequent patron at his local pub, the Pineapple in north London, and often references their value to local communities. "There's nothing any of us like better than going to the local for a pint, myself included," the PM stated in February.

However political analysts compare picking a fight with pub owners to doing so with NHS workers in terms of public perception.

Joe Twyman, director of the polling firm Deltapoll, noted: "In fiction and in fact, pubs have a cherished status in the national consciousness.

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

"The political risk with antagonising pubs is that your political rivals will easily be able to accuse you of assaulting the core of this nation and its traditions, notably in the countryside. And they will be able to produce many powerful examples to make their case."

'Nothing Personal'

One such case is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" initiative. Lennox says he has distributed notices to nearly 1,000 establishments and is sending out 100 more every day.

His campaign has been backed by a number of well-known figures, including television presenter 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 indicated he will not formally bar Labour MPs.

"We have long sought relief for a years," explained Lennox, who is advocating for a short-term VAT reduction. "The government is dressing this up as a helpful policy but that's not what people are seeing, and that is the thing that has aggrieved so many people."

Some within the industry believe a campaign banning individual Labour MPs is could have unintended consequences. "I'm not sure it's a wise move to ban the precise representatives we should be trying to persuade and lobby," commented Corbett-Collins.

When asked this week, the government department highlighted the support being made available to the sector. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn investment. This comes on top of our initiatives to ease licensing, maintaining our cut to alcohol duty on beer from the tap, and limiting corporation tax," a official commented.

The landlords, however, are in not the frame of mind to back down, even if turning away MPs

Thomas Cook
Thomas Cook

Elena is a tech enthusiast and business strategist with over a decade of experience in digital transformation and startup consulting.