'Entry Denied!': The Government's Battle with Local Inns Promises a New Year Challenge.
Government ministers visiting their local areas this weekend might experience a wave of relief as a chaotic political term ends. But, for those hoping to visit their local pub for a casual beer, festive cheer could be lacking. Indeed, some may discover they are unwelcome inside.
In recent weeks, establishments nationwide have been putting up signs that state "Labour MPs Not Welcome" in demonstration to adjustments in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her autumn financial statement.
This movement results in one fewer retreat for many government backbenchers seeking refuge from the bruising reality of their public disapproval. MPs now describe frequent hostility in public spaces after a difficult first year and a half that has seen the government's support fall from around 34% to roughly 18%.
"It can be hard being the representative of the constituency you have forever lived in," said one. "That pub is where we would go with the kids and just be a normal family. But the past occasions we've just ended up being confronted by other customers. Now I'm not even sure we'll be able to be served."
This sense of dismay is clear in a recent video by Tom Hayes, the Labour MP for Bournemouth East, discussing being refused entry to one of his local pubs, the Larderhouse.
"It's meant to be a time of joy," he stated. "Yet the Larderhouse and other businesses with a 'MPs Not Welcome' notice in the window, they are eroding the community spirit that local entrepreneurs have helped to nourish." He continued, "Politics must be kept politics off the town centre altogether, but above all at Christmas."
A Cherished Institution in the British Psyche
After a tough times marked by economic pressures, the pandemic, and changing habits, publicans were anticipating the chancellor's statement might bring some relief—specifically through a overdue revamp of the business rates system.
But the chancellor poured cold water on those hopes, leaving the system largely unchanged and opting rather to lower headline rates and commit £4.3bn over three years in aid for the retail and hospitality sectors.
While seemingly a positive step, the impact of that funding pledge has been overshadowed by the effect of a three-yearly property revaluation, which has caused the valuation of hospitality venues to spike from their Covid-affected lows.
Starting from next April, business taxes are set to increase by 115% for the average hotel and 76% for a public house, compared with just 4% for large supermarkets and seven percent for logistics centres. Whitbread, which operates pubs, restaurants and the Premier Inn hotel chain, states it will face an additional tax bill of between £40m and £50m as a result.
Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "With the click of a finger, the worth of our business has increased twofold. That's going to be a massive rise for us."
This burden on publicans is directly felt in the price of a customer's pint.
"The cost of a drink is now too high. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler stated.
At the same time, Covid-era tax breaks are falling away, while hospitality operators are still coping with rises in employer contributions and the minimum wage from last year's budget.
"If you wanted to write the worst possible financial plan for pubs and consumers, you couldn't have done much worse than what we saw," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.
Several within the governing party believe this is a battle they could have sidestepped, not least because of the important place the neighborhood inn holds in British culture.
Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a chip shop on the island, said: "We said for two years to pubs and hospitality businesses that we are going to provide support but then they get hit by this revaluation. We can't have taxes going down for big corporations but increasing for small restaurants and pubs."
Commentators note that Keir Starmer himself has often been a frequent patron at his local pub, the Pineapple in north London, and often references their significance to neighborhoods. "There is little we prefer than going to the local for a pint, myself included," the prime minister remarked in February.
Yet strategists compare picking a fight with publicans to taking on NHS workers in terms of public perception.
Joe Twyman, co-founder of the public opinion consultancy Deltapoll, explained: "From the Queen Vic to the Rovers Return, pubs have a special place in the national consciousness.
"In the public's view the local pub is perceived to be an important part of the community, even if a good proportion of those same people will rarely actually drink there.
"The hazard with antagonising pubs is that your political rivals will easily be able to accuse you of undermining the core of this nation and its traditions, especially in the countryside. And they will be able to produce many powerful examples to prove their point."
'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 notices to nearly 1,000 venues and is dispatching 100 more every day.
His action has received support from 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 part-owns a bar in north London—although the latter has clarified he will not refuse service to Labour MPs.
"We have pleaded for support for a years," said Lennox, who is demanding a temporary VAT reduction. "The government is spinning this as a helpful policy but that's not what people are experiencing, and that is the thing that has frustrated so many people."
Several within the industry think a campaign targeting individual Labour MPs is could backfire. "It's questionable it's a effective strategy to ban the very individuals we should be trying to engage with and influence," said Corbett-Collins.
When questioned this week, the Exchequer pointed to the package being made available to hospitality. "We have aided pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our efforts to ease licensing, maintaining our reduction to alcohol duty on draught pints, and capping corporation tax," a spokesperson stated.
The landlords, on the other hand, are in no mood to back down, even if losing MPs