'Entry Denied!': The Government's Battle with Public Houses Forecasts a Upcoming Year Problem.
Labour MPs heading back to their local areas this end of the week might breathe a sigh of respite as a turbulent political term wraps up. However, for those planning to visit their local pub for a relaxing drink, festive cheer could be scarce. Actually, some may discover they are not allowed through the door.
In recent weeks, venues across the country have been putting up signs that state "No Labour MPs" in objection to revisions in commercial property taxes revealed by the Finance Minister, Rachel Reeves, in her autumn budget.
This movement translates to one fewer retreat for many government backbenchers seeking refuge from the harsh truth of their party's unpopularity. Representatives now report regular animosity in everyday places after a difficult first year and a half that has seen the government's support fall from around 34% to roughly under a fifth.
"It's challenging being the MP of the area you have always lived in," said one. "The local pub is where we went with the kids and just be a ordinary family. But the recent visits we've just ended up being confronted by other patrons. 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 Member of Parliament for Bournemouth East, lamenting being banned from one of his regular haunts, the Larderhouse.
"We're in the festive period," he said. "Yet the Larderhouse and other establishments with a 'No Labour MPs' notice in the window, they are damaging the community spirit that business owners have helped to cultivate." He continued, "We need to remove politics off the main street full stop, but especially at Christmas."
'Pubs Have a Special Place in the British Psyche
After a difficult few years marked by economic pressures, the pandemic, and evolving social trends, licensees were optimistic the chancellor's statement might bring some supportโnamely through a overdue reform of the business rates system.
However the chancellor poured cold water on those expectations, leaving the system unreformed and opting rather to lower the multiplier and pledge ยฃ4.3bn over three years in funding for the retail and hospitality sectors.
While perhaps a supportive move, the value of that support package has been dwarfed by the effect of a periodic property revaluation, which has caused the valuation of pubs and restaurants to spike from their Covid-affected lows.
Beginning in next April, business taxes are set to rise by 115% for the average hotel and 76% for a public house, compared with just 4% for big grocery chains and seven percent for logistics centres. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, says it will face an extra tax bill of between ยฃ40m and ยฃ50m as a outcome.
Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, explained: "Virtually instantly, the valuation of our business has doubled. That's going to be a significant burden for us."
This financial strain on publicans is directly passed on to the price of a punter's pint.
"The cost of a drink is now prohibitively expensive. When we first took this pub on 10 years ago, we charged ยฃ3.40 a pint. We're now verging on ยฃ7 a pint," Butler stated.
Furthermore, pandemic-related tax breaks are ending, while hospitality operators are still managing increases in national insurance and the minimum wage from the previous budget.
"If you wanted to write the least helpful budget for pubs and consumers, you couldn't have done much worse than what we saw," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.
Several within the governing party think this is a battle they ought to have avoided, not least because of the important place the community pub plays in national life.
Richard Quigley, the MP for the Isle of Wight West, who also operates a chip shop on the island, argued: "We promised for two years to the sector that we are going to help you out but then they get hit by this revaluation. We must not see taxes being reduced for large multinational companies but up 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 significance to neighborhoods. "There's nothing any of us like better than going to the pub for a pint, myself included," the PM remarked in February.
Yet strategists liken antagonising publicans to taking on NHS workers in terms of popular sentiment.
Joe Twyman, co-founder of the polling firm Deltapoll, explained: "In fiction and in fact, pubs have a special place in the public imagination.
"For many people the neighborhood inn is regarded as an key pillar of the locality, even if a significant number of those same people will infrequently drink there.
"The hazard with alienating pubs is that your opponents will quickly accuse you of undermining the foundation of this country and its history, particularly in rural areas. And they will be able to produce many powerful examples to prove their point."
'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" campaign. Lennox reports he has handed out notices to nearly 1,000 premises and is mailing 100 more every day.
His campaign has gained the endorsement of several prominent figures, such as broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a brewpub in north Londonโthough the latter has clarified he will not refuse service to Labour MPs.
"We have long sought help for a very long time," explained Lennox, who is calling for a short-term VAT reduction. "Ministers is dressing this up as a support measure but that's not what people are seeing, and that is the thing that has frustrated so many people."
Several within the industry think a protest singling out individual Labour MPs is could backfire. "I'm not sure it's a good idea to ban the very individuals we should be trying to persuade and influence," commented Corbett-Collins.
When questioned this week, the Exchequer highlighted the assistance being provided to hospitality. "We're protecting the hospitality industry with the budget's ยฃ4.3bn funding. This is in addition to our efforts to simplify licensing, maintaining our cut to alcohol duty on draught pints, and limiting corporation tax," a spokesperson said.
The business owners, on the other hand, are in not the frame of mind to compromise, even if alienating MPs