'Entry Denied!': Labour's Battle with Pubs Signals a New Year Challenge.

Government ministers returning to their home districts this end of the week might breathe a sigh of respite as a chaotic parliamentary session ends. But, for those looking to frequent their neighborhood bar for a relaxing pint, goodwill could be in short supply. In fact, some may discover they are not allowed through the door.

In recent weeks, establishments across the country have been displaying signs that state "Labour MPs Not Welcome" in protest to revisions in business rates revealed by the Finance Minister, Rachel Reeves, in her most recent budget.

This protest translates to one fewer retreat for many government backbenchers seeking refuge from the harsh truth of their party's unpopularity. MPs now say commonplace antagonism in public spaces after a challenging first period that has seen the government's support fall from around 34% to roughly under a fifth.

"It can be hard being the representative of the constituency you have forever lived in," remarked one. "Our neighborhood bar 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 shouted at by other drinkers. Now I'm not even sure we'll be able to be served."

This sense of dismay is clear in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, lamenting being banned from one of his regular haunts, the Larderhouse.

"It's meant to be a time of joy," he noted. "Yet the Larderhouse and other businesses with a 'No Labour MPs' sticker in the window, they are eroding the welcoming atmosphere that publicans have helped to foster." He added, "We need to remove politics off the high street altogether, but above all at Christmas."

'Pubs Have a Special Place in the Public Consciousness

After a tough times marked by rising expenses, the pandemic, and evolving social trends, landlords were optimistic the budget might bring some assistance—particularly through a long-promised overhaul of the business rates system.

Yet the chancellor poured cold water on those hopes, keeping the system largely unchanged and opting rather to lower headline rates and allocate £4.3bn over three years in funding for the shops, pubs, and restaurants sectors.

While perhaps a supportive move, the impact of that support package has been dwarfed by the effect of a three-yearly property reassessment, which has caused the taxable value of hospitality venues to spike from their Covid-affected lows.

Starting from next April, business taxes are set to rise by 115% for the typical hotel and over three-quarters for a public house, versus just four percent for big grocery chains and seven percent for distribution warehouses. A major hospitality group, which owns multiple brands, states it will face an additional tax bill of between £40m and £50m as a outcome.

Joe Butler, the publican at the Tollemache Arms in Northamptonshire, explained: "Virtually instantly, the valuation of our business has increased twofold. That's going to be a huge increase for us."

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

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

At the same time, pandemic-related tax reliefs are falling away, while hospitality operators are still absorbing increases in national insurance and the minimum wage from the previous budget.

"If you tried to design the most damaging financial plan for the hospitality sector and its customers, you would have come close to what was announced," remarked Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Many within the Labour party believe this is a confrontation they could have sidestepped, not least because of the important role the local pub plays in national life.

Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a chip shop on the island, said: "We pledged for two years to the sector that we are going to provide support but then they get slapped with this revaluation. We must not see rates going down for big corporations but up for small restaurants and pubs."

Some highlight that Keir Starmer himself has long been a frequent patron at his local, the Pineapple in north London, and frequently speaks of their value to neighborhoods. "There's nothing any of us like better than going to the local for a drink, myself included," the prime minister remarked in February.

Yet strategists compare antagonising publicans to taking on NHS workers in terms of popular sentiment.

Joe Twyman, co-founder of the public opinion consultancy Deltapoll, said: "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 infrequently drink there.

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

'A Matter of Principle'

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 provided stickers to nearly 1,000 premises and is dispatching 100 more every day.

His protest has been backed by several high-profile figures, including broadcaster Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who has a stake in a brewpub in north London—however the latter has clarified he will not refuse service to Labour MPs.

"We have pleaded for help for a considerable period," stated Lennox, who is demanding a temporary VAT reduction. "The government is spinning this as a support measure but that's not what people are experiencing, and that is the thing that has frustrated so many people."

Several within the sector feel a campaign singling out individual politicians is could backfire. "It's questionable it's a good idea to ban the exact people we should be trying to persuade and influence," commented Corbett-Collins.

When questioned this week, the government department highlighted the support being offered to hospitality. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn investment. This comes on top of our work to simplify licensing, keeping our cut to alcohol duty on draught pints, and capping corporation tax," a representative said.

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