'You're Barred!': The Government's Dispute with Pubs Forecasts a New Year Problem.
Elected representatives visiting their constituencies this end of the week might experience a wave of relief as a hectic political term concludes. But, for those planning to visit their neighborhood bar for a casual beer, goodwill could be in short supply. Actually, some may find they are not allowed through the door.
Over the past few weeks, venues nationwide have been posting signs that proclaim "MPs Barred" in protest to adjustments in business rates revealed by the Finance Minister, Rachel Reeves, in her autumn budget.
This protest translates to one fewer haven for many government backbenchers seeking refuge from the difficult situation of their public disapproval. Representatives now describe regular hostility in public spaces after a rocky first year and a half that has seen the party's ratings fall from around 34% to roughly 18%.
"It can be hard being the representative of the area you have forever lived in," commented one. "That pub is where we used to go with the kids and just be a regular family. But the past occasions we've just ended up being verbally abused by other patrons. Now I'm not even sure we'll be able to enter."
This palpable disappointment is visible in a online clip by Tom Hayes, the Member of Parliament for Bournemouth East, lamenting being refused entry to one of his local pubs, the Larderhouse.
"We're in the festive period," he said. "However the Larderhouse and other establishments with a 'MPs Not Welcome' notice in the window, they are eroding the community spirit that publicans have helped to cultivate." He added, "We have to get politics off the main street altogether, but especially at Christmas."
A Cornerstone in the Public Consciousness
After a challenging period marked by high costs, the pandemic, and changing habits, landlords were anticipating the budget might bring some assistance—particularly through a long-promised overhaul of the business rates system.
However the chancellor disappointed those expectations, keeping the system unreformed and opting rather to lower headline rates and commit £4.3bn over three years in funding for the retail and hospitality sectors.
While perhaps a positive step, the benefit of that funding pledge has been minimized 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, rates are set to jump by more than double for the average hotel and 76% for a pub, compared with just 4% for big grocery chains and seven percent for distribution warehouses. A major hospitality group, which operates pubs, restaurants and the Premier Inn hotel chain, estimates it will face an additional tax bill of between £40m and £50m as a outcome.
Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, commented: "Virtually instantly, the worth of our business has doubled. That's going to be a huge increase for us."
This pressure on business owners is inevitably passed on to the price of a customer's pint.
"The cost of a drink is now too high. When we first took this pub on 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler added.
At the same time, Covid-era tax discounts are ending, while sector businesses are still coping with increases in employer contributions and the living wage from the previous budget.
"To create the worst possible budget for the hospitality sector and its customers, you couldn't have done much worse than what was announced," said Ash Corbett-Collins, the chair of Camra, the consumer organisation.
A number within the governing party think this is a confrontation they could have sidestepped, not least because of the central place the neighborhood inn plays in national life.
Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a fish and chip shop on the island, said: "We said for two years to the sector that we are going to provide support but then they get hit by this revaluation. We can't have taxes being reduced for large multinational companies but increasing for small restaurants and pubs."
Some point out that Keir Starmer himself has often been a frequent patron at his local, the Pineapple in north London, and frequently speaks of their importance 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.
But pollsters compare picking a fight with publicans to challenging NHS workers in terms of public perception.
Joe Twyman, co-founder of the polling firm Deltapoll, explained: "From the Queen Vic to the Rovers Return, pubs have a cherished status in the public imagination.
"To a lot of individuals the neighborhood inn is perceived to be an key pillar of the community, even if a large segment of those same people will seldom drink there.
"The political risk with making an enemy of pubs is that your critics will readily accuse you of assaulting the very heart of this country and its heritage, notably in the countryside. And they will be able to produce many heartfelt examples to prove their point."
'Nothing Personal'
One such instance 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 distributed notices to nearly 1,000 establishments and is mailing 100 more every day.
His protest has been backed by a number of high-profile figures, such as television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and singer Rick Astley, who part-owns a bar in north London—though the latter has clarified he will not refuse service to Labour MPs.
"We have pleaded for help for a very long time," said Lennox, who is calling for a short-term VAT reduction. "The government is dressing this up as a support measure but that's not what people are seeing, and that is the thing that has angered so many people."
A number within the industry believe a protest singling out individual politicians is could be counterproductive. "I doubt it's a good idea to ban the precise representatives we should be trying to engage with and lobby," said Corbett-Collins.
When pressed this week, the Treasury highlighted the support being offered to the sector. "We're protecting the hospitality industry with the budget's £4.3bn investment. This follows our work to ease licensing, maintaining our cut to alcohol duty on draught pints, and limiting corporation tax," a representative commented.
The business owners, nevertheless, are in no mood to yield, even if losing MPs