'Entry Denied!': Labour's Dispute with Local Inns Signals a Upcoming Year Problem.

Labour MPs heading back to their constituencies this end of the week might breathe a sigh of respite as a hectic political term concludes. However, for those planning to frequent their neighborhood bar for a casual pint, goodwill could be scarce. In fact, some may discover they are not allowed through the door.

For weeks, businesses across the country have been putting up signs that declare "No Labour MPs" in objection to changes in business rates unveiled by the Finance Minister, Rachel Reeves, in her autumn financial statement.

This campaign translates to one fewer escape for many government backbenchers seeking refuge from the harsh truth of their party's unpopularity. MPs now say commonplace animosity in community settings after a difficult first year and a half that has seen the party's ratings drop sharply from around a third to roughly under a fifth.

"It's challenging being the MP of the constituency you have forever lived in," commented one. "The local pub is where we went with the kids and just be a regular family. But the past occasions we've just ended up being shouted at by other patrons. Now I'm not even sure we'll be able to get in."

This palpable disappointment is visible in a social media post by Tom Hayes, the Labour MP for Bournemouth East, addressing being barred from one of his regular haunts, the Larderhouse.

"We're in the festive period," he noted. "But the Larderhouse and other establishments with a 'MPs Not Welcome' notice in the window, they are undermining the community spirit that local entrepreneurs have helped to nourish." He added, "Politics must be kept politics off the main street altogether, but especially at Christmas."

'Pubs Have a Special Place in the Public Consciousness

After a difficult few years marked by rising expenses, the pandemic, and changing habits, publicans were optimistic the budget might bring some relief—specifically through a long-promised revamp of the commercial tax system.

But the chancellor disappointed those hopes, keeping the system largely unchanged and opting rather to reduce headline rates and allocate £4.3bn over three years in financial support for the retail and hospitality sectors.

While perhaps a supportive move, the benefit of that funding pledge has been overshadowed by the effect of a periodic property reassessment, which has caused the valuation of hospitality venues to increase sharply from their Covid-affected lows.

From next April, business taxes are set to jump by more than double for the typical hotel and over three-quarters for a public house, in contrast to just four percent for big grocery chains and seven percent for distribution warehouses. Whitbread, which owns pubs, restaurants and the Premier Inn hotel chain, states it will face an extra tax bill of between £40m and £50m as a result.

Joe Butler, the landlord at the Tollemache Arms in Northamptonshire, said: "With the click of a finger, the valuation of our business has doubled. That's going to be a massive rise for us."

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

"A pint of beer is now prohibitively expensive. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now verging on £7 a pint," Butler stated.

Simultaneously, Covid-era tax breaks are ending, while hospitality operators are still coping with increases in employer contributions and the living wage from the previous budget.

"If you wanted to write the worst possible financial plan for the hospitality sector and its customers, you would have come close to what came out," stated Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.

Many within the Labour party feel this is a confrontation they should not have picked, not least because of the important role the local 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, said: "We pledged for two years to pubs and hospitality businesses that we are going to offer relief but then they get affected by this revaluation. We can't have rates going down for big corporations but up for small restaurants and pubs."

Observers note that Keir Starmer himself has long been a regular at his local, the Pineapple in north London, and often references their value to neighborhoods. "There is little we prefer than going to the pub for a pint, myself included," the prime minister stated in February.

However pollsters liken picking a fight with publicans to challenging NHS workers in terms of political risk.

Joe Twyman, director of the public opinion consultancy Deltapoll, noted: "From soap operas to real life, pubs have a unique position in the national consciousness.

"To a lot of individuals the local pub is regarded as an important part of the locality, even if a good proportion of those same people will infrequently drink there.

"The danger for politicians with making an enemy of pubs is that your political rivals will readily accuse you of attacking the core of this nation and its heritage, especially in the countryside. And they will be able to produce many emotive examples to prove their point."

'A Matter of Principle'

One such instance is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "No Labour MPs" campaign. Lennox states he has handed out stickers to nearly 1,000 premises and is sending out 100 more every day.

His action has received support from several prominent figures, such as television presenter Jeremy Clarkson, who runs a pub called the Farmer's Dog, and pop star Rick Astley, who part-owns a brewpub in north London—although the latter has said he will not refuse service to Labour MPs.

"We have pleaded for help for a considerable period," said Lennox, who is advocating for a short-term VAT reduction. "The Treasury is presenting this as a relief package but that's not what people are feeling, and that is the thing that has angered so many people."

Some within the sector think a campaign singling out individual politicians is likely to have unintended consequences. "I'm not sure it's a wise move to ban the exact people we should be trying to invite in and speak to," said Corbett-Collins.

When asked this week, the Treasury spoke of the package being made available to the sector. "We have aided the hospitality industry with the budget's £4.3bn funding. This is in addition to our initiatives to ease licensing, maintaining our reduction to alcohol duty on draught pints, and limiting corporation tax," a official commented.

The landlords, nevertheless, are in no mood to compromise, even if alienating MPs

Roberto Arnold
Roberto Arnold

A seasoned crypto analyst with over a decade of experience in blockchain technology and digital finance, passionate about educating investors.