'Not Welcome!': The Government's Battle with Local Inns Signals a Upcoming Year Problem.

Elected representatives heading back to their home districts this end of the week might feel a sense of relief as a turbulent parliamentary session concludes. Yet, for those hoping to frequent their community tavern for a casual drink, holiday spirit could be in short supply. Indeed, some may find they are barred from entry.

In recent weeks, establishments across the country have been posting signs that state "Labour MPs Not Welcome" in demonstration to revisions in commercial property taxes unveiled by the Chancellor, Rachel Reeves, in her most recent budget.

This campaign translates to one fewer retreat for many elected officials seeking refuge from the difficult situation of their slumping poll ratings. Backbenchers now describe commonplace antagonism in everyday places after a challenging first year and a half that has seen the government's support plummet from around a third to roughly 18%.

"It is difficult being the representative of the constituency you have forever lived in," said one. "Our neighborhood bar is where we went with the kids and just be a normal family. But the last few times we've just ended up being verbally abused by other customers. Now I'm not even sure we'll be able to get in."

This sense of dismay is evident in a social media post by Tom Hayes, the Labour MP for Bournemouth East, lamenting being banned from one of his local pubs, the Larderhouse.

"We're in the festive period," he said. "But the Larderhouse and other businesses with a 'MPs Not Welcome' sticker in the window, they are eroding the welcoming atmosphere that business owners have helped to nourish." He added, "We have to get politics off the main street full stop, but especially at Christmas."

A Cherished Institution in the British Psyche

After a difficult few years marked by high costs, the COVID-19 crisis, and changing habits, publicans were hopeful the budget might bring some assistanceโ€”particularly through a much-anticipated overhaul of the business rates system.

But the chancellor disappointed those hopes, leaving the system largely unchanged and choosing instead to lower the multiplier and commit ยฃ4.3bn over three years in financial support for the shops, pubs, and restaurants sectors.

While seemingly a positive step, the benefit of that support package has been minimized by the effect of a three-yearly property revaluation, which has caused the taxable value of hospitality venues to surge from their pandemic-era lows.

Beginning in next April, rates are set to increase by 115% for the average hotel and 76% for a pub, in contrast to just 4% for big grocery chains and seven percent for logistics centres. A major hospitality group, which operates pubs, restaurants and the Premier Inn hotel chain, estimates it will face an extra tax bill of between ยฃ40m and ยฃ50m as a outcome.

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

This pressure on publicans is inevitably passed on to the price of a punter's pint.

"The price of a pint is now too high. When we first became landlords 10 years ago, we charged ยฃ3.40 a pint. We're now nearly ยฃ7 a pint," Butler said.

At the same time, Covid-era tax breaks are falling away, while hospitality operators are still managing rises in national insurance and the minimum wage from the previous budget.

"If you wanted to write the most damaging financial plan for pubs and consumers, you would have come close to what came out," stated Ash Corbett-Collins, the chair of Camra, the consumer organisation.

Many within the governing party believe this is a battle they could have sidestepped, not least because of the important place the local pub holds in British culture.

Richard Quigley, the Labour MP for the Isle of Wight West, who also operates a chip shop on the island, argued: "We pledged for two years to pubs and hospitality businesses that we are going to offer relief but then they get hit by this new assessment. We must not see taxes going down for big corporations but up for local venues."

Some note that Keir Starmer himself has often been a regular at his local, 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 stated in February.

However strategists compare confronting publicans to challenging NHS workers in terms of political risk.

Joe Twyman, director of the public opinion consultancy Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a special place in the public imagination.

"For many people the local pub is perceived to be an key pillar of the locality, even if a significant number of those same people will rarely actually drink there.

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

'A Matter of Principle'

One such case is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "MPs Barred" initiative. Lennox reports he has handed out notices to nearly 1,000 venues and is sending out 100 more every day.

His campaign has been backed by a number of high-profile figures, such as broadcaster Jeremy Clarkson, who owns a pub called the Farmer's Dog, and pop star Rick Astley, who part-owns a bar in north Londonโ€”although the latter has indicated he will not refuse service to Labour MPs.

"We have been asking for help for a very long time," said Lennox, who is demanding a temporary VAT reduction. "The Treasury is spinning this as a support measure but that's not what people are experiencing, and that is the thing that has aggrieved so many people."

A number within the hospitality trade feel a campaign singling out individual politicians is could have unintended consequences. "I'm not sure it's a good idea to ban the exact people we should be trying to engage with and speak to," argued Corbett-Collins.

When questioned this week, the government department spoke of the support being offered to hospitality. "We're protecting the hospitality industry with the budget's ยฃ4.3bn support package. This follows our efforts to ease licensing, maintaining our reduction to alcohol duty on beer from the tap, and limiting corporation tax," a representative commented.

The landlords, nevertheless, are in no mood to back down, even if losing MPs

Alyssa Gonzalez
Alyssa Gonzalez

A seasoned marketing strategist with over a decade of experience in the Middle East, passionate about helping businesses thrive digitally.