'You're Barred!': The Government's Clash with Pubs Signals a Upcoming Year Problem.

Government ministers heading back to their home districts this weekend might experience a wave of respite as a chaotic parliamentary session concludes. Yet, for those planning to visit their community tavern for a casual pint, holiday spirit could be in short supply. Indeed, some may discover they are not allowed through the door.

In recent weeks, establishments throughout the nation have been posting signs that proclaim "MPs Barred" in protest to revisions in business rates announced by the Finance Minister, Rachel Reeves, in her latest budget.

This campaign results in one fewer haven for many Labour MPs seeking refuge from the difficult situation of their public disapproval. MPs now say frequent animosity in everyday places after a challenging first 18 months that has seen the government's support drop sharply from around 34% to roughly 18%.

"It is difficult being the MP of the area you have always lived in," remarked one. "That pub is where we would go with the kids and just be a normal family. But the recent visits we've just ended up being shouted at by other drinkers. Now I'm not even sure we'll be able to get in."

This feeling of frustration is clear in a recent video by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being banned from one of his local pubs, the Larderhouse.

"It's meant to be a time of joy," he said. "However the Larderhouse and other establishments with a 'MPs Not Welcome' sticker in the window, they are damaging the community spirit that local entrepreneurs have helped to foster." He continued, "Politics must be kept politics off the high street completely, but above all at Christmas."

'Pubs Have a Special Place in the National Identity

After a tough times marked by economic pressures, the pandemic, and changing habits, publicans were anticipating the budget might bring some assistance—particularly through a overdue reform of the business rates system.

Yet the chancellor dashed those expectations, leaving the system unreformed and opting rather to lower headline rates and allocate £4.3bn over three years in financial support for the retail and hospitality sectors.

While seemingly a positive step, the impact of that support package has been overshadowed by the effect of a periodic property revaluation, which has caused the rateable value of pubs and restaurants to surge from their Covid-affected lows.

Starting from next April, business taxes are set to rise by 115% for the average hotel and 76% for a public house, versus just four percent for big grocery chains and seven percent for logistics centres. A major hospitality group, 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 consequence.

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

This financial strain on publicans is directly passed on to the price of a punter's pint.

"A pint of beer is now too high. When we first started here 10 years ago, we charged £3.40 a pint. We're now approaching £7 a pint," Butler said.

Simultaneously, Covid-era tax breaks are ending, while hospitality operators are still coping with increases in national insurance and the living wage from last year's budget.

"If you wanted to write the worst possible budget for the hospitality sector and its customers, you wouldn't have got far away from what came out," stated Ash Corbett-Collins, the chairperson of Camra, the campaign for real ale.

Several within the Labour party think this is a battle they could have sidestepped, not least because of the vital role the neighborhood inn holds in national life.

Richard Quigley, the MP for the Isle of Wight West, who also operates a fish and chip shop on the island, commented: "We promised for two years to the sector that we are going to help you out but then they get slapped with this revaluation. We cannot allow rates being reduced for large multinational companies but increasing for small restaurants and pubs."

Some highlight that Keir Starmer himself has historically been a frequent patron at his local pub, 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.

Yet strategists compare picking a fight with pub owners to challenging NHS workers in terms of public perception.

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

"In the public's view the local pub is perceived to be an important part of the locality, even if a large segment of those same people will infrequently drink there.

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

'Not a Personal Vendetta'

One such example is Andy Lennox, the landlord at the Old Thatch pub in Wimborne, Dorset, and the coordinator of the "MPs Barred" campaign. Lennox says he has distributed stickers to nearly 1,000 premises and is dispatching 100 more every day.

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

"We have been asking for relief for a very long time," said Lennox, who is demanding a short-term VAT reduction. "The government is spinning this as a support measure but that's not what people are feeling, and that is the thing that has angered so many people."

A number within the industry believe a protest banning individual Labour MPs is could be counterproductive. "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 pressed this week, the Exchequer pointed to the package being provided to hospitality. "We have aided the hospitality industry with the budget's £4.3bn funding. This follows our initiatives to simplify licensing, keeping our cut to alcohol duty on beer from the tap, and limiting corporation tax," a representative commented.

The landlords, on the other hand, are in no mood to back down, even if losing MPs

Robert Spencer
Robert Spencer

A seasoned entrepreneur and startup advisor with over a decade of experience in the UK business scene.