'Not Welcome!': The Government's Dispute with Public Houses Promises a New Year Problem.
Elected representatives visiting their local areas this end of the week might breathe a sigh of relief as a turbulent parliamentary session ends. But, for those looking to stop by their community tavern for a casual drink, festive cheer could be scarce. Indeed, some may realize they are unwelcome inside.
Over the past few weeks, venues throughout the nation have been putting up signs that state "MPs Barred" in objection to adjustments in business rates announced by the Chancellor, Rachel Reeves, in her autumn budget.
This campaign results in one fewer escape for many government backbenchers seeking solace from the bruising reality of their public disapproval. Backbenchers now describe frequent animosity in everyday places after a challenging first year and a half that has seen the party's ratings 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 would go with the kids and just be a regular family. But the past occasions we've just ended up being shouted at by other customers. Now I'm not even sure we'll be able to enter."
This feeling of frustration is evident in a recent video by Tom Hayes, the Member of Parliament for Bournemouth East, addressing being refused entry to one of his regular haunts, the Larderhouse.
"It's the Christmas season," he noted. "Yet the Larderhouse and other establishments with a 'MPs Not Welcome' notice in the window, they are damaging the welcoming atmosphere that local entrepreneurs have helped to nourish." He continued, "We need to remove politics off the town centre altogether, but above all at Christmas."
A Cherished Institution in the British Psyche
After a tough times marked by rising expenses, the COVID-19 crisis, and changing habits, landlords were anticipating the chancellor's statement might bring some assistance—namely through a long-promised overhaul of the business rates system.
Yet the chancellor disappointed those expectations, keeping the system unreformed and opting rather to lower the multiplier and allocate £4.3bn over three years in funding for the retail and hospitality sectors.
While seemingly a positive step, the benefit of that support package has been dwarfed by the effect of a three-yearly property revaluation, which has caused the taxable value of pubs and restaurants to spike from their pandemic-era lows.
Starting from next April, business taxes are set to rise by 115% for the average hotel and over three-quarters for a pub, compared with just four percent for large supermarkets and seven percent for logistics centres. Whitbread, which owns 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, said: "Literally overnight, the value of our business has increased twofold. That's going to be a significant burden for us."
This pressure on publicans is directly reflected in the price of a punter's pint.
"A pint of beer is now unaffordable. When we first became landlords 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler said.
Simultaneously, pandemic-related tax reliefs are being phased out, while hospitality operators are still absorbing rises in employer contributions and the living wage from last year's budget.
"To create the worst possible budget for pubs and consumers, you couldn't have done much worse than what was announced," said Ash Corbett-Collins, the chair of Camra, the consumer organisation.
Several within the governing party think this is a battle they could have sidestepped, not least because of the vital place the neighborhood inn plays in British culture.
Richard Quigley, the Labour MP for the Isle of Wight West, who also runs a chip shop on the island, commented: "We said for two years to pubs and hospitality businesses that we are going to provide support but then they get hit by this new assessment. We can't have taxes being reduced for big corporations but increasing for independent businesses."
Observers point out that Keir Starmer himself has historically been a regular at his local pub, the Pineapple in north London, and regularly mentions their value to neighborhoods. "There's nothing any of us like better than going to the local for a pint, myself included," the prime minister remarked in February.
Yet strategists liken antagonising pub owners to challenging NHS workers in terms of political risk.
Joe Twyman, co-founder of the polling firm Deltapoll, said: "From the Queen Vic to the Rovers Return, pubs have a special place in the public imagination.
"To a lot of individuals the local pub is regarded as an key pillar of the locality, even if a large segment of those same people will rarely actually drink there.
"The hazard with making an enemy of pubs is that your opponents will quickly accuse you of undermining the foundation of this country and its heritage, particularly in rural areas. And they will be able to produce many powerful examples to prove their point."
'A Matter of Principle'
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 handed out stickers to nearly 1,000 venues and is dispatching 100 more every day.
His campaign has received support from a number of high-profile figures, including television presenter 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—though the latter has said he will not formally bar Labour MPs.
"We have pleaded for relief for a very long time," explained Lennox, who is calling for a short-term VAT reduction. "Ministers is spinning this as a relief package but that's not what people are feeling, and that is the thing that has frustrated so many people."
Several within the industry believe a campaign targeting individual Labour MPs is may be counterproductive. "I'm not sure it's a wise move to ban the very individuals we should be trying to engage with and speak to," commented Corbett-Collins.
When asked this week, the Treasury pointed to the package being offered to hospitality. "We are supporting pubs, restaurants and cafes with the budget's £4.3bn investment. This comes on top of our work to ease licensing, keeping our cut to alcohol duty on draught pints, and limiting corporation tax," a official commented.
The landlords, on the other hand, are in not the frame of mind to yield, even if alienating MPs