'Not Welcome!': Labour's Dispute with Local Inns Forecasts a New Year Challenge.
Government ministers returning to their local areas this weekend might experience a wave of relief as a hectic political term ends. But, for those hoping to frequent their neighborhood bar for a restorative beer, goodwill could be lacking. Actually, some may find they are unwelcome inside.
Over the past few weeks, establishments across the country have been displaying signs that declare "No Labour MPs" in protest to adjustments in business rates unveiled by the Chancellor, Rachel Reeves, in her autumn budget.
This campaign translates to one fewer escape for many Labour MPs seeking refuge from the difficult situation of their party's unpopularity. Representatives now say regular hostility in everyday places after a challenging first period that has seen the government's support fall from around 34% to roughly under a fifth.
"It can be hard being the MP of the area you have always lived in," said one. "Our neighborhood bar is where we would go with the kids and just be a ordinary family. But the recent visits we've just ended up being verbally abused by other patrons. Now I'm not even sure we'll be able to enter."
This feeling of frustration is clear in a recent video by Tom Hayes, the Labour MP for Bournemouth East, lamenting being barred from one of his regular haunts, the Larderhouse.
"We're in the festive period," he said. "However the Larderhouse and other establishments with a 'MPs Not Welcome' sticker in the window, they are undermining the welcoming atmosphere that business owners have helped to foster." He went on, "We have to get politics off the main street completely, but particularly at Christmas."
A Cornerstone in the British Psyche
After a difficult few years marked by economic pressures, the COVID-19 crisis, and changing habits, landlords were optimistic the budget might bring some assistance—namely through a much-anticipated reform of the business rates system.
Yet the chancellor poured cold water on those hopes, keeping the system unreformed and choosing instead to lower the multiplier and commit £4.3bn over three years in financial support for the retail and hospitality sectors.
While seemingly a supportive move, the benefit of that funding pledge 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, rates are set to jump by more than double for the typical hotel and over three-quarters for a pub, in contrast to just four percent for big grocery chains and 7% for logistics centres. Whitbread, which owns multiple brands, says it will face an additional tax bill of between £40m and £50m as a consequence.
Joe Butler, the publican at the Tollemache Arms in Northamptonshire, commented: "Literally overnight, the valuation of our business has increased twofold. That's going to be a significant burden for us."
This burden on publicans is certainly felt in the price of a customer's pint.
"The price of a pint is now unaffordable. When we first started here 10 years ago, we charged £3.40 a pint. We're now nearly £7 a pint," Butler stated.
At the same time, pandemic-related tax breaks are falling away, while sector businesses are still coping with rises in employer contributions and the living wage from last year's budget.
"To create the worst possible financial plan for the hospitality sector and its customers, you couldn't have done much worse than what we saw," said Ash Corbett-Collins, the chairperson of Camra, the consumer organisation.
Several within the Labour party believe this is a confrontation they could have sidestepped, not least because of the important place the community pub holds in British culture.
Richard Quigley, the MP for the Isle of Wight West, who also operates a chip shop on the island, argued: "We promised for two years to the sector that we are going to help you out but then they get affected by this new assessment. We must not see rates being reduced for large multinational companies but increasing for small restaurants and pubs."
Observers highlight that Keir Starmer himself has often been a regular at his local pub, the Pineapple in north London, and frequently speaks of their importance to local communities. "There is little we prefer than going to the pub for a drink, myself included," the prime minister remarked in February.
However political analysts liken picking a fight with pub owners to doing so with 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 cherished status in the British psyche.
"To a lot of individuals the neighborhood inn is seen as an integral component of the community, even if a good proportion of those same people will seldom drink there.
"The political risk with alienating pubs is that your opponents will readily accuse you of undermining the core of this nation and its history, notably in rural areas. And they will be able to produce many heartfelt examples to prove their point."
'Nothing Personal'
One such instance is Andy Lennox, the publican at the Old Thatch pub in Wimborne, Dorset, and the organiser of the "No Labour MPs" initiative. Lennox reports he has provided signs to nearly 1,000 establishments and is mailing 100 more every day.
His protest has received support from a number of high-profile figures, including television presenter Jeremy Clarkson, who owns a pub called the Farmer's Dog, and pop star Rick Astley, who has a stake in a bar in north London—although the latter has clarified he will not formally bar Labour MPs.
"We have pleaded for support for a years," explained Lennox, who is demanding a short-term 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 frustrated so many people."
Several within the industry think a protest banning individual politicians is could have unintended consequences. "I'm not sure it's a wise move to ban the precise representatives we should be trying to persuade and influence," said Corbett-Collins.
When pressed this week, the government department spoke of the support being made available to the sector. "We're protecting pubs, restaurants and cafes with the budget's £4.3bn funding. This comes on top of our initiatives to simplify licensing, keeping our cut to alcohol duty on beer from the tap, and capping corporation tax," a representative said.
The landlords, nevertheless, are in little mood to yield, even if alienating MPs