Pubs and Restaurants Ban Labour MPs Over Business Rates Row

Pub landlords and restaurant owners across the United Kingdom have initiated a campaign to bar Labour MPs from their establishments, citing concerns over proposed tax increases that they believe threaten the hospitality industry. The movement, which started last week, has seen approximately 50 venues display “No Labour MPs” stickers, signaling their discontent with government policies they argue could lead to the industry’s collapse.

The campaign was spearheaded by Andy Lennox, the landlord of the Old Thatch pub in Dorset. He stated that the initiative is gaining traction nationwide, with requests for stickers and guidance coming from locations as far away as Clacton-on-Sea. Lennox expressed frustration over the Labour Government’s handling of the situation, asserting, “They’re taxing hospitality into extinction, and dressing it up as cutting rates and helping us.”

According to the industry body UKHospitality, the hospitality sector faces potential tax hikes of up to 76% over the next three years, following the end of Covid-era business rates relief in April. This relief has been crucial for many businesses struggling to recover after the pandemic, and its termination could force establishments to cut operating hours or even close entirely, resulting in significant job losses.

In response to these developments, Rachel Reeves, the Chancellor of the Exchequer, announced in her autumn Budget a permanent 5% tax cut for hospitality and retail businesses. She referred to this as the “lowest tax rates since 1991.” Critics, however, argue that this measure will do little to mitigate the substantial increases anticipated once relief measures conclude.

The campaign has garnered support from various local business owners, including James Fowler, who runs the Larder House in Bournemouth. Fowler has implemented the ban on his local MP, Tom Hayes, stating, “It’s not personal. He’s a great local MP – I voted for him – but this isn’t a local issue.” He emphasized the campaign’s goal of fostering national dialogue about the challenges faced by the hospitality sector.

Hayes has publicly criticized the ban, arguing that it hinders his ability to effectively represent business owners and address their needs with the government. He remarked, “Banning MPs stops me doing my job. I can’t listen to business owners, represent them to the Government, and secure the powers and support they need.”

The Treasury has been contacted for comment regarding the ongoing situation and the implications of the tax increases on hospitality businesses. As the campaign unfolds, it highlights the growing tensions between local business interests and government tax policies, making it a significant point of discussion across the UK.