Pub Owners Ban Labour MPs Over Tax Hikes on Hospitality

Hospitality venues across the United Kingdom have begun a campaign to ban Labour MPs from their establishments, citing concerns over proposed tax increases that threaten the industry’s viability. The initiative, described by local pub landlords and restaurant owners as “taxing hospitality into extinction,” follows a significant rise in business rates set to take effect in April 2024.

The campaign was spearheaded by Andy Lennox, landlord of the Old Thatch pub in Dorset. He reported that around 50 venues have already committed to displaying “No Labour MPs” stickers on their doors and windows. Lennox expressed frustration with the Labour Government’s policies, stating, “They’re taxing hospitality into extinction, and dressing it up as cutting rates and helping us.”

As the government prepares to end COVID-era business rates relief, the hospitality sector anticipates a staggering increase in rates, projected at 76% over the next three years. This substantial jump has raised alarms within the industry, prompting UKHospitality to issue warnings about the potential consequences. The organization highlighted that the termination of these reliefs could lead to reduced operating hours and, in worst-case scenarios, business closures, resulting in significant job losses.

In an effort to counteract this perception, Chancellor Rachel Reeves announced a permanent 5% tax cut for hospitality and retail businesses in her autumn Budget. She characterized this as the lowest tax rate since 1991. However, industry leaders argue that this measure does little to alleviate the financial strain posed by the forthcoming rate hikes.

The initiative has garnered support from various venue owners, including James Fowler, who manages the Larder House in Bournemouth. Fowler recently declared his support for the ban and specifically excluded his local MP, Tom Hayes, from his restaurant. He remarked, “I told Tom it wasn’t personal. He’s a great local MP – I voted for him – but this isn’t a local issue.” He emphasized the campaign’s national scope, inviting discussions across the country.

Despite the campaign’s growing momentum, Hayes has criticized the move, arguing that it hampers his ability to effectively represent his constituents. He stated, “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 approached for comment regarding the escalating tensions between local business owners and Labour MPs as the hospitality sector braces itself for dramatic financial changes. The outcome of this campaign and the government’s response remain to be seen as venues nationwide rally to protect their interests.