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Downing Street has reaffirmed the government’s support for pubs amidst a growing movement where a rising number of pubs, restaurants, and hotels across the UK are joining a campaign to ban Labour MPs from entering their premises. This boycott, which began about a week ago, has seen over 250 venues sign up, including the Old Thatch in Dorset. Landlord Andy Lennox of the Old Thatch described the protest as a measure of last resort after numerous appeals for tax reductions were ignored, resulting instead in increased taxes on the hospitality sector.
In response, the Prime Minister’s official spokesperson emphasized that the Chancellor has introduced a financial support package worth £4.3 billion aimed at pubs, restaurants, and cafes, highlighting hospitality as a crucial sector to the economy. The spokesman outlined the measures taken, noting: “Without this intervention pubs would have faced a 45% rise in bills next year. We’ve cut that down to just 4%.” Additional steps include the continuation of the draft beer duty cut, more flexible licensing for pavement drinking and events, and a cap on corporation tax. He stressed these efforts demonstrate that the government is backing the hospitality industry, not abandoning it. However, UKHospitality has challenged the government’s claims concerning both the size and impact of the support package.
Andy Lennox, who is closely involved in the campaign, explained to the BBC that the push to exclude Labour MPs, including the Prime Minister, stems from the government’s failure to engage with the hospitality sector’s demands. He detailed the extensive, well-organized lobbying efforts the industry undertook, such as reaching out to every Member of Parliament and personally delivering letters to the Chancellor’s residence. Lennox criticized the government for ignoring their concerns and instead raising taxes: “What’s really angered people is they they’re acting as if they haven’t – it’s as if somebody has pushed the wrong button and, instead of taxing Amazon and the warehouses they’re taxing us instead.” He added, “We have been imploring our MPs for years because people are going out of business, and it’s not because they’re a bad business, but because they’re being taxed to oblivion.”
The campaign’s origin traces back to Dorset publican James Fowler, who first displayed “No Labour MPs” stickers in his Bournemouth pub, the Larderhouse. In reaction, Bournemouth East Labour MP Tom Hayes expressed disappointment, saying: “It’s the Christmas season, it’s meant to be the joyful season, but the Larderhouse and other businesses with a ‘no Labour MPs’ sticker in the window are undermining the inclusive culture that business owners locally have helped to nourish.” Hayes noted that the ban complicates efforts to support local businesses and called for politics to be left out of the high street, particularly during the festive season. Acknowledging the boldness of the protest, Lennox remarked that he understood the risks involved and reassured that individual MPs like Hayes, who have engaged constructively with landlords, should not be the targets of frustration—rather, the government should be held accountable.
Concerns from the hospitality sector also focus on the UK’s 20% VAT rate for hospitality, a figure significantly higher than the roughly 10% charged in many other European countries. Prior to the recent Budget, the Liberal Democrats advocated for cutting VAT to 5%. According to Lennox, such a reduction would “solve all the issues” by fostering growth and increasing tax revenue after businesses achieve profitability. Companies are additionally frustrated by changes to business rates announced in the Budget, which may lead to substantial yearly increases. Although the government plans to calculate business rates for 750,000 retail and hospitality businesses using lower percentages of their premises’ rateable values, the expected relief is less generous than hoped. Many firms face higher rateable values and the tapering off of a 40% Covid-era discount starting in April, resulting in significant overall hikes despite transitional relief. Downing Street responded by stating that increases will be capped at 15% for most properties and £800 for the smallest, with new, permanently lower tax rates for retail, hospitality, and leisure coming into effect from April—said to be the lowest in over 30 years, aiming to provide stability and certainty moving forward
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