Government backs pubs amid campaign to bar Labour MPs over tax policy
Downing Street has expressed government support for pubs during a campaign that seeks to bar Labour MPs from certain venues in response to hospitality tax policies. The campaign, initiated by Andy Lennox, landlord of the Old Thatch in Dorset, has gained the backing of more than 250 pubs, restaurants, and hotels nationwide.
Supporters of the campaign argue that hospitality taxes have increased significantly, and Lennox has stated that the ban is a last resort following unsuccessful tax-cut efforts. The government highlights its £4.3 billion support package for pubs, restaurants, and cafes, which aims to reduce an anticipated 45% rise in business bills to around 4% next year. This package includes measures such as the draft beer duty cut, licensing relief for pavement drinks and events, and a cap on corporation tax.
A Downing Street spokesman declined to comment on specific business policies or the Prime Minister’s situation but reiterated the government's support for hospitality sectors. In contrast, Labour MP Tom Hayes of Bournemouth East criticized the 'No Labour MPs' signs, suggesting they undermine local business culture. Lennox responded by saying the campaign reflects the government's perceived inaction.
Meanwhile, the Liberal Democrats have called for a 5% VAT cut for pubs and restaurants. Lennox supports this, arguing that VAT cuts would stimulate growth and enhance profitability. Changes to business rates include a cap on increases at 15% for most properties and £800 for the smallest. While 750,000 high-street firms will benefit from lower rateable-value-based taxes, many will face higher bills due to rate increases and the phasing out of the Covid-era 40% discounts; new lower rates for retail and hospitality sectors are also introduced.
