Get outta my pub: landlords ban Labour MPs over rising business rates

Pubs across the UK have said Labour MPs are not welcome as frustration grows within the hospitality sector over rising costs. Over 250 pubs, restaurants, and hotels have already joined the movement, which started last week.

One of the first pubs to bar Labour MPs was the Old Thatch in Dorset, where landlord Andy Lennox explained that it’s a sign of the industry’s reaction to soaring business and VAT rates.

Although the government has pledged multibillion-pound support for hospitality, the campaign suggests many operators feel the response does not fairly reflect the financial pressure they are under.

Why pubs are banning Labour MPs

Andy Lennox told the BBC that the campaign was initiated by a neighbouring Dorset publican, James Fowler, who first displayed a “No Labour MPs” sticker at the Larderhouse in Bournemouth. Mr Lennox said the ban was a last resort after years of lobbying had failed to result in any meaningful financial relief.

One of the reasons the hospitality industry has been under major financial pressure is due to unpredictable business rates.

While in the recent Budget, the government announced that some retail and hospitality businesses will benefit from a lower multiplier, many have seen their rateable values increase, which means they won’t qualify for the lower rates. 

And from April, the remaining COVID-era 40% business rates discount will be no more. 

Another area of concern is hospitality VAT rates, which remain among the highest in Europe at 20%. Before the Budget, the Liberal Democrats suggested a reduction to 5% to help ease pressure on the industry, but this has yet to materialise.

Speaking to the BBC, Mr Lennox said repeated campaigns from a “fed up” hospitality industry had only been met with higher taxes, instead of much-needed support. He described widespread anger among landlords who feel they are being taxed “to oblivion”, despite warnings that pubs are already disappearing.

How Labour has responded

Despite the revolt, the government insists it is not abandoning pubs and small hospitality venues.

In her 2025 Budget speech, Chancellor Rachel Reeves said the government would introduce “permanently lower tax rates for over 750,000 retail, hospitality and leisure properties – the lowest tax rates since 1991”.

She said the reforms would be funded “through higher rates on properties worth £500,000 or more, like the warehouses used by online giants”, alongside a wider package of support designed to protect small businesses facing steep increases in their bills.

However, UKHospitality has disputed the government’s figures, questioning both the scale of the support and how far it will offset rising costs for small venues. 

New data suggests that even with a reduced multiplier and transitional relief, the average UK pub’s business rates will still rise by around 15% next year.

What this means for small businesses

For small pubs and hospitality venues, the campaign highlights a broader concern over whether promised support is translating into real, day-to-day relief.

While the government’s commitments may sound generous on paper, many operators doubt they will feel the benefit. 

Rising rateable values, the phasing out of COVID-era discounts, and uncertainty over how relief will be applied mean overall bills are still a source of concern for many.

And especially for smaller pubs with tight margins, even slight cost rises can have serious consequences, with landlords warning of job losses, trimmed-down opening hours, and potential further closures in 2026.

While the ban signifies a serious breakdown in trust between pubs and MPs, there is still a chance that the government’s pledges will deliver the relief operators are waiting for. In the meantime, hospitality venues can look into alternative funding options to help weather the storm.