Pubs and restaurants are facing huge tax hikes of 76% over three years after Covid-era business rates relief ends in April, according to industry body UKHospitality
Boozers have barred Labour MPs for “taxing hospitality into extinction” as part of a national campaign.
Pub landlords and restaurant owners have stuck “No Labour MPs” stickers to their windows and doors over a business rates row. They face huge tax hikes of 76% over three years after Covid-era business rates relief ends in April, according to industry body UKHospitality.
The campaign was launched last week by Andy Lennox, landlord of Dorset’s Old Thatch pub, who said about 50 venues have pledged to ban Labour MPs. He said: “It’s springing up in different towns. It will be all over the place.
“We’re getting requests from across the UK for stickers and advice on how to get involved, from bosses as far away as Clacton-on-Sea. I don’t think the Labour Government understands what they’re doing.
“They’re taxing hospitality into extinction, and dressing it up as cutting rates and helping us.”
Chancellor Rachel Reeves announced a permanent 5% tax cut for hospitality and retail businesses in her autumn Budget. She said the move represents “the lowest tax rates since 1991” but ignored the fact this will do little to offset the large increases once relief ends.
UKHospitality also warned that ending business rates relief will force many businesses to reduce hours and potentially close sites, leading to significant job losses.
James Fowler, who runs the Larder House in Bournemouth, has joined the campaign and banned his local MP, Tom Hayes. He said: “I told Tom it wasn’t personal. He’s a great local MP – I voted for him – but this isn’t a local issue.
“We set this up so it could go national. We want people talking across the whole country – and I don’t mind putting my neck on the line.”
But Mr Hayes criticised the move and said banning MPs “stops me doing my job”. He added: “I can’t listen to business owners, represent them to the Government, and secure the powers and support they need.”
The Treasury was contacted for comment.
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