The festive spirit has hit a sour note in Leeds, but it’s not because of Christmas cheer—it’s because local pub landlords are pushing back against crippling tax policies.
Rachel Reeves, the Chancellor, has found herself barred from the Marsh Inn, a pub in her own constituency, after business rates skyrocketed under her leadership.
Landlord Martin Knowles decided enough was enough, putting up a sign that Labour MPs, including Ms Reeves, are no longer welcome.
Business Rates Bite Hard
Mr Knowles said bluntly that he had to ban all Labour MPs from his pub because “they are not doing our industry any favours at all.”
The pub had already faced a £2,500 increase in business rates, which is just one piece of the financial strain hitting the hospitality sector.
Spiraling National Insurance contributions and mandatory minimum wage hikes have compounded the pressure, pushing hundreds of pubs to the edge of closure.
The Fallout Across the Country
The picture isn’t unique to Leeds. Nearly three pubs a week closed in the six months to October, marking an 85% increase compared to the previous year.
Experts warn that unless the government changes course, another 2,000 pubs could be forced to shut next year.
Some landlords are demanding concrete action: lower VAT, halting PAYE increases, and freezing business rate hikes.
Without this, they say, pubs simply won’t survive.
High-Profile Support for the Ban
Martin Knowles is far from alone.
High-profile figures like TV presenter Jeremy Clarkson have also banned Labour MPs from their pubs, citing huge business rate jumps—from £28,000 annually to over £50,000 in his case.
Shadow Business Secretary Andrew Griffith weighed in, arguing that Labour’s policies are “hammering pubs with eye-watering increases” and that it’s no wonder landlords are taking a stand.
Families Feel the Strain
Behind the bar, the struggles are personal. Melanie Knowles, Martin’s wife, described daily hardships: “Every single day is a struggle.
Other people are shutting doors and giving up because they can’t make a living.
Customers are cutting back too—socialising is the first expense to go.”
The cost of living and higher taxes are creating a perfect storm that threatens the very fabric of local communities.
Pubs Plead for Support
Even pubs that have hosted Ms Reeves, like The Britannia, are speaking out.
The British Beer and Pub Association’s CEO, Emma McClarkin, warned that “sky-high business rates have left publicans at their wits’ end.”
Dawn Hopkins from the Campaign for Pubs called the government’s approach “a broken promise,” highlighting the looming crisis if rates continue to climb unchecked.
Chancellor’s Response
Ms Reeves has not backed down.
In an interview with the I Paper, she declined to promise any easing of tax hikes, emphasizing the volatility of the economic landscape.
“It would be wrong to start writing future Budgets,” she said, noting only that her policies might reduce the need for future tax changes.
Government Support Measures
The Treasury insists it is helping pubs.
A spokesman pointed to a £4.3 billion support package for restaurants, pubs, and cafes, along with efforts to ease licensing, maintain alcohol duty cuts on draught pints, and cap Corporation Tax.
Assistance is also available to businesses facing sharp increases in business rates, but many publicans argue that these measures are still not enough to keep their doors open.
What’s Next for Pubs?
As the government and landlords spar over taxes, the future of Britain’s pubs remains uncertain.
With closures accelerating and business rates soaring, the industry is bracing for a tough 2026 unless major policy changes come quickly.
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