Leeds pub bans Labour chancellor over tax hikes

A local landlord in Leeds has barred Rachel Reeves, the Labour chancellor, from his pub amid what he calls crippling tax rises that he says are squeezing the hospitality sector. Martin Knowles, who runs the Marsh Inn in Pudsey, posted a sign declaring that all Labour MPs are not welcome on the premises after Reeves was hit with a £2,500 increase in business rates. Reeves had visited the pub last July, shortly after she became treasury minister following Labour’s election victory, but Knowles said the ban would stand indefinitely.

Knowles said the ban would apply to Reeves and any Labour MPs, arguing they are not doing the industry any favors. He added that customers have largely accepted the policy, and that the pub would not entertain political visits while the party in government is driving up costs. The move mirrors a wider wave of discontent from landlords who have warned that tax changes are pushing pubs to the brink.

The broader backdrop is one of pressure on pubs across the country. Supporters of the industry note that rising National Insurance costs, along with planned increases to the minimum wage, have compounded the effect of higher business rates. In the six months to October, nearly three pubs a week closed, an 85 percent rise from the same period in 2024, with industry analysts estimating another 2,000 closures could occur next year if policy direction does not change.

Among publicans echoing the concern is Jeremy Clarkson, who has displayed a “No Labour MPs” sign at his The Farmer’s Dog in the Cotswolds. The sentiment is mirrored by trade groups; Emma McClarkin, chief executive of the British Beer and Pub Association, warned that the new rates burden could threaten the survival of many pubs if left unchecked. Dawn Hopkins, vice-chair of the Campaign for Pubs, argued that the government’s rate policies amount to a betrayal given promises of relief that have not materialized.

In interviews over the weekend, Reeves defended the administration’s approach, saying the world remains volatile and she did not want to pre-empt future budgets. She suggested that her policies aim to reduce the need for further tax changes, while declining to promise a specific easing of taxes. Reeves’ comments came as the Treasury spokesman pointed to a package intended to protect hospitality venues. The government’s Budget includes roughly £4.3 billion in support for pubs, restaurants and cafes and aims to ease licensing for pavement drinks and one-off events, maintain a cut to alcohol duty on draught pints, and cap rising business rate bills for affected firms.

The public exchange underscores ongoing tensions between policymakers and the hospitality sector as landlords seek relief from tax bills that critics say have grown unsustainably high. Shadow Business Secretary Andrew Griffith said the business rates hikes are hammering pubs and argued that Labour’s policy is out of step with what small venues need to survive. He urged the party to rethink its approach to taxes that affect the day-to-day costs of running a pub, particularly in tight economic times.

As the debate continues, Reeves and her supporters emphasize the government’s intent to balance fiscal responsibility with targeted relief for businesses most affected by rate increases and regulatory changes. The Marsh Inn episode adds a tangible, local dimension to a wider policy debate that remains central to the health of Britain’s pubs and related hospitality businesses as government calculations and local sentiment converge in the coming months.