Highlights
- More than 250 pubs, restaurants and hotels have banned Labour MPs from their premises.
- Government claims £4.3bn support package cuts potential 45 per cent bill increase to just 4 per cent.
- Industry disputes figures, says businesses face closure due to tax burden.
Downing Street has defended its support for the hospitality sector after more than 250 pubs, restaurants and hotels across Britain joined a campaign banning Labour MPs from their premises in protest against tax increases.
The campaign began last week when Dorset publican James Fowler placed "No Labour MPs" stickers in his Bournemouth establishment.
Landlord Andy Lennox of the Old Thatch pub said the protest was a "last resort" after multiple campaigns for tax cuts resulted in higher taxes instead.
"Everyone is fed up because the Labour government hasn't listened and instead has taxed us more," Mr Lennox told the BBC.
He said businesses were "being taxed to oblivion" and faced closure despite professional campaigning efforts, including hand-delivering letters to the chancellor.
Government defends measures
The prime minister's official spokesman said the chancellor had delivered a £4.3bn support package because hospitality is a "vital part of our economy".
He claimed that without government intervention, pubs would have faced a 45 per cent rise in bills next year, which has been reduced to 4 per cent.
However, UKHospitality disputes these figures. The industry body challenges both the value of the support package and the impact of government intervention.
Bournemouth East Labour MP Tom Hayes expressed frustration at being barred from local businesses. "My job has just got a million times harder because I can't go and bang the drum for businesses with the chancellor if I can't speak to business owners," he said, calling for politics to be kept off the high street, especially at Christmas.
Many businesses are particularly angry about business rates changes announced in last month's budget, which could add tens of thousands of pounds to annual bills despite some transitional relief.
The UK's 20 per cent VAT rate for hospitality is among Europe's highest, with most countries charging around half that rate. Lennox said cutting VAT would "solve all the issues" and generate more growth and taxation.
Downing Street said business rate increases would be capped at 15 per cent for most properties and £800 for the smallest venues.
