Rachel Reeves has found herself unwelcome at her neighborhood pub, a direct response to the heavy tax hikes she implemented, which many in the hospitality industry say are crippling their businesses.

Martin Knowles, the landlord of the Marsh Inn, located in her Leeds constituency, has effectively banned the Chancellor from enjoying a festive drink at his establishment. This decision follows a significant increase of £2,500 in business rates that Knowles attributes to Reeves’ policies.

In a twist of irony, Reeves had previously posed for a photo with Knowles at his pub last July, shortly after assuming her Treasury role in the wake of Labour’s electoral victory. However, tensions have since escalated, prompting Knowles to prominently display a sign indicating that all Labour MPs, including Reeves, are no longer welcome.

“I decided to bar them all, the local MP included, as they aren’t doing anything positive for our industry,” Knowles explained. “Our customers seem quite pleased with this decision.”

Beyond business rates, Reeves’ increases in National Insurance costs and the minimum wage have also been cited as factors pushing numerous pubs to the edge of financial collapse.

Despite the widespread economic strain attributed to her tax policies, the Chancellor recently suggested that further tax increases could be on the horizon, hinting that she can’t rule out such measures for 2026.

Hospitality bosses have borne the brunt of her policies, especially business rate hikes which will see a typical pub’s taxes doubling by 2029.

Nearly three pubs a week went bust in the six months to October – an 85 per cent increase on the same period in 2024 – and it has been estimated that a further 2,000 could be forced to close next year unless the Government changes course.

Rachel Reeves (centre) has been banned from her local pub the Marsh Inn by landlord Martin Knowles (left)

Mr Knowles (pictured gesturing to a ‘No Labour MPs’ sign) barred the Labour Chancellor after he was hit with a £2,500 hike in business rates

Ms Reeves visited the pub last July, soon after she took over at the Treasury following Labour’s election victory

Mr Knowles said that if Ms Reeves was to be allowed back into his pub, she needed to lower VAT and PAYE, stop increasing the minimum wage and stop business rates going ‘through the roof’.

He joins hundreds of landlords across the country banning Labour MPs over the damage they are wreaking to their business.

Among them are TV presenter Jeremy Clarkson who displays the ‘No Labour MPs’ sign at his Cotswolds pub The Farmer’s Dog. 

He has explained: ‘Our annual business rates have gone up astronomically from something like £28,000 to well over £50,000. It is a disgrace.’ 

Shadow Business Secretary Andrew Griffith said on Saturday night: ‘Business rates hikes are hammering pubs with eye-watering increases. It is no wonder Rachel Reeves is barred from her local.

‘Labour doesn’t understand businesses. They should undo these punishing changes before they drive the Great British pub to extinction.’

Mr Knowles’ wife Melanie confirmed that Ms Reeves ‘won’t get through the door again’ adding: ‘Every single day is a struggle for us. Other people are shutting the doors on these places and throwing the keys back because they can’t make a living any more. They’re not even breaking even.

‘It’s down to the cost of living, too, because customers are struggling and where is the first place that you cut down? Socialising. It’s because the Labour Government have made everything so expensive for people to do.’

Ms Reeves was also pictured enjoying a pub lunch at The Britannia pub in her constituency last year – and they too have called on her to ‘change course and support pubs rather than taxing them to death’ in a post on social media.

Emma McClarkin, CEO of the British Beer and Pub Association, said: ‘New sky-high business rates have left many publicans at their wits’ end and could threaten the very existence of many pubs across the country.’

Dawn Hopkins, vice-chair of the Campaign for Pubs, added: ‘The Government is in complete denial over the impact their business rates betrayal will have on pubs.

The Marsh Inn, in Pudsey, Leeds now has a sign up which makes clear that all Labour MPs are not welcome

Ms Reeves was also pictured enjoying a pub lunch at The Britannia pub in her constituency last year – they too have called on her to ‘change course and support pubs rather than taxing them to death’ in a post on social media

‘They promised lower business rates, yet instead pubs will be hit with a huge hike next April and completely unsustainable bill levels. This is clearly a broken promise, but it’s also literally unaffordable for pubs. Unless they want to be responsible for closures of pubs up and down the country, the Government must think again.’

In an interview with the I Paper this weekend, Ms Reeves would not promise to ease back on the tax rises, saying: ‘The world is incredibly volatile at the moment. It would be wrong to start writing future Budgets.’

She said only that her policies will ‘hopefully mean further changes to tax are less necessary’.

On Saturday night the Treasury declined to comment on the Chancellor being barred from her local pub, but a spokesman insisted: ‘We’re protecting pubs, restaurants and cafes with the Budget’s £4.3 billion support package.

‘This comes on top of our efforts to ease licensing to help more venues offer pavement drinks and put on one-off events, maintaining our cut to alcohol duty on draught pints, and capping Corporation Tax.’

He said there was also Government help to cap business rate bills for companies facing steep increases in their valuations.

Additional reporting: Jacinta Taylor