Labour's About-Face on Pubs Raises Questions Over Treasury's Policy Process
The swift U-turn by Labour over its stance on business rates for pubs suggests that the government is learning from past mistakes. However, critics argue that the pattern of policy changes continues to point to a Treasury department making decisions without proper consultation or thorough consideration of consequences.
While some Labour MPs are relieved that the decision to revisit business rates was reversed quickly, many others wonder why this had to happen in the first place. A recent change in inheritance tax for farmers and pensioners' winter fuel payments followed months of pressure from campaigners, often involving noisy protests outside parliament.
In contrast, the latest about-face on pubs appears to have been prompted by lobbying efforts by a group of Labour MPs who planned to table an amendment to the post-budget finance bill. This coordinated effort highlights the significance of listening to constituency concerns and engaging with backbenchers who can provide valuable insight into local issues.
The swift reversal of policy also raises questions about the Treasury's approach to decision-making. Critics point out that previous changes, such as scaling back Covid-era business rate discounts, were often made without fully appreciating their consequences. The recent increase in hospitality businesses' rateable values was seen as a surprise by some MPs, who argue that this should have been anticipated.
The repeated pattern of U-turns points to a Treasury department making decisions without sufficient consideration for the impact on various groups. Some backbenchers describe this approach as lacking "political nous" and failing to engage with people who have lived experience of the issues being addressed.
As one MP put it, "When the government thoroughly consults ahead of producing policy, it goes really well... However, whenever it presses ahead with plans without the engagement of people with lived experience, or backbench MPs with their finger on the pulse, it ends up in the wrong place." With this latest U-turn, Labour's opposition party may be able to hold the government to account for its decision-making process and push for greater consultation and consideration.
The swift U-turn by Labour over its stance on business rates for pubs suggests that the government is learning from past mistakes. However, critics argue that the pattern of policy changes continues to point to a Treasury department making decisions without proper consultation or thorough consideration of consequences.
While some Labour MPs are relieved that the decision to revisit business rates was reversed quickly, many others wonder why this had to happen in the first place. A recent change in inheritance tax for farmers and pensioners' winter fuel payments followed months of pressure from campaigners, often involving noisy protests outside parliament.
In contrast, the latest about-face on pubs appears to have been prompted by lobbying efforts by a group of Labour MPs who planned to table an amendment to the post-budget finance bill. This coordinated effort highlights the significance of listening to constituency concerns and engaging with backbenchers who can provide valuable insight into local issues.
The swift reversal of policy also raises questions about the Treasury's approach to decision-making. Critics point out that previous changes, such as scaling back Covid-era business rate discounts, were often made without fully appreciating their consequences. The recent increase in hospitality businesses' rateable values was seen as a surprise by some MPs, who argue that this should have been anticipated.
The repeated pattern of U-turns points to a Treasury department making decisions without sufficient consideration for the impact on various groups. Some backbenchers describe this approach as lacking "political nous" and failing to engage with people who have lived experience of the issues being addressed.
As one MP put it, "When the government thoroughly consults ahead of producing policy, it goes really well... However, whenever it presses ahead with plans without the engagement of people with lived experience, or backbench MPs with their finger on the pulse, it ends up in the wrong place." With this latest U-turn, Labour's opposition party may be able to hold the government to account for its decision-making process and push for greater consultation and consideration.