A Treasury minister has come under fire after suggesting that employers are not “working people”.
Chief Secretary to the Treasury Emma Reynolds faced the criticism over her remarks, which have reignited a row over Labour’s definition of the term.
The controversy stems from an interview on GB News on Sunday, in which Ms Reynolds was questioned about people hit by Labour’s economic policies.
She told the broadcaster: “I don’t think employers are working people, they are companies.”
Later in the interview, host Camilla Tominey asked whether, because she employed a cleaner, she was not a working person.
Ms Reynolds replied: “No, but you’re an employee probably of your company, and I’m saying there is a difference between employers and employees.”
The party’s 2024 manifesto included a pledge not to raise taxes on working people, including through VAT, national insurance, and income tax.
The exchange has revived the debate about who Labour considers to fall into that category.
In October 2024, former chancellor Rachel Reeves increased the employers’ rate of national insurance, which led to accusations of a manifesto breach.
Ministers argued at the time that it was not a breach, because it hit employers, not employees.
Ms Reynolds told the broadcaster: “In the manifesto, we were clear that we would not increase the headline rate of income tax, which we haven’t done, and we haven’t increased VAT, and we haven’t increased national insurance for employees.”
Tory shadow business minister Bradley Thomas commented on the clip on X: “Labour’s patronising, out-of-touch, politics of envy on display here from Minister Emma Reynolds.
“What about the thousands of small businesses who employ people? The electrician who works but takes on apprentices? The florist who runs her shop and has a young person work a few hours on weekends?
“The list is endless and so is Labour’s vindictiveness and denial of reality.”
Shadow work and pensions minister Helen Whately said: “This attitude is why Labour is killing our economy. They don’t understand businesses are built by hard graft. By working people.”
Shadow defence secretary James Cartlidge wrote: “Employers aren’t working people??
“Employing people is one of the hardest jobs there is. And Labour are making it harder.
“Building the team to make a business grow is rewarding but also a massive challenge – be great if someone in Labour understood this.”
Reform UK Treasury spokesman Robert Jenrick said: “Labour don’t think employers are working people.
“Tell that to the millions of small business owners who employ people.
“Labour haven’t a clue about business.”
Ms Reynolds was also challenged during the interview over landlords and savers being hit by an extra two percentage points added to income tax on property and savings income.
She defended measures announced by Chancellor John Healey on Wednesday.
She said: “We made a very conscious decision in this Budget for the tax increases to be targeted and fair.
“We increased the corporation tax on banks in order to pay for the breathing space measures for families, particularly the £100 energy support package for families in council tax bands A to D, taking VAT off electricity for a further three months, and also extending the fuel duty cut.”
The Treasury has been contacted for comment.
