Treasury minister sparks fury after suggesting employers not ‘working people’

A Treasury minister has come under fire for suggesting that employers are not “working people”.

Chief Secretary to the Treasury Emma Reynolds was criticised by politicians from rival parties for her remarks, reigniting a row over Labour’s definition of the term.

Questioned on people hit by Labour’s economic policies, Ms Reynolds told GB News on Sunday: “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 exchange revived the debate about who Labour considers to be a working person, after the party’s 2024 manifesto pledge not to raise taxes on them, including through VAT, national insurance, and income tax.

Former chancellor Rachel Reeves’s increase in the employers’ rate of national insurance in October 2024 led to accusations of a manifesto breach, but ministers argued it was not, 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.”

“Tell that to the millions of small business owners who employ people.

“Labour haven’t a clue about business.”

Ms Reynolds defended measures announced by Chancellor John Healey on Wednesday in his Budget when challenged over landlords and savers being hit by an extra two percentage points added to income tax on property and savings income.

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.”