Treasury minister’s remarks reignite labour debate
A Treasury minister has come under fire after suggesting that employers are not “working people,” reports BritPanorama.
Chief Secretary to the Treasury Emma Reynolds faced criticism over her comments, which have reignited a row concerning Labour’s definition of “working people.” The controversy stems from an interview on GB News on Sunday, when Ms Reynolds was questioned about individuals impacted by Labour’s economic policies.
During the interview, she stated, “I don’t think employers are working people, they are companies.” Host Camilla Tominey then challenged Ms Reynolds, asking whether her employment of a cleaner excluded her from being classified as a working person. Ms Reynolds responded: “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 includes a pledge not to raise taxes on working people, such as through VAT, national insurance, and income tax. This has reignited the debate about who falls into Labour’s category of “working people.”
In October 2024, former chancellor Rachel Reeves increased the employers’ rate of national insurance, leading to accusations of breaching the party’s manifesto. Ministers at the time argued it did not constitute a breach as the measure primarily affected employers, not employees.
Ms Reynolds defended the party’s stance, stating, “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 responded to the clip on X, labelling Labour’s politics as “patronising” and out of touch. He pointed out the impact on small businesses, referencing various examples of working individuals.
Shadow work and pensions minister Helen Whately remarked, “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 expressed disbelief at Ms Reynolds’ comments, asserting that employing people is among the most challenging jobs and voicing concerns that Labour is making it more difficult.
Reform UK Treasury spokesman Robert Jenrick stated, “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.”
In the interview, Ms Reynolds was also questioned about how landlords and savers will be affected by an additional two percentage points added to income tax on property and savings income. She defended measures recently announced by Chancellor John Healey.
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.
