news.today
Hello · Register today | LoginHello · My Account[—] [33]
UK

Treasury minister says employers are not 'working people'

Summarised from 5 outlets · Updated 1 Nov, 15:30 · Archive

Emma Reynolds, Chief Secretary to the Treasury, told GB News that employers are 'companies', not 'working people', reigniting debate over Labour's manifesto pledge.

Emma Reynolds, Chief Secretary to the Treasury, faced criticism after appearing on GB News on Sunday when she said: 'I don't think employers are working people, they are companies.' The remark came during questioning about Labour's Budget, which increased tax on landlords and savers through higher rates on rental income and interest.

Host Camilla Tominey challenged Reynolds by pointing to Paul Bowen, a pie shop owner who had previously spoken about difficulties facing his business amid rises in national insurance, the minimum wage and inflation. Tominey asked whether Bowen, as an employer who is also a worker, should not be considered a working person. Reynolds said she would 'love to talk to Paul at some stage' but did not directly address the question, insisting the tax increases were 'targeted and fair'.

When Tominey pressed further, suggesting that because she employed a cleaner she should not be a working person under Reynolds's definition, the minister replied: 'No, but you're an employee probably of your company, and I'm saying there is a difference between employers and employees.' Reynolds argued that Labour had kept its manifesto pledges by not increasing headline income tax rates, VAT or national insurance for employees.

The exchange revived debate over Labour's interpretation of 'working people' following earlier controversy. In October 2024, former Chancellor Rachel Reeves increased the employers' rate of national insurance, leading to accusations of breaking the manifesto pledge. The government argued at the time that this was not a breach because it affected employers rather than employees.

Reynolds repeated this argument on Sunday, telling GB News: '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.'

Business owners have disputed the government's position. Beyond the national insurance increase, the Budget included cuts to Business Asset Disposal Relief, reducing the threshold from £1 million to £500,000, and maintained the freeze on tax thresholds alongside minimum wage rises, all of which business leaders say increase their tax burden.

Reynolds's remarks drew criticism from opposition politicians. Tory shadow business minister Bradley Thomas commented on social media that her remarks displayed 'Labour's patronising, out-of-touch, politics of envy'. Reform UK Treasury spokesman Robert Jenrick said 'Labour don't think employers are working people', according to reports.

Treasury minister says employers are not 'working people'
Image: Evening Standard

Comments (0)

How it is being reported

In this story: Emma Reynolds · Labour · Paul Bowen · Camilla Tominey · Rachel Reeves · Bradley Thomas · GB News · Reform UK

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log