Labour under Andy Burnham is facing fresh criticism over its definition of "working people," with recent statements from senior figures suggesting that employers and savers may not qualify. The debate echoes a similar controversy from October 2024, when Sir Keir Starmer, then Prime Minister, made a promise about taxation that was quickly broken.
Starmer had pledged that Chancellor Rachel Reeves would not tax "working people," describing them as those who earn a living through a monthly cheque but lack the means to "write a cheque to get out of difficulties." Days later, Reeves' first Budget imposed measures affecting savers, pensioners, landlords, farmers, and business owners.
New Definitions Spark Backlash
Now, Chief Secretary to the Treasury Emma Reynolds has stated: "I don't think employers are working people." This implies that the millions who run businesses, work long hours, take financial risks, and employ staff do not count under Labour's definition, potentially making them targets for future tax rises.
At Prime Minister's Questions on Wednesday, Louise Haigh, standing in for Burnham, offered her own definition. She said working people are those who "don't have savings they can dip into" and "rely on good public services." Critics argue this penalises those who save and get on in life.
Pensioners and Broader Policies Under Fire
The redefinition is seen as a precursor to targeting pensioners, who by definition are no longer working people. Burnham has reportedly set his sights on the state pension triple lock, along with pensioners' savings, capital gains, and inheritances. Labour's rising financial star Torsten Bell is also portrayed as keen to tax pensioners further.
Beyond taxation, Burnham has waded into the slavery compensation row, a move that has embarrassed the King and could leave the UK liable for trillions. Foreign Secretary Ed Miliband's involvement has added to the controversy. Burnham promised £40m to Caribbean countries last week, but they are reportedly seeking trillions.
Political Strategy and Concerns
The article suggests these moves are calculated to win back left-wing voters, including those who defected to the Greens, by reopening debates on Brexit and trans issues. Labour's draft conversion practices bill could expose parents who question a child's decision to transition to potential prison sentences. The party is also criticised for shuttering North Sea fields while importing oil and gas from abroad.
The piece concludes that if Burnham calls and wins an election, Britain could "completely decouple from reality" and may never rediscover its "fabled common sense."
