Chief Secretary to the Treasury Emma Reynolds is facing criticism after saying that employers are not "working people" during an interview on GB News.
Ms Reynolds made the remarks while being questioned on whether Labour had broken its manifesto by increasing taxes on landlords and savers. She argued there was a "difference" between employers and employees, despite being presented with the case of a northern pie seller struggling to keep his shops open following rises in national insurance, the minimum wage and inflation.
Minister challenged on tax rises
During the interview, presenter Camilla Tominey said that employers "were working people as well". Ms Reynolds replied: "Well, firstly, let me say I don't think employers are working people – they are companies."
She added: "And secondly, 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."
Ms Tominey pointed to the case of Paul Bowen, a former Apprentice star who runs pie shops in Chorley, Lancashire, and who spoke about his struggles in an interview last week. "He's an employer, but he's also a worker, isn't he?" she said.
Employer and worker distinction
Ms Reynolds said she would "love to talk to Paul at some stage", insisting the Budget tax increases were "targeted and fair". Ms Tominey noted that she personally worked six days a week but employed a cleaner, asking: "You can't seriously be suggesting, as you just have, that employers aren't working people?"
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. By the way, I also have a cleaner because I also work six or seven days a week. So, the distinction I am drawing is between employees and employers."
Reaction to remarks
Tory defence spokesman James Cartlidge posted on X: "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."
Mr Bowen, who runs two shops, gave a critical assessment of the Budget during an appearance on ITV's Good Morning Britain last week. He said he had been hopeful when Mr Burnham took over from Sir Keir Starmer because he is "northern" and "gets it", but said he would not get business rates reliefs trumpeted by Chancellor John Healey because he operates two shops. Mr Bowen has previously spoken about how he was forced to close one shop because of Labour's increases to employer National Insurance contributions under former chancellor Rachel Reeves.
