The comments reignited debate over the Labour government's 2024 manifesto pledge to protect working people from tax hikes. Opponents previously criticized the party after former chancellor Rachel Reeves raised employers' national insurance contributions in October 2024. That specific measure increased the main tax rate from 13.5% to 15% and lowered the secondary threshold to £5,000. In response to the latest controversy, a Treasury spokesperson confirmed that the government will stick to its commitments and avoid raising rates on income tax, employee national insurance, VAT, or corporation tax.
Key points
Labour ministers are defending their controversial distinction between employees and busi…: Labour ministers are defending their controversial distinction between employees and business owners to justify recent tax policies.
Conservative critics argue the government's rhetoric actively diminishes the efforts and…: Conservative critics argue the government's rhetoric actively diminishes the efforts and contributions of small-business operators across the country.
The Treasury reaffirmed it will not raise rates for employee national insurance, income t…: The Treasury reaffirmed it will not raise rates for employee national insurance, income tax, VAT, or corporation tax.
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A British treasury minister has reignited a political row over Labour’s definition of “working people” after saying employers do not fall under the category, drawing criticism from opposition politicians who accused the government of overlooking the contribution of small-business owners.
Chief secretary to the treasury Emma Reynolds made the remarks during an interview with GB News on Sunday. Asked about people affected by Labour’s economic policies, Reynolds said: “I don’t think employers are working people, they are companies.”
When host Camilla Tominey asked whether that meant she was not a working person because she employed a cleaner, 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 comments prompted a backlash from Conservative politicians. Shadow business minister Bradley Thomas accused Labour of displaying a “patronising, out-of-touch” attitude towards small businesses, pointing to electricians who take on apprentices and shop owners who employ young people for weekend work.
Shadow work and pensions minister Helen Whately said the remarks showed that Labour did not understand that businesses were built…
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