Labour minister’s comments on employers spark controversy

Emma Reynolds, Chief Secretary to the Treasury, made the remarks during a Sunday interview on GB News while discussing the impact of Labour’s economic policies. She stated, “I don’t think employers are working people, they are companies.”

The comments have reignited a debate surrounding Labour’s definition of “working people,” particularly in light of a pledge in the party’s 2024 manifesto not to raise taxes on this group.

When questioned about her own employment of a cleaner, Reynolds clarified that she was an employee of her company, emphasizing a distinction between employers and employees.

The controversy was further fueled by the former chancellor Rachel Reeves’ decision in October 2024 to increase the employers’ rate of national insurance, which some critics argued contradicted the manifesto pledge. Reynolds defended the decision, asserting that it did not affect employees directly.

Conservative politicians swiftly criticized Reynolds’ statements. Bradley Thomas, shadow business minister, posted on X, highlighting the impact on small businesses and entrepreneurs. Helen Whately, shadow work and pensions minister, stated that the attitude was detrimental to the economy. James Cartlidge, shadow defense secretary, questioned the understanding of business within the Labour party.

Reform UK Treasury spokesman Robert Jenrick also condemned the remarks, asserting that Labour demonstrated a lack of understanding regarding business.

Reynolds defended recent budget measures, including targeted tax increases on banks to fund support packages for families, such as a £100 energy support payment and an extension of the fuel duty cut. She described these measures as “conscious” and “fair.”

The Treasury has been contacted for comment.