A Labour minister’s recent remarks suggesting that employers should not be considered “working people” have generated significant controversy. Emma Reynolds, Chief Secretary to the Treasury, made the comments during an interview on GB News, stating, “I don’t think employers are working people, they are companies.” When pressed on whether individuals who employ domestic workers, such as cleaners, qualify as working people, Reynolds distinguished between employers and employees.

The comments reignited debate over Labour’s commitment to its pledge not to raise taxes on workers. The party, which won the 2024 general election promising to avoid increasing workers’ tax burdens, faced criticism after former Chancellor Rachel Reeves introduced higher National Insurance contributions for employers. Critics argued this move undermined Labour’s manifesto assurances.

Shadow business minister Bradley Thomas challenged Reynolds’s position, highlighting that many small business owners who employ staff—for example, electricians taking on apprentices—both work and act as employers. He questioned the distinction drawn between working individuals and employers.

Reform UK Treasury spokesman Robert Jenrick echoed these concerns, stating, “Labour don’t think employers are working people. Tell that to the millions of small business owners. Labour haven’t a clue about business.” Opposition figures have argued that the Labour government’s policy shifts demonstrate a lack of understanding of the realities faced by business owners.

Labour officials have maintained that the rise in employers’ National Insurance contributions does not breach their manifesto promise because it targets employers rather than employees directly. However, the debate over who qualifies as a “working person” and the economic impact of the tax changes remains a point of contention.

The issue highlights ongoing tensions regarding Labour’s approach to taxation and support for businesses in the current economic climate. As discussions continue, both supporters and critics of the government’s policies are focusing on the broader implications for workers and employers across the United Kingdom.