Employers are working people, insists science minister after backlash at treasury minister's comments
A Government minister has insisted that employers are working people after the chief secretary to the Treasury came under fire after suggesting that they weren't. Emma Reynolds made the original comments after being questioned on Labour’s economic policies following last week's Budget. Speaking to LBC this morning, Science Minister Chris McDonald said employers are working people but suggested his colleague's comments were misrepresented.
Left out here: Leaves out what changes the picture
LBC never says that Labour's 2024 manifesto promised not to raise taxes on working people, or that ministers had earlier argued the rise in employers' national insurance did not break that pledge because it hit employers, not employees. Without this, a reader may take Reynolds' remark as a stray gaffe about whether bosses work, rather than a statement on the definition the government uses to defend its tax rises against the charge of a broken pledge.
How we know
- City AM reported“In its 2024 election manifesto, Labour vowed not to increase taxes on ‘working people’, ruling out hikes to income tax, employee National Insurance and VAT.”Treasury minister: ‘I don’t think employers are working people’ (opens in a new tab)
- Evening Standard reported“led to accusations of a manifesto breach, but ministers argued it was not, because it hit employers, not employees.”Treasury minister sparks fury after suggesting employers not ‘working people’ (opens in a new tab)
Ms Reynolds said in an interview on Sunday: "I don’t think employers are working people; they are companies". Read more: Treasury Secretary refuses to commit to equalising minimum wage by next election - as Labour accused of breaking manifesto pledge Read more: 'We need to make sure blood cancers aren't left behind': Scientists hoping to double leukaemia survival rates with new £25m appeal She later added: "There is a difference between employers and employees".
But when questioned on the comments, Mr McDonald told Nick Ferrari at Breakfast : "I do think employers are working people, and I worked for a long time. "I ran my own business, and there were times at the end of the month when everyone else got paid and I didn't. "There were times at the end of the month when people were getting paid because I was taking my money out of my bank account to pay them, and that's what it's like when you run a business.
"There are lots of [LBC] listeners that have small businesses or are self-employed, and they'll feel the same too." The row was sparked just days after Chancellor John Healey’s first Budget imposed an extra 2p income tax on landlords and savers from April 2027. Ms Reynolds insisted the tax rises were "targeted and fair", referring to the Government's £100 energy handout for millions of households. Challenged on how she came to be "effectively Deputy Chancellor", Mr McDonald told Nick: "If you'll allow me to just give her the benefit of the doubt, she said two words after.
"They were that they are companies. "I don't think she was referring to the people who are running small businesses employing people. "I think what she was saying was increasing the VAT on a corporate entity is different to people paying National Insurance off their PAYE." Ms Reynolds' comments drew criticism from shadow business minister Bradley Thomas, who fumed: "Labour’s patronising, out-of-touch politics of envy on display here from Minister Emma Reynolds.
"What about the thousands of small businesses who employ people? The electrician who works but takes on apprentices? "The florist who runs her shop and has a young person work a few hours on weekends? "The list is endless and so is Labour’s vindictiveness and denial of reality."
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