Labour Minister: 'Employers Are Not Working People'

Emma Reynolds, a prominent Labour voice, asserted during a GB News interview that Labour's recent Budget did not breach its manifesto pledges, despite new taxes on landlords and savers.

Chancellor John Healey announced increased corporation tax on banks to fund family support packages. New energy and fuel duty measures were also introduced. Reynolds maintained the party had not increased the headline rate of income tax, VAT, or National Insurance on employees.

"Well, firstly, let me say I don't think employers are working people - they are companies," Reynolds stated. She clarified, "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."

The additional tax on landlords and savers amounts to two per cent on the income tax bands for property and savings. Reynolds claims this is distinct from income tax, despite the Labour manifesto's commitment to not increasing the income tax rate, VAT, or National Insurance on employees.

Opposition figures quickly condemned Reynolds's comments. James Cartlidge questioned, "Employers aren’t working people??" He added, "Employing people is one of the hardest jobs there is. And Labour are making it harder."

Cartlidge further stated that building a team to make a business grow is rewarding but also a massive challenge. He suggested it would be beneficial if someone in Labour understood this. Neil Shastri-Hurst claimed the statement would come as news to many small business owners he speaks to weekly.

Robert Jenrick claimed that Labour does not think employers are working people. He suggested the party has no understanding of business. Bradley Thomas described Reynolds's comments as "Labour’s patronising, out-of-touch, politics of envy."

Helen Whately asserted that Labour's attitude is "killing our economy." She stated, "They don’t understand businesses are built by hard graft. By working people."

The government has offered business rates relief to tens of thousands of small businesses. In October 2024, former chancellor Rachel Reeves increased the employers' rate of national insurance.

The Budget also included £100 energy support for families in council tax bands A to D. It also featured a three-month VAT cut on electricity. Bob Seely claimed, "We are governed by Socialists. This is their logic."