Treasury minister Emma Reynolds has withdrawn her earlier suggestion that employers should not be considered working people, following widespread criticism of her comments during a television interview.
Speaking in the House of Commons, the Chief Secretary to the Treasury said she wanted to correct the record and acknowledged the contribution made by small business owners across the country.
She said: “Of course, the brilliant men and women across the country who run small businesses are working people.”
Ms Reynolds also recognised the role of independent businesses in supporting local economies and high streets, specifically mentioning bakeries, cafes, restaurants, beauty salons, hairdressers and local pubs.
GB News Interview Sparks Controversy
The controversy began during an interview with GB News presenter Camilla Tominey over the Government’s decision to increase taxes on landlords and savers by two percentage points in the Budget.
When Ms Tominey argued that landlords and savers could also be considered working people, Ms Reynolds responded by drawing a distinction between employers and employees.
She said: “Well, firstly, let me say I don’t think employers are working people – they are companies.”
The minister subsequently defended the Government’s tax decisions, arguing that Labour had kept its manifesto commitments not to increase the headline rates of income tax or VAT, while also avoiding an increase in national insurance contributions for employees.
Minister Challenged Over Struggling Pie Shop Owner
During the exchange, Ms Tominey raised the case of Paul Bowen, a northern pie shop owner who had recently spoken about the financial difficulties facing his businesses.
Bowen had described the challenges of keeping his shops operating amid increases in employer national insurance contributions, the minimum wage and inflation.
Questioning Reynolds’ distinction between employers and employees, the presenter pointed out that Bowen was both a business owner and someone who worked in his business.
She asked whether he was also a worker, to which Reynolds replied that she would welcome an opportunity to speak with him.
The Treasury minister maintained that the Budget’s tax increases were targeted and fair but did not directly address the presenter’s challenge.
Camilla Tominey Questions Minister’s Definition of Working People
Ms Tominey continued pressing Reynolds over her comments, using her own employment arrangements as an example.
The presenter explained that she worked six days a week while also employing a cleaner, questioning how the minister could suggest that employers were not working people.
Reynolds responded by saying that Tominey was probably an employee of her own company, reiterating that there was a distinction between employers and employees.
She added that she also employed a cleaner because she worked six or seven days a week.
The minister insisted that her argument was based on the difference between the two categories rather than suggesting that business owners did not work.
When Tominey again argued that those affected by the tax increases were working people, Reynolds said she disagreed with that interpretation.
Government Defends Support for Small Businesses
Reynolds also defended the Government’s approach to businesses, pointing to business rates relief made available to tens of thousands of small businesses.
However, her original comments attracted criticism from Conservative politicians, who described the suggestion that employers were not working people as “beyond belief”.
The minister subsequently used her Commons appearance to acknowledge small business owners as working people and thank them for their contribution to communities and local economies.
