Chancellor John Healey on Tuesday publicly contradicted comments made by Treasury minister Emma Reynolds, who had suggested that employers are not 'working people.' The exchange occurred as Healey sought to quell a controversy sparked by Reynolds' remarks over the weekend.
Reynolds had come under fire for drawing a distinction between employers and employees during a television interview discussing the government's recent Budget. She stated, "I don't think employers are working people, they are companies." This comment arose while she was defending Budget measures that increased taxes on landlords and savers, prompting questions about whether the government had broken its manifesto pledge not to raise taxes on working people.
During a session in the House of Commons, Conservative former Cabinet minister Esther McVey challenged Healey on Reynolds' statement. "So, can he tell the House today, does he agree with his minister... who thinks employers aren't working people?" McVey asked.
Healey responded, "Of course they are," when asked if he considered employers to be working people. He emphasized that his Budget was intended to provide "breathing space" for businesses and help with cost-of-living and business pressures, citing measures such as removing business rates for 70,000 high street businesses.
Reynolds had previously defended the Budget's tax increases on property and savings income, explaining that the government had not increased the headline rates of income tax, VAT, or national insurance for employees, adhering to manifesto commitments. However, her distinction between employers and employees revived past criticisms, including accusations that a previous increase in employers' national insurance rates constituted a manifesto breach.