File photo: Britain’s Chief Secretary to the Treasury Emma Reynolds
The main rate of employers’ national insurance rose from 13.5% to 15%, while the secondary threshold — the level above which employers begin paying the contribution — was reduced from £9,100 to £5,000. Because it applied to employers rather than employees, the government argued that the increase did not breach the commitment.
A British treasury minister has reignited a political row over Labour’s definition of “working people” after saying employers do not fall under the category, drawing criticism from opposition politicians who accused the government of overlooking the contribution of small-business owners. Asked about people affected by Labour’s economic policies, Reynolds said: “I don’t think employers are working people, they are companies. Shadow business minister Bradley Thomas accused Labour of displaying a “patronising, out-of-touch” attitude towards small businesses, pointing to electricians who take on apprentices and shop owners who employ young people for weekend work. Shadow work and pensions minister Helen Whately said the remarks showed that Labour did not understand that businesses were built through hard work.
The comments prompted a backlash from Conservative politicians. A Treasury spokesperson defended the government’s position, saying it would stick to its manifesto commitments and would not increase the rates of income tax, employee national insurance, VAT or corporation tax. Chief secretary to the treasury Emma Reynolds made the remarks during an interview with GB News on Sunday.