Labour minister faces fury after insisting employers are 'not working people' in awkward interview

A Treasury minister is facing a backlash today after insisting employers are not 'working people' in an awkward interview.Emma Reynolds attempted to make the distinction as she was challenged on whether Labour had broken its manifesto by ramping up taxes.The Chief Secretary to the Treasury was being grilled on GB News about the decision to increase the burden on landlords and savers.She argued there was a 'difference' between employers and employees, despite being confronted with the case of a northern pie seller struggling to keep his shops going amid rises in national insurance, the minimum wage and inflation. The uncomfortable exchanges began when Ms Reynolds was asked about the Budget's two percentage point increases in tax on landlords and savers.When presenter Camilla Tominey said they were 'working people as well', the minister replied: 'Well, firstly, let me say I don't think employers are working people - they are companies. Emma Reynolds attempted to make the distinction as she was challenged on whether Labour had broken its manifesto by ramping up taxes Ms Reynolds' remarks were branded 'beyond belief' by Tories'And secondly, 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.'Tominey pointed to the case of Paul Bowen, who spelled out the woes faced by his pie shops in a striking interview last week. 'He's an employer, but he's also a worker, isn't he?' she said.Ms Reynolds said she would 'love to talk to Paul at some stage', insisting the Budget tax increases were 'targeted and fair' - but did not address the question directly.Tominey pointed out that she personally worked six days a week but employed a cleaner. 'You can't seriously be suggesting, as you just have, that employers aren't working people?' she said. Ms Reynolds replied: 'No, but you're an employee probably of your company, and I'm saying there is a difference between employers and employees. 'By the way, I also have a cleaner because I also work six or seven days a week. 'So, the distinction I am drawing is between employees and employers.'When Tominey repeated that the people being hit by tax rises were workers, the minister said she did not 'agree with that analysis', and the Government had offered business rates relief to tens of thousands of small businesses.Ms Reynolds' remarks were branded 'beyond belief' by Tories.Shadow defence secretary James Cartlidge posted on X: 'Employers aren’t working people?? 'Employing people is one of the hardest jobs there is. And Labour are making it harder. 'Building the team to make a business grow is rewarding but also a massive challenge - be great if someone in Labour understood this.' Conservative frontbencher Neil Shastri-Hurst added: 'I suspect this will come as news to the many small business owners I speak to on a weekly basis!' Mr Bowen, a former Apprentice star who runs shops in Chorley, Lancashire, gave an excoriating verdict on the Budget during an appearance on ITV's Good Morning Britain last week. In an interview last week Paul Bowen, a former Apprentice star who runs pie shops in Chorley, Lancashire, demanded to know: 'Where's my breathing space?'He said he had been hopeful when Mr Burnham took over from Keir Starmer because he is 'northern' and 'gets it'.But he said he would not get business rates reliefs trumpeted by Chancellor John Healey because he operates two shops.Mr Bowen has previously spoken about how he was forced to close one shop because of Labour's huge increases to employer National Insurance contributions under previous chancellor Rachel Reeves.That intervention on social media last month drew a direct response from Mr Burnham, who said: 'I am listening and I'm sorry it has got to the point that you need to close your doors.'Mr Bowen told GMB after the Budget: 'My week has gone up, I've got no business rates, I've got no relief. The National Insurance is crippling me. The energy crisis is crippling me.'I'm going to have to put my prices up, customers are going to get mad. I'm going to get less profit...'Me as a family, as a director, I've got to take a 2 per cent cut. So my family, my one-year-old girl... I'm taking a pay cut. My business is taking a pay cut.'How is that breathing room for me? Where is my breathing space?'