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.

Chief secretary to the treasury Emma Reynolds made the remarks during an interview with GB News on Sunday. Asked about people affected by Labour’s economic policies, Reynolds said: “I don’t think employers are working people, they are companies.”

When host Camilla Tominey asked whether that meant she was not a working person because she employed a cleaner, Reynolds replied: “No, but you’re an employee probably of your company, and I’m saying there is a difference between employers and employees.”

The comments prompted a backlash from Conservative politicians. 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.

Shadow defence secretary James Cartlidge also criticised the distinction, saying employing people was among the hardest parts of running a business.

The exchange has revived scrutiny of Labour’s 2024 manifesto pledge not to raise taxes on “working people”, including income tax, national insurance and VAT. The pledge became contentious after former chancellor Rachel Reeves raised employers’ national insurance contributions in October 2024.

The government argued that the increase did not breach the commitment because it applied to employers rather than employees. 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.

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.