{
  "id": 17607428,
  "title": "Treasury minister: ‘I don’t think employers are working people’",
  "url": "https://urgent.news/2026/11/01/treasury-minister-i-dont-think-employers-are-working-people",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-01T13:05:41.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/treasury-minister-i-dont-think-employers-are-working-people/"
  },
  "original_language": "en",
  "account": "A prominent treasury minister has stated that she does not believe employers should be classified as working individuals, fueling ongoing controversy over whether the Labour Party breached its promise not to raise taxes for working people. The Labour manifesto of 2024 explicitly prohibited any increase in taxes for \"working people,\" excluding any hikes to income tax, employee National Insurance, and VAT. However, the government has faced criticism for allegedly violating this pledge through substantial modifications to employer taxation and extended tax-free thresholds, placing heavy tax burdens on business owners. Emma Reynolds, the chief secretary to the Treasury, refuted these claims during an interview on GB News, asserting, \"I don't think employers are working people, they are companies.\" Reynolds also rejected accusations that employers were unfairly treated in Healey's initial Budget, arguing that the tax hikes were \"targeted and fair.\" Despite this, business owners have vehemently opposed Healey's decisions. Although the Treasury provided some aid for entrepreneurs, such as marginal rates relief for specific sectors and a headline 10% Founder's Relief, industry leaders contend that they are still burdened by a high tax rate. The Chancellor's reduction of Business Asset Disposal Relief from £1 million to £500,000 has exacerbated concerns for small-business owners, as they now face a more substantial tax impact on their sales. This is compounded by former Chancellor Rachel Reeves' continuous freeze on tax thresholds and the minimum wage increase, which has left employers fearing that many businesses will soon have to shut their doors. Furthermore, Healey's new taxation on savings and rental income has been strongly criticized by industry leaders as targeting employers who rely on personal savings or property portfolios for income. Reynolds acknowledged that she did not agree with this approach, yet admitted she understands that some businesses are facing difficulties. The Budget introduced significant tax rate hikes on savings interest and property income, which will rise to 24% for basic-rate payers, 44% for higher-rate payers, and 49% for additional-rate earners from April 2027. For owner-managers and sole traders, this move eliminates another crucial buffer, as they may no longer be able to use personal cash balances or rental returns outside tax-free wrappers to finance business needs. Business organizations have warned that taxing these revenue streams will lead many landlords to sell up and exit the market, exacerbating the economic challenges faced by the sector.",
  "summary": "A top treasury minister has said she does not think “employers are working people” – reigniting fierce debate over whether Labour broke its manifesto pledge not to raise taxes for working people. In its 2024 election manifesto, Labour vowed not to increase taxes on ‘working people’, ruling out hikes to income tax, employee National Insurance [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}