A Treasury minister has embarrassingly backed off her suggestion that employers are not 'working people'.
Emma Reynolds said she wanted to 'correct the record' following a barrage of criticism over the jibe in an interview at the weekend.
Speaking in the Commons last night, the Chief Secretary to the Treasury said: 'Of course, the brilliant men and women across the country who run small businesses are working people.
'I thank them for their contribution to our local economies and our local high streets.
'The bakeries, the cafes, the restaurants, the beauticians, the hairdressers and the local pub and so many more.'
Ms Reynolds made her remark about employers as she 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 in business following 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.
'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.'
Ms 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.
Ms 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 Ms Tominey repeated that those 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.
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