Speaking to GB News earlier this week, the High Wycombe MP was challenged by Camilla Tominey over the Chancellor’s decision to raise taxes on landlords’ rental income and savers’ interest by two percentage points in the Autumn Budget, and whether this broke Labour’s pledge not to raise taxes on working people.
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Responding, Reynolds said: “Well, firstly, let me say I don’t think employers are working people. They are companies.”
She added: “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.”
When asked whether employers could also be working people, Reynolds replied: “No, but you’re an employee probably of your company, and I’m saying there is a difference between employers and employees.”
She later added: “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.”
Negative comments
The comments have prompted backlash from hospitality operators who said ministers do not understand the realities of running a business.
Frisco Group managing director Heath Ball described the remarks as “short-sighted”.
“Employing people doesn’t mean I’ve stopped working. It means I’m responsible for everyone’s wages as well as my own,” he told The Morning Advertiser (The MA).
Ball, who operates the Red Lion & Sun in Highgate, north London, said he regularly works between 80 and 100 hours per week.
“My phone never stops and my mind never switches off. Even at home, every conversation is about work and how I manage things. I don’t think the Government has any idea of the graft involved,” he continued.
“They don’t seem to see the work or the people behind the business.”
Frisco Group managing director Heath Ball
In addition, Ball warned the rising cost of employing people was making it increasingly difficult to remain a good employer.
“With less tax I’d hire more people, innovate and create. Instead we’re being forced to play small and protect margins that are already squeezed, while still trying to keep our staff employed and our suppliers paid,” he said.
“They treat pubs like a luxury and think they can just keep taxing us. It’s brutal. They don’t seem to see the work or the people behind the business,” he said.
Ball also suggested Reynolds should spend time working in a pub before making “negative, throwaway comments”.
“The responsibility never switches off,” the Top 50 Gastropub operator added.
“It’s soul-destroying to work this hard, do my best for my staff and suppliers, and still ask what the point is when we’ve got a Government that clearly doesn’t see our value.”
Multiple operator Rob Barr, who runs pubs in West Sussex and Dorset, also criticised the remarks, describing them as “extremely disappointing”.
“I wouldn’t have her behind the bar after those comments. But if somehow, she was, I’d make her see the value of pubs, the value of publicans who go through daily stresses of running a business but also supporting our communities by listening to their stresses,” he told The MA.
Supporting communities
Barr said balancing day-to-day operations with his responsibilities as an employer means he can regularly work up to 100 hours a week.
“I’ll happily send her my schedule, which reflects on how many hours I work within the business while supporting jobs for local people and young people,” he continued.
The operator also accused the Government of failing to recognise the contribution made by hospitality businesses, despite politicians regularly championing the sector.
He pointed to Chancellor John Healey’s controversial post-Budget pint last week and argued recent policy decisions had done little to support businesses facing mounting cost pressures.
“Something has to give,” Barr said.
“We were told the cavalry were arriving, but they are either still sat behind the hill or they have arrived on miniature ponies.”
Other operators on social media have also chastised the MP, with some even calling for her resignation.
Among those calling for Reynolds to resign were bakery owner and sector campaigner Frankie Dyer, Wonky Table Group founder Andy Lennox and ART Hospitality founder and operations director Dorian Kirk.
Sharing a poster on Instagram accusing the minister of “crimes against employers”, the campaign stated: “A prominent position within our current Government advising on the Budget on behalf of the country. Clearly has never worked a day in her life.”
