Speaking during Treasury questions in the House of Commons yesterday (Tuesday 3 November), Reynolds, who is also MP for Wycombe, said she wanted to “correct the record”.
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She said: “I would like to correct the record here. 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, the local pub and so many more.”
The comments come after Reynolds told GB News earlier on in the week she did not think employers were “working people”.
She made the remarks when questioned about increases to taxes on landlords’ rental income and savers’ interest in the Autumn Budget, and whether this broke Labour’s pledge not to raise taxes on working people.
Short-sighted comments
Speaking to Camilla Tominey, 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.”
The comments prompted backlash from hospitality operators who said ministers did not understand the realities of running a business.
Frisco Group managing director Heath Ball described the remarks as “short-sighted”.
Extremely disappointing
“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.
Echoing Ball, multiple operator Rob Barr, who runs pubs in West Sussex and Dorset, said the message was “extremely disappointing”, adding he also often works around 100 hours each week.
“I wouldn’t have [Reynolds] 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.
Other operators on social media also chastised the MP, with some even calling for her resignation.
It followed operators’ criticism of Budget measures including inflation-linked alcohol duty increases from February and higher wage costs, while calls for a hospitality VAT cut went unanswered.
Speaking to The MA, operators warned the changes would curb investment and hiring, and threaten the long-term viability of some pub businesses.
