Emma Reynolds denies Budget breaches Labour manifesto tax pledges

Emma Reynolds has rejected claims that the Budget breached Labour's manifesto commitments on tax and working people, in an interview with GB News. The chief secretary to the Treasury told the programme that the manifesto promised not to increase the income tax rate, VAT or national insurance on employees, and that the Budget had kept those pledges.

GB News pressed Reynolds on whether landlords and savers count as working people. She said the additional tax on landlords and savers was 2% on the tax bands for property and savings, and argued it was not the same as income tax. She also said employers should not be classed as working people because they are companies, while drawing a distinction between employers and employees.

The interview turned to Paul Bowen, the pie shop owner who GB News said had criticised the Budget and said he would need to bake 30,000 extra pies a week to cover additional costs. Reynolds said she did not know which tax Bowen was referring to and cited the decision to take 70,000 small high street businesses out of business rates, with rates frozen for many others.

GB News also questioned Reynolds on welfare and defence. She said the government would legislate to bring the welfare bill down next year after the Milburn youth employment review in November and a PIP panel review, with proposals in the new year. She said the welfare bill was rising by £30 billion by the end of this Parliament and that half of it was pension costs.

On defence, Reynolds rejected claims that spending was being cut. GB News reported that she said the government would spend £300 billion on defence over four years and set out at the next spending review how it would reach 3% of GDP by 2030, after the review was delayed from spring to autumn.