Copyright standard
Rachel Reeves is facing calls to be sacked after she admitted breaking a London borough’s housing rules when renting out her family home. The Chancellor told the Prime Minister she did not obtain the required “selective” rental licence for her £3,200-a-month Dulwich home when she moved into No 11 Downing Street following the election. “New information” about the breach has been passed to the Government’s ethics adviser Laurie Magnus, Downing Street confirmed on Thursday afternoon. The information is said to be emails sent and received by the Chancellor's husband, which are expected to be published later today. A spokesman said: "Following a review of emails sent and received by the chancellor’s husband, new information has come to light. This has now been passed to the prime minister and the independent adviser." 💬 Comment: Rachel Reeves' error matters. It shows there's one rule for us, another for them Sir Keir Starmer has continued to give his backing to Ms Reeves and No 10 insisted she would be delivering the Budget next month. In a letter to the PM, Ms Reeves “sincerely” apologised for her “inadvertent error” of not obtaining the licence, which was revealed by the Daily Mail. An exchange of letters between Sir Keir and Ms Reeves revealed they had met to discuss the matter on Wednesday evening, after it came to light. The Chancellor told the Prime Minister that “regrettably” she and her family were not aware a licence was needed in their area of the Southwark borough. Southwark Council requires people renting out their properties in certain areas to get one of the licences in advance. The council's website states: "You can be prosecuted or fined if you're a landlord or managing agent for a property that needs a licence and do not get one." The Prime Minister’s spokesman on Thursday repeatedly declined to say whether Ms Reeves had broken the ministerial code by failing to register for a licence or whether she would resign if she received a fine from Southwark council. "The ministerial code makes clear that in certain circumstances and in consultation with the independent adviser, an apology is sufficient resolution," he said. Policing Minister Sarah Jones on Thursday morning insisted Ms Reeves should not stand down. "No, she shouldn't," she told Times Radio. "She after the election, of course, moved into 11 Downing Street, as chancellors do. She has a family home in Southwark that she rented out through a letting agency. “Now, Southwark Council has what's called a selective licensing scheme. "Some boroughs have them, some don't ... The Chancellor wasn't aware that she had to apply for this selective licence. As soon as she became aware, she rectified the situation.” Reeves' family home in London was put up for rent after Labour won the election in July 2024 for £3,200 a month. The Chancellor is understood to have relied upon the advice of a letting agent, which said it would advise if a licence was needed. Ms Reeves told Sir Keir: “This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.” She added: “I sincerely apologise for this error and I would be happy to answer any questions you may have.” In his reply, the Prime Minister said he had consulted his independent adviser Sir Laurie, adding: “He has advised me that in relation to your inadvertent failure to secure the appropriate licence for your rental property – and in light of your prompt action to rectify the position, including your apology – further investigation is not necessary. “The Ministerial Code makes clear that in certain circumstances, an apology is a sufficient resolution. It is important that all ministers are able to acknowledge where they consider themselves to have fallen below the standards expected of them. “I am satisfied that this matter can be drawn to a close following your apology.” The Prime Minister said it was “regrettable that the appropriate licence was not sought sooner” but said he believed the Chancellor was “treating this matter with the urgency and seriousness it deserves”. Sir Keir’s decision to back Ms Reeves comes less than a month until the Budget, in which she is expected to have to make difficult fiscal decisions. It also follows on the heels of several high-profile exits from Government as a result of scandals. Among these was Angela Rayner, the former deputy prime minister and housing secretary, who resigned following a row about her tax affairs. Lord Mandelson was also sacked as ambassador to Washington after details of his relationship with the dead paedophile financier Jeffrey Epstein came to light. Conservative leader Kemi Badenoch had earlier called on the Prime Minister to “launch a full investigation” into Ms Reeves’ error. She added: “He once said ‘lawmakers can’t be lawbreakers’. “If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act.” A Conservative spokesperson added: "Rachel Reeves has broken the law and broken the ministerial code, but Keir Starmer is too weak to sack her. "Keir Starmer pledged to restore integrity to politics, but now he's laughing in the face of the British public. He should grow a backbone and sack the chancellor now." Daisy Cooper, Lib Dem deputy leader, said: “The Chancellor is meant to be delivering growth but the only thing she appears to be growing is the Government’s list of scandals. “Just weeks before the Budget, this risks seriously undermining confidence in this Government and its ability to focus on the urgent tasks at hand.”
