Prime Minister Sir Keir Starmer is facing mounting pressure after dismissing calls for an investigation into his Chancellor, Rachel Reeves, who admitted breaking rules when renting out her family home in South London.
The Conservatives have accused the government of hypocrisy, saying the Chancellor’s position is “untenable” after it emerged she had failed to obtain a required selective rental licence for the property, which is reportedly being let for around £3,200 a month.
In a letter to the Prime Minister, Reeves apologised, saying: “We were not aware that a licence was necessary and so we did not obtain the licence before letting the property out. This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.”
The selective rental licence, which costs £945 in the Southwark area, must be obtained and paid in advance by landlords before letting a property. Failure to comply can result in a fine or prosecution.
Starmer, however, rejected Conservative calls for further action, saying the ministerial code “makes clear that in certain circumstances an apology is sufficient resolution.” In his reply, he told Reeves: “It is clear to me that you are treating this matter with the urgency and seriousness it deserves.”
Downing Street has refused to say whether Reeves’ failure constitutes a breach of the ministerial code, but Starmer’s decision to stand by his Chancellor has prompted accusations from opponents that Labour is applying one rule for themselves and another for everyone else.
The controversy comes just weeks before Reeves is due to deliver her first Budget, which is expected to be one of the most politically charged in years.
Those close to Reeves insist the omission was a genuine oversight and that she was not advised by her letting agent about the licensing requirement.
For now, the Prime Minister is backing her. But with the Budget looming and questions of integrity once again dominating Westminster, this row is unlikely to disappear quickly.
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