Rachel Reeves has acknowledged an unintentional oversight to Keir Starmer and his ethics adviser after failing to secure a rental licence for her family home. The Chancellor has been renting out her property in Dulwich since moving into No11 Downing Street following Labour’s election victory last summer.
Reports have revealed that she neglected to obtain a “selective” licence from Southwark council to rent out the house, as required by the local authority for privately rented properties in specific areas. It appears that Ms. Reeves did not seek advice from external agencies regarding the necessity of a rental licence when putting the house on the market.
According to a report by the Daily Mail, she has now applied for the licence and informed Keir Starmer and his ethics adviser, Sir Laurie Magnus. A spokesperson for the Chancellor stated that since assuming office, Rachel Reeves has been renting out her family home through a lettings agency. They clarified that she was unaware of the licensing requirement initially but promptly took action upon being informed and has since applied for the licence.
Describing the situation as an inadvertent mistake, the spokesperson mentioned that in the interest of transparency, Ms. Reeves has informed the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards. As per Parliament’s register of members’ interests, Ms. Reeves has been renting out the property since September 2024, with the rental income going to her and her husband.
In response to the situation, Tory leader Kemi Badenoch has urged Mr. Starmer to initiate a thorough investigation. Meanwhile, at a recent PMQs session, Keir Starmer did not rule out the possibility of a tax increase in the upcoming Budget, hinting at a potential deviation from Labour’s manifesto pledge made during the last General Election.
There are speculations that Ms. Reeves is contemplating an increase in income tax to address a substantial budget deficit. Various options, including adding 1p to the basic rate of income tax, are reportedly under consideration by the Treasury. Additionally, suggestions have been made about raising the higher rates of income tax in the upcoming Budget. However, a Treasury spokesperson declined to comment on these speculative tax changes.
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