Rachel Reeves has apologised for an ‘inadvertant error’ after it emerged she had not applied for a special license when renting out her family home in South London
Rachel Reeves has apologised for an “inadvertant error” after falling foul of local housing rules when she rented out her family home.
In a letter to Keir Starmer, the Chancellor said she was unaware of licensing requirements in Dulwich Wood, south London. In a response released by No10, the PM said he had spoken to his independent ethics adviser, Sir Laurie Magnus, who advised that a further investigation is not necessary.
Ms Reeves admitted she did not obtain the required “selective” rental licence for the property when she moved into No11 Downing Street last year. This is a requirement put in place in the ward by Southwark Council.
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She “sincerely” apologised for the mistake, which was revealed by the Daily Mail. Ms Reeves told the PM that “regrettably” she and her family were not aware a licence was needed.
Failing to get one can lead to a prosecution or a fine. The Chancellor is understood to have relied on the advice of a letting agent, which said it would advise if a licence was needed.
She wrote: “This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.” And her letter continued: “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, 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.” And he continued: “I am satisfied that this matter can be drawn to a close following your apology.”
Mr Starmer 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”.
His decision to back the Chancellor comes less than a month before the Budget, when she is expected to make difficult decisions. On Wednesday Mr Starmer refused to rule out an income tax hike on November 26.
Tory 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.”
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.”
Rachel Reeves’ letter in full
Dear Keir,
I wanted to make you aware of a matter which has been brought to my attention regarding my family home which we are letting out to tenants via an external lettings agency.
The property is situated in Dulwich Wood ward of Southwark Council. There are selective licensing requirements in this ward for renting out a property. Regrettably, 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 property is declared on the Members’ Register of Interests in line with requirements. I have today spoken to the Independent Adviser on Ministerial Standards and I have made the Parliamentary Commissioner for Standards aware.
I sincerely apologise for this error and I would be happy to answer any questions you may have.
Keir Starmer’s response
Dear Rachel
Thank you for your letter and for meeting with me this evening.
The public rightly expects the highest standards of conduct from the politicians who serve them. The Ministerial Code sets out these values and I have made it a core tenet of this Government’s mission to uphold them.
I have this evening consulted with my Independent Adviser on Ministerial Standards. 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. It is regrettable that the appropriate licence was not sought sooner and it is right that you have taken the appropriate steps today to address this. It is clear to me that you are treating this matter with the urgency and seriousness it deserves.