Rachel Reeves has acknowledged an unintentional error to Keir Starmer and his ethics adviser after failing to secure a rental licence for her family residence. The Chancellor has been renting out the property in Dulwich since moving into No11 Downing Street following Labour’s election triumph last summer.
Recent reports revealed that she did not obtain a “selective” licence from Southwark council, which mandates licences for privately rented properties in specific areas. It appears that Ms. Reeves did not receive guidance from external sources regarding the licensing requirement when initially putting the house up for rent.
According to 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 had been renting out her family home through a letting agency. Upon being made aware of the licensing obligation, she promptly took steps to rectify the situation by applying for the licence.
Described as an inadvertent mistake, Ms. Reeves disclosed the matter to the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards. Parliament’s register of members’ interests indicates that she has been renting out the property since September 2024, with the rental income going to her and her husband.
Following these developments, Tory leader Kemi Badenoch urged Mr. Starmer to initiate a thorough investigation. Meanwhile, during PMQs, Keir Starmer did not rule out a potential increase in income tax at the upcoming Budget, raising concerns about a possible deviation from Labour’s manifesto pledge not to raise taxes on working individuals.
Amidst discussions about a significant budget shortfall, potential measures being considered include adding 1p to the basic rate of income tax and raising the higher rates of income tax. The Treasury declined to comment on speculations regarding tax changes ahead of the Budget on November 26.
