Rachel Reeves has acknowledged an unintentional error regarding a rental license for her family home to Keir Starmer and his ethics adviser. The Chancellor has been renting out her property in Dulwich since moving into No11 Downing Street after the Labour party’s election win last summer.
Reports have revealed that she did not obtain a “selective” license from Southwark council to rent out the house, as required by the local authority for privately rented properties in certain areas. It appears that Ms. Reeves did not receive guidance from external agencies regarding the necessity of a rental license at the time of listing the house for rent.
Following the revelation, she has applied for a license and informed Keir Starmer and Sir Laurie Magnus, the ethics adviser. A spokesperson for the Chancellor stated that since assuming office, Rachel Reeves has rented out her family home through a lettings agency. Upon being made aware of the licensing requirement, she promptly took action and applied for the license.
Describing the incident as an inadvertent mistake, the spokesperson mentioned that she has informed the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards for transparency. According to 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, Tory leader Kemi Badenoch has urged Mr. Starmer to conduct a thorough investigation. Meanwhile, Keir Starmer has not ruled out a potential increase in income tax contrary to Labour’s manifesto promise not to raise taxes on working individuals. The Prime Minister assured that there would be no return to austerity but refrained from reaffirming the manifesto vow during a recent session of PMQs.
Amidst discussions about a potential income tax hike to address a significant budget shortfall, the Treasury is reportedly exploring options such as adding 1p to the basic rate of income tax, which could generate around £8 billion. Speculation also suggests a potential increase in the higher rates of income tax in the upcoming Budget on November 26. The Treasury has declined to comment on these speculations.
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