Starmer Supports Reeves After Rental Licence Controversy

The UK Prime Minister, Keir Starmer, has expressed support for Chancellor of the Exchequer, Rachel Reeves, following her admission of an error concerning the rental of her family home. Just weeks before a significant budget announcement, Reeves apologised after it was revealed that she let out her property in Dulwich without the required licence.

Reeves, who moved to a flat on Downing Street after Labour won the last election, stated that she was misadvised regarding the necessity of obtaining a licence. In correspondence released by Downing Street, she described her failure to secure the licence as an “inadvertent mistake.” Such selective licences are mandated for certain properties in specific areas, particularly for long-term rentals.

Details of the Incident

The licence, which would have cost approximately £945, is necessary for her south London property that is currently rented out for around £3,200 per month. The issue came to light when a reporter from the Daily Mail contacted her regarding the absence of the rental licence. Reeves acknowledged her oversight only at that point, leading her to promptly apply for the necessary documentation and issue an apology to Starmer.

In response to the situation, Starmer referred the matter to independent ethics adviser Laurie Magnus to evaluate whether there had been a breach of the UK government’s ministerial code. This scrutiny follows the resignation of former Deputy Prime Minister Angela Rayner last September due to a similar issue involving a breach of the code.

In a letter sent late on Wednesday, Starmer stated that Magnus advised no further action was necessary, given that Reeves had acted swiftly to rectify her mistake and provided an apology. While he did not explicitly confirm whether she had violated the ministerial code, he suggested that “an apology is sufficient resolution” for certain types of breaches. Starmer remarked, “I am satisfied that this matter can be drawn to a close.”

Political Repercussions and Future Considerations

The political opposition, particularly from the Conservative Party, has seized upon the incident, with party leader Kemi Badenoch calling for Reeves’ dismissal. This marks the first occasion on which the Conservatives have formally demanded her resignation. Badenoch argued, “If she [Reeves] can’t get a grip on her own paperwork, how is she going to get a grip on the economy?”

The timing of this controversy is particularly sensitive, occurring just ahead of the UK budget scheduled for November 26. Reeves is reportedly contemplating tax increases to address a £40 billion deficit in the nation’s finances, a move that could conflict with Labour’s election promise not to raise certain taxes.

Despite the support from Downing Street, there remains a palpable unease regarding the future of Reeves. Previous instances of public emotional displays, such as when she was filmed crying in the House of Commons, have raised concerns about her stability in the role. Speculation about her position could potentially destabilize financial markets, especially with the budget approaching.

Starmer faces the challenge of maintaining a cohesive cabinet, having already experienced significant personnel changes, including the departure of other senior ministers. The political landscape remains intricate as the Labour government navigates these challenges while preparing for a critical financial announcement.