Starmer Supports Reeves After Rental Licence Controversy

UK Prime Minister Keir Starmer has publicly supported Chancellor of the Exchequer Rachel Reeves following her apology for renting out her family home in Dulwich without the necessary licence. This incident comes just four weeks before a critical budget presentation scheduled for November 26, 2025.

Reeves disclosed that she had been incorrectly advised about the licensing requirements after moving into a flat on Downing Street. In a letter to Starmer, she described her failure to obtain a “selective licence” as an “inadvertent mistake.” Such licences are essential for certain properties used for long-term rentals in specific areas, costing approximately £945. Her Dulwich property, which is rented out for around £3,200 per month, became a focal point of scrutiny after the Daily Mail inquired about the lack of a rental licence.

Upon learning of the issue, Reeves stated she quickly applied for the licence and apologised to Starmer. The Prime Minister referred the matter to Laurie Magnus, the independent ethics adviser, to assess whether there had been a breach of the UK government’s ministerial code. This code requires transparency and accountability from ministers, and breaches have previously led to significant consequences, including the resignation of former deputy prime minister Angela Rayner last September.

In a response to Reeves, Starmer indicated that Magnus advised him no further action was necessary, as she acted promptly to rectify the situation. While he did not explicitly confirm whether Reeves had violated the ministerial code, he suggested that “an apology is sufficient resolution” for certain breaches. “I am satisfied that this matter can be drawn to a close,” stated Starmer.

The controversy has drawn sharp criticism from political rivals, particularly from Kemi Badenoch, leader of the Conservative Party, who has called for Reeves to be dismissed for breaching regulations. Badenoch emphasized the need for accountability, stating, “If she [Reeves] can’t get a grip of her own paperwork, how is she going to get a grip of the economy?” This marks a significant escalation in the political discourse surrounding Reeves, as it is the first time the Conservatives have called for her resignation amid ongoing criticism.

As the UK government prepares for the upcoming budget, the implications of this controversy could extend beyond political rivalry. Reeves is reportedly contemplating tax increases to address a substantial £40 billion gap in the nation’s finances, which may contradict Labour’s election promise not to raise specific taxes.

Historically, speculation about Reeves’s position has created unease in financial markets, raising concerns about stability in the lead-up to the budget. The recent uproar could potentially require Starmer to undertake another cabinet reshuffle, following previous changes that resulted from the departure of senior ministers.

The political landscape remains tense as the government navigates both internal challenges and pressing economic issues, with all eyes now on the forthcoming budget and its implications for the UK’s financial future.