UK Chancellor Rachel Reeves Apologizes Over Rental License Error

UK Chancellor of the Exchequer Rachel Reeves has issued an apology following the revelation that she rented out her family home in Dulwich, London, without the necessary license. This incident comes just weeks before a critical budget presentation scheduled for November 26, 2025. Prime Minister Keir Starmer has acted quickly to address speculation regarding her future in the role.

The situation unfolded after it was disclosed that Reeves had let her property while living in a flat on Downing Street. She claimed to have been misinformed by a letting agent about the licensing requirements for her property. In a letter to the Prime Minister, Reeves described the omission as an “inadvertent mistake.” In certain areas, including where her property is located, a selective license is mandatory for long-term rentals. The cost of such a license is approximately £945, while her home is rented out for around £3,200 per month.

Reeves became aware of her licensing oversight after being contacted by the Daily Mail for comment. Following this inquiry, she promptly applied for the required license and expressed regret to the Prime Minister. Starmer 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.

In September, the resignation of former Deputy Prime Minister Angela Rayner due to a similar issue heightened concerns regarding compliance with the ministerial code. In his response to Reeves, Starmer indicated that Magnus had concluded that no further action was necessary since she had acted swiftly to rectify the situation and had apologized. He emphasized that an apology could suffice for certain breaches of the code.

Despite Starmer’s reassurances, political tensions remain high. Kemi Badenoch, the leader of the Conservative Party, has called for Reeves to be dismissed over her legal misstep. This marks the first occasion the Conservatives have directly demanded her resignation, highlighting the political stakes as the government prepares for the upcoming budget. Badenoch remarked, “It shouldn’t be one rule for them and another for the rest of us,” questioning how Reeves could effectively manage the economy if she struggles with her own paperwork.

Downing Street officials avoided confirming whether Reeves had indeed breached the ministerial code during a press briefing. Previous instances of speculation around her leadership have already caused unease in financial markets, with concerns that instability could arise from her potential departure so close to a crucial fiscal announcement.

Starmer is under pressure as he navigates his cabinet’s stability. Recent months have seen other high-profile resignations, including that of former Transport Secretary Louise Haigh, who left office after it was revealed she had a spent conviction related to a false robbery report.

As the UK government approaches its budget announcement, the developments surrounding Reeves raise questions regarding political accountability and the management of public office.