Starmer rejects probe after Reeves admits housing rules breach

(MENAFN) Prime Minister Keir Starmer has ruled out an investigation into Chancellor Rachel Reeves after she apologised for failing to secure a required rental licence for her London property, describing the breach as an “inadvertent mistake.”

In a letter addressed to the prime minister, Reeves admitted she had not obtained the “selective” licence needed to rent out her Southwark home and “sincerely” apologised for the oversight. After consulting his independent ethics adviser, Sir Laurie Magnus, Starmer said he was satisfied the issue was resolved and saw “no need for further action.”

Opposition parties, however, criticised the decision, with Conservatives demanding Reeves’ dismissal and a full inquiry.

Reeves reportedly learned of the problem after being contacted by a newspaper seeking comment. Following their discussion that evening, she wrote to Starmer explaining she was unaware of the licence requirement when her family rented out the property upon moving into Downing Street last year.

“This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence,” Reeves wrote. “I sincerely apologise for this error and I would be happy to answer any questions you may have.”

Starmer said the public expected “the highest standards,” but confirmed that Sir Laurie had decided against an inquiry, noting Reeves’ swift apology and corrective steps.
Sources close to the Chancellor said her letting agent had assured her it would notify her if a licence was required but failed to do so.

The property, rented for $4,000 a month, falls under Southwark Council’s selective licensing scheme, which costs about $1,181 and aims to improve housing standards, tackle crime, and ensure landlords meet legal obligations. Failure to obtain a licence can result in prosecution or an unlimited fine.

Ironically, Reeves has previously endorsed such local licensing efforts. Earlier this month, she praised Leeds City Council for expanding the programme, writing online that landlords “must meet certain standards to ensure the property is safe and in a decent state of repair.”
Tenant advocacy group Acorn criticised the Chancellor’s lapse, saying it was “laughable” for senior officials to support regulations they do not follow themselves.

The revelation comes at a sensitive moment for Reeves as she prepares next month’s Budget amid rumours the government may abandon its pledge not to raise income tax.

Conservative leader Kemi Badenoch mocked the incident, saying: “If the chancellor can't even get on top of her own paperwork, how is she going to get on top of the country's paperwork.”

Shadow Chancellor Sir Mel Stride accused Starmer of trying to “bury the issue with a quick exchange of letters,” urging him to “show some backbone” and order an inquiry.

However, Police Minister Sarah Jones defended Reeves, saying she had “made a mistake” but took immediate steps to rectify it. “She rectified the mistake and she’s apologised for it,” she told a news agency.

Liberal Democrat deputy leader Daisy Cooper added that the controversy “risks seriously undermining confidence in this government just weeks before the Budget.”

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