Is Rachel Reeves out of the woods?
The chancellor has been on the centre of controversy during the last 24 hours, having admitted in a single day that she didn’t get hold of a rental licence earlier than permitting tenants to maneuver into her household house – thus breaking property regulation.
The saga raised additional questions across the authorities’s skill to observe its personal guidelines.
The chancellor promised she has now utilized for the required licence. In his response, prime minister Keir Starmer appeared to suppose it was an open-and-shut case after his impartial watchdog, Sir Laurie Magnus, stated there was no want for a probe.
After additional hypothesis on Thursday, it emerged that the property agent Harvey and Wheeler had supplied to use for the required rental licence on the chancellor’s house, however failed to take action.
They’ve now issued a public apology, saying: “We deeply remorse the problem brought on to our purchasers as they might have been beneath the impression {that a} licence had been utilized for.”
Downing Avenue then revealed a series of emails between Reeves’ husband and the letting brokers proving this model of occasions.
In a letter to the PM, Reeves stated: “Right now the letting company and my husband have discovered correspondence confirming that on 17 July 2024 the letting agent stated to my husband {that a} selective licence can be required and agreed that the company would apply for the licence on our behalf.
“They’ve additionally confirmed as we speak they didn’t take the applying ahead, partially attributable to a member of employees leaving the organisation. However, as I stated yesterday, I settle for it was our duty to safe the licence.
“I additionally take duty for not discovering this data yesterday and bringing it to your consideration.”
The emails had been revealed after Starmer’s consultant insisted the PM nonetheless has full confidence in his chancellor and indicated she would nonetheless be in publish when delivering the Funds.
Even so, the identical spokesperson nonetheless refused to make clear whether or not Reeves had breached the ministerial code on Thursday morning.
Whereas Downing Avenue will likely be hoping this all places the matter to mattress, as soon as and for all, right here’s a take a look at why Reeves’ “inadvertent mistake” brought on a lot frustration as we speak – and why opposition events will in all probability proceed banging on this drum for a while.
Why did this trigger such a stir?
It’s hardly Labour’s first scandal
Starmer’s deputy prime minister and housing secretary Angela Rayner needed to resign final month after it was revealed she underpaid on stamp obligation – by £40,000 – when shopping for a brand new house.
US ambassador Peter Mandelson was sacked over his hyperlinks to the late convicted intercourse offender Jeffrey Epstein.
Homelessness minister Rushanara Ali resigned when it emerged she had evicted her tenants solely to hike up the hire shortly after they moved out.
Anti-corruption minister Siddiq Tulip stop over her hyperlinks to her aunt Sheikh Hasina, former PM of Bangladesh, who’s beneath investigation over corruption.
Public well being minister Andrew Gwynne was sacked for feedback in a WhatsApp group.
Transport secretary Louise Haigh resigned following a beforehand undisclosed fraud conviction from 2013 resurfaced.
It’s price noting that Reeves did nonetheless breach property regulation, even when inadvertently.
All of this comes after Starmer’s repeated pledge to steer a authorities of “honesty and integrity”.
And when he was chief of the opposition, Starmer insisted on the peak of the partygate scandal in 2022 that “lawbreakers can’t be lawmakers”.
Reeves is weeks away from asserting the Funds
The chancellor will unveil the federal government’s tax and spending plans on November 26.
She’s extensively anticipated to hike up taxes – so the optics that she broke property regulation by not paying for the right licence will hardly encourage a lot confidence in her monetary plans.
The worst may very well be but to come back
Reeves might nonetheless face paying a £38,000 invoice because of this breach, based on The Telegraph.
Tenants of an unlicensed property can apply for a 12 months’s hire to be refunded.
Contemplating she has been charging her renters £3,200 a month since August 2024, which means Reeves might need to pay again her tenants £38,400.
