Rachel Reeves has acknowledged making an unintentional error by failing to secure a rental licence for her family home, as reported to Keir Starmer and his ethics adviser. The Chancellor has been renting out her Dulwich property since moving into No11 Downing Street following Labour’s election win last summer. However, it has come to light that she did not obtain a “selective” licence from Southwark council, which is mandatory for certain privately rented properties in the area.
Sources indicate that Ms. Reeves did not receive guidance from external entities regarding the necessity of a rental licence when putting the property on the rental market. Following this revelation, she promptly applied for the required licence and informed Keir Starmer and his ethics adviser, Sir Laurie Magnus.
A spokesperson for the Chancellor clarified that Rachel Reeves has been renting out her family home through a lettings agency since assuming the role of Chancellor. The spokesperson emphasized that the failure to obtain the licence was an inadvertent mistake, and upon being made aware of the requirement, immediate action was taken to rectify the situation. Transparency was maintained by informing the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards.
According to the Parliament’s register of members’ interests, Ms. Reeves has been renting out the property since September 2024, with the rental income directed to her and her spouse. In response to the situation, Tory leader Kemi Badenoch has urged Mr. Starmer to conduct a comprehensive investigation.
In a separate matter, Keir Starmer has not excluded the possibility of a potential increase in income tax, deviating from Labour’s manifesto promise made during the last General Election not to raise taxes on working individuals. During recent exchanges in Parliament, Mr. Starmer refrained from reaffirming this pledge, indicating that the government’s fiscal plans would be outlined at Chancellor Rachel Reeves’s Budget presentation on November 26.
Reports suggest that Ms. Reeves is contemplating an income tax hike to address a significant budget shortfall, with options under review including adding 1p to the basic rate of income tax, potentially generating around £8 billion. Speculation also surrounds the possibility of raising the higher rates of income tax in the upcoming Budget. The Treasury declined to comment on these potential tax changes, stating that they do not engage in public speculation regarding tax adjustments.