Chancellor Rachel Reeves Faced Ethics Review Over Property Rental Licence
Chancellor Rachel Reeves was subject to an ethics review after it emerged she did not apply for a selective property rental licence before renting out her family home, though Prime Minister Rishi Sunak has stated her position is not in question.
The issue centres on whether Reeves breached the ministerial code, a 34-page document outlining standards in public life for government ministers. Following an exchange of letters released shortly before midnight yesterday, Prime Minister Sunak consulted with independent ethics advisor Sir Laurie Magnus, who determined no further investigation was necessary. Sir Keir Starmer, Leader of the Opposition, stated the breach was “inadvertent,” Reeves had rectified the situation by applying for the licence, and had offered an apology, adding, “The ministerial code makes clear that in certain circumstances, an apology is a sufficient resolution.”
Downing Street officials declined to confirm whether the ministerial code had been broken, stating that Sir Keir had received confidential advice from his ethics advisor. A Conservative spokesperson criticized the situation, saying, “It’s one rule for the Chancellor and another for everyone else,” and called for Reeves to be sacked. However, Kemi Badenoch suggested Reeves should only be removed if found to have broken the law. Southwark Council fined a letting agent and a landlord over £3,000 last year for similar offences, and councils across the UK levied £2.5 million in fines for non-compliance with selective licensing rules in the 2023-24 financial year, according to government guidance. Reeves’s team maintains her letting agent assured her a licence wasn’t required.
The incident raises questions about Reeves’s judgement, particularly given her previous support for expanding selective licensing schemes, such as the one in her Leeds West and Pudsey constituency. This comes at a sensitive time for the Labour party, as Reeves’s economic credibility has been central to their efforts to regain public trust in managing the nation’s finances. Officials indicated that the Prime Minister’s position remains firm, and the matter is considered closed, though Southwark Council could still pursue action.
