Rachel Reeves has acknowledged making an unintentional error to Keir Starmer and his ethics adviser by not obtaining a rental license for her family home. Since moving to No11 Downing Street following Labour’s election victory last summer, the Chancellor has been renting out the Dulwich property. However, it was reported that she failed to secure a “selective” license from Southwark council, which mandates licenses for privately rented properties in specific areas.
It has been revealed that Ms. Reeves did not receive guidance from external sources regarding the need for a rental license when putting the house on the rental market. Subsequently, she has applied for the license after being made aware of the requirement, informing Keir Starmer and his ethics adviser, Sir Laurie Magnus.
A spokesperson for the Chancellor stated that Rachel Reeves has been renting out her family home through a lettings agency since becoming Chancellor. They clarified that she was not informed about the licensing obligation initially but promptly took action upon learning about it, applying for the license. The spokesperson characterized the oversight as an inadvertent mistake and emphasized transparency by informing the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards.
According to Parliament’s register of members’ interests, Ms. Reeves has been renting out the property since September 2024, with the rental income going to her and her husband. Tory leader Kemi Badenoch has called for a thorough investigation by Mr. Starmer.
Meanwhile, at PMQs, Keir Starmer did not rule out a potential increase in income tax, deviating from Labour’s manifesto promise not to raise taxes on working individuals, including income tax, VAT, and national insurance. The Prime Minister declined to reiterate this pledge, stating that there would be no return to austerity but refrained from confirming the commitment. The government plans to announce its tax proposals at Chancellor Rachel Reeves’s upcoming Budget on November 26.
Amid discussions about a significant budget shortfall, Ms. Reeves is reportedly contemplating an income tax hike to meet spending requirements. The Treasury is exploring options such as adding 1p to the basic income tax rate, estimated to generate around £8 billion. Additionally, there is speculation about potential adjustments to higher income tax rates in the upcoming Budget. However, the Treasury declined to comment on specific tax changes, citing policy speculation.