Sir Keir Starmer has refused calls for an investigation after Chancellor Rachel Reeves apologised for failing to obtain a required rental licence before letting her London family home. Reeves told the prime minister she had not realised a Southwark “selective” licence was needed after moving into Downing Street and described the omission as an inadvertent mistake. She said she had applied for the licence as soon as the issue was raised and offered to answer questions.
The matter came to light when the Daily Mail contacted Reeves for comment. The prime minister and Reeves met the same evening to discuss the situation. Sir Keir said he had consulted the government’s independent ethics adviser, Sir Laurie Magnus, who decided no further investigation was necessary given Reeves’s prompt action and apology. Sir Laurie’s advice has previously led to ministers standing down.
Conservatives called for a full probe and for Reeves to be dismissed. Tory leader Kemi Badenoch cited Sir Keir’s past remark that “lawmakers can’t be lawbreakers” and said the chancellor must show she can act if she did break the law. Shadow Chancellor Sir Mel Stride urged a proper investigation and argued the exchange of letters between Reeves and the prime minister looked like an attempt to close the matter quickly. He said the government had promised to restore integrity and that recent ethics controversies undermined that claim.
Police Minister Sarah Jones and other government figures rejected calls for Reeves’s resignation. Jones said Reeves had made a mistake, rectified it as soon as she was aware, informed the prime minister and parliamentary authorities, and apologised.
Reeves’s team say her letting agent had assured her it would flag any licensing requirement but did not do so. The property was advertised for rent after Labour’s July 2024 election victory for £3,200 a month. Southwark Council requires private landlords in the area to hold a selective licence intended to raise housing standards and tackle issues such as poor maintenance and anti-social behaviour. The council warns that landlords or agents who fail to obtain a required licence can be prosecuted or fined, and if taken to court the landlord or agent could face an unlimited fine.
Reeves — described in the correspondence as MP for Leeds West and Pudsey — has supported councils’ use of selective licensing, recently welcoming Leeds City Council’s decision to expand the scheme and saying it helps ensure private tenants have safe, decent housing. The Liberal Democrats’ deputy leader Daisy Cooper said the episode risked undermining confidence in the government ahead of the Budget, arguing it added to a growing list of scandals.
With the ethics adviser declining to open an inquiry, Sir Keir said he was content the matter could be brought to a close, while opponents continue to press for further scrutiny.
