PRIME MINISTER Keir Starmer has backed chancellor Rachel Reeves after she apologised for failing to obtain the correct licence when renting out her family home, rejecting opposition calls for a full investigation.
Reeves admitted on Wednesday (29) to an "inadvertent mistake" after failing to secure the required selective rental licence for her south London property when she moved into her Downing Street residence following Labour's election victory in July 2024.
"This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence," Reeves wrote in a letter to Starmer. "I sincerely apologise for this error."
In his response, Starmer said his independent ethics adviser had concluded that "further investigation is not necessary" and he was "satisfied" the matter could be closed. He noted that the ministerial code of conduct "makes clear that in certain circumstances, an apology is a sufficient resolution".
"It is regrettable that the appropriate licence was not sought sooner and it is right that you have taken the appropriate steps today to address this," the prime minister added.
However, Tory leader Kemi Badenoch urged Starmer to "launch a full investigation", warning that if Reeves had broken the law, "he will have to show he has the backbone to act". Shadow chancellor Mel Stride told Sky News that Reeves' position was not tenable.
The incident marks another embarrassing blow for Starmer's centre-left administration, coming just weeks after Angela Rayner resigned as deputy prime minister and housing secretary in September after a report found she had underpaid property tax.
The timing is particularly awkward as it emerges less than a month before Reeves is due to unveil a crucial budget on November 26. She has already indicated that tax rises and spending cuts are likely amid weak economic growth, high borrowing and persistent inflation.
The Telegraph reported on Thursday (30) that her ministry is considering raising income tax, a potentially damaging political move that would breach pre-election promises made last year.
Labour has faced mounting challenges since winning power 15 months ago, with the government struggling on immigration and other key policy areas. This has contributed to surging support for Nigel Farage's hard-right Reform UK party.
(Agencies)
