UK’s Starmer stands by his Treasury chief after house rental rule breach
British Treasury Secretary Rachel Reeves has apologized for breaking the law by renting her London home without a licence.
Prime Minister Keir Starmer said Reeves would not take action because of what he described as an inadvertent mistake.
Reeves and his family moved from their home in south London to a state-owned flat next to the prime minister’s Downing Street residence after Labor was elected in July 2024.
The Daily Mail newspaper reported late Wednesday that Reeves did not have a rental license in the area, as required by the local authority. Unlicensed homeowners can be prosecuted or fined.
In a letter sent to Starmer by the Prime Minister’s office, Reeves said it was “an inadvertent mistake. As soon as it was brought to my attention we took immediate action and applied for a licence.”
Starmer said he had consulted the government’s ethics adviser, who concluded “there was no need for further investigation”.
“I am satisfied that after your apology this matter can be brought to an end,” he wrote.
Conservative Party leader Kemi Badenoch said this was not good enough and demanded Starmer launch a full investigation.
Reeves is already under pressure on public finances as he prepares to deliver his annual budget statement on November 26.
The Labor government has struggled to deliver the economic growth it promised. Inflation remains stubbornly high and the economic outlook remains weak, frustrating efforts to repair aging public services and ease the cost of living.
Reeves has indicated he may backtrack on his pre-election promise not to raise income tax or sales tax, arguing that the economy is in a worse shape than previously thought after 14 years of Conservative government.
Starmer has already lost members of his government to the scandal.
In September, Deputy Prime Minister Angela Rayner resigned because she could not pay enough taxes on the purchase of a house. Days later, Starmer fired the UK’s high-profile ambassador to Washington, Peter Mandelson, over his links to convicted sex offender Jeffrey Epstein.
