Rachel Reeves has acknowledged making an unintended error by failing to acquire a rental license for her family home, a property in Dulwich that she has rented out since moving to No11 Downing Street following the Labour Party’s election victory last summer.
Reports have revealed that she did not obtain a “selective” license from Southwark council, which is a requirement for renting out properties in specific areas. It appears that Ms. Reeves did not receive advice on the licensing requirement when putting the house up for rent.
In response to the situation, Rachel Reeves has now applied for the necessary license after realizing the oversight. She has informed Keir Starmer and his ethics adviser, Sir Laurie Magnus, about the issue.
A spokesperson for Ms. Reeves clarified that she had utilized a lettings agency to rent out her family home and was unaware of the licensing obligation initially. However, upon being informed, she promptly took action to rectify the situation and apply for the required license.
The Chancellor has also notified the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards as part of maintaining transparency regarding the matter.
According to the Parliament’s register of members’ interests, Rachel Reeves has been renting out the property since September 2024, with the rental income being received by her and her husband.
In response to the incident, Tory leader Kemi Badenoch has called for a full investigation by Keir Starmer. Meanwhile, questions have arisen about potential tax changes, with Keir Starmer not ruling out a tax increase in the upcoming Budget. The government’s plans are expected to be unveiled during Chancellor Rachel Reeves’s Budget announcement on November 26.
There are speculations about a possible increase in income tax rates to address a significant financial deficit. Options being explored include adding 1p to the basic rate of income tax, potentially generating around £8 billion in revenue. Additionally, discussions suggest the potential for adjustments to the higher rates of income tax in the Budget.
The Treasury has declined to comment on the tax changes under consideration, stating that they do not provide details on speculative tax modifications.
