Rachel Reeves has acknowledged making an unintended error by failing to secure a rental licence for her family home, a matter she disclosed to Keir Starmer and his ethics adviser. The property in Dulwich has been rented out by the Chancellor since she relocated to No11 Downing Street following Labour’s election win last summer.

Reports have revealed that she did not obtain a “selective” licence from Southwark council, which is mandatory for renting out properties in specific areas. Sources indicate that Ms. Reeves was not informed by external agencies about the licensing requirement when she put the house on the rental market.

Following this revelation, Rachel Reeves has now applied for the necessary licence after informing Keir Starmer and his ethics adviser, Sir Laurie Magnus. An official spokesperson for the Chancellor confirmed that she had rented out her family home through a lettings agency since assuming office, and immediate action was taken to rectify the oversight upon being made aware of the requirement.

The inadvertent mistake was swiftly addressed with transparency, as the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards were all notified. According to the official register of members’ interests in Parliament, Ms. Reeves has been renting out the property since September 2024, with the rental income going to her and her husband.

In response to the situation, Tory leader Kemi Badenoch has called for a full investigation by Mr. Starmer. Meanwhile, during a recent session of PMQs, Keir Starmer did not rule out the possibility of a tax increase in the upcoming Budget. The Prime Minister affirmed a commitment to avoiding austerity but refrained from reiterating Labour’s manifesto pledge not to raise taxes on working individuals.

As speculation swirls about potential tax hikes to address a significant budget shortfall, options being considered reportedly include adding 1p to the basic rate of income tax or increasing higher tax rates. The Treasury has refrained from commenting on these speculations. The Budget announcement on November 26 is eagerly anticipated for further clarity on the government’s fiscal plans.