Rachel Reeves has acknowledged making an unintentional error by failing to secure a rental license for her family home, as reported to Keir Starmer and his ethics advisor. Since moving into No11 Downing Street following Labour’s election victory last summer, the Chancellor has been leasing out her property in Dulwich. However, it has come to light that she did not obtain a “selective” license from Southwark council, a requirement for renting out properties in certain areas.

Reports indicate that Ms. Reeves did not receive guidance from external sources regarding the need for a rental license when she put the house on the market. Following this revelation, she promptly applied for the license after being made aware of the requirement and informed Keir Starmer and Sir Laurie Magnus, his ethics advisor.

In a statement to The Mirror, a spokesperson for the Chancellor explained that Rachel Reeves had engaged a letting agency to rent out her family home since assuming her role. The spokesperson clarified that the failure to obtain the license was an inadvertent mistake, emphasizing the Chancellor’s commitment to transparency by informing the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards.

According to the Parliament’s register of members’ interests, Ms. 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 situation, Tory leader Kemi Badenoch has called for a thorough investigation by Keir Starmer.

Meanwhile, during PMQs, Keir Starmer did not rule out a potential increase in income tax, deviating from Labour’s manifesto promise made during the last General Election not to raise taxes on working individuals. The Prime Minister avoided confirming the commitment to this pledge, stating that the government’s fiscal plans would be unveiled at Chancellor Rachel Reeves’s Budget on November 26.

Amid discussions of a significant budget shortfall, it is speculated that income tax rates could see adjustments, including a potential 1p increase in the basic rate of income tax, generating approximately £8 billion. The Guardian also suggested the possibility of raising higher income tax rates in the upcoming Budget. The Treasury declined to comment on these speculations about tax changes.

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