Britain’s Chancellor of the Exchequer Rachel Reeves gave her keynote speech during the annual Labour Party conference in Liverpool, England on Monday, September 29, 2025. The conference was filled with excitement and anticipation as the party looked towards the future and the potential for change under Reeves’ leadership. However, the chancellor has recently found herself at the center of controversy, raising questions about her ability to lead and follow the rules.
The saga began when it was revealed that Reeves had not obtained a rental licence before allowing tenants to move into her family home, thus breaking property law. This admission sparked further speculation and raised concerns about the government’s ability to follow its own rules. In response, Reeves promised to rectify the situation by applying for the required licence. Prime Minister Keir Starmer seemed to think it was a closed case after his independent watchdog, Sir Laurie Magnus, stated that there was no need for a probe.
However, the situation took a turn when it was revealed that the estate agent, Harvey and Wheeler, had offered to apply for the necessary rental licence on Reeves’ home but failed to do so. They have since issued a public apology, stating, “We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for.” This revelation was followed by the publication of a chain of emails between Reeves’ husband and the letting agents, confirming their version of events.
In a letter to the prime minister, Reeves took full responsibility for the situation, stating, “Today the letting agency and my husband have found correspondence confirming that on 17 July 2024 the letting agent said to my husband that a selective licence would be required and agreed that the agency would apply for the licence on our behalf. They have also confirmed today they did not take the application forward, in part due to a member of staff leaving the organization. Nevertheless, as I said yesterday, I accept it was our responsibility to secure the licence. I also take responsibility for not finding this information yesterday and bringing it to your attention.”
The emails were published after Starmer’s representative insisted that the prime minister still had full confidence in his chancellor and indicated that she would still be in her post when delivering the Budget. However, the same spokesperson refused to clarify whether Reeves had breached the ministerial code on Thursday morning. While Downing Street may hope that this puts the matter to rest, the opposition parties are likely to continue pressing the issue.
So why did this seemingly minor mistake cause such a stir? It’s hardly the first scandal to hit the Labour Party. Just last month, Starmer’s deputy prime minister and housing secretary, Angela Rayner, had to resign after it was revealed that she had underpaid on stamp duty by £40,000 when buying a new home. US ambassador Peter Mandelson was sacked over his links to the late convicted sex offender Jeffrey Epstein. Homelessness minister Rushanara Ali resigned when it emerged that she had evicted her tenants only to hike up the rent shortly after they moved out. Anti-corruption minister Siddiq Tulip quit over her links to her aunt Sheikh Hasina, former PM of Bangladesh, who is under investigation for corruption. Public health minister Andrew Gwynne was sacked for comments made in a WhatsApp group. And transport secretary Louise Haigh resigned following a previously undisclosed fraud conviction from 2013 resurfaced.
It’s worth noting that Reeves did still breach property law, even if it was unintentional. This comes after Starmer’s repeated pledge to lead a government of “honesty and integrity.” As leader of the opposition, Starmer insisted at the height of the partygate scandal in 2022 that “lawbreakers cannot be lawmakers.” So it’s understandable that this latest revelation has caused frustration and disappointment among the public and opposition parties.
What makes this situation even more concerning is that Reeves is just weeks away from announcing the Budget. As the chancellor, she will unveil the government’s tax and spending plans on November 26. It’s widely expected that she will have to raise taxes to fund the government’s plans, and the optics of her breaking property law by not obtaining the correct licence will hardly inspire confidence in her financial decisions.
But the worst may be yet to come for Reeves. According to The Telegraph, she could still face a bill of £38,000 as a result of this breach. Tenants of an unlicensed property can apply for a year’s rent to be refunded,
