After acknowledging an unintended error, Rachel Reeves has informed Keir Starmer and his ethics adviser about her failure to secure a rental license for her family residence. The Chancellor has been renting out her property in Dulwich since moving into No11 Downing Street following Labour’s election triumph last summer.
Recent reports revealed that she neglected to obtain a “selective” license from Southwark council to rent out the house, a requirement for privately rented properties in specific areas. It appears that Ms. Reeves did not receive guidance from external agencies regarding the necessity of a rental license when she initially put the property on the market.
Subsequently, she has now applied for the license after being made aware of the oversight, and has notified Keir Starmer and Sir Laurie Magnus, his ethics adviser. A spokesperson for the Chancellor stated that since assuming office, Rachel Reeves has been renting out her family home through a lettings agency, emphasizing that she promptly took action upon learning of the licensing requirement.
Describing the situation as an inadvertent mistake, the spokesperson mentioned that for transparency, Ms. Reeves has informed the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards. According to Parliament’s register of members’ interests, Ms. Reeves has been renting out the property since September 2024, with the rental income directed to herself and her husband.
Meanwhile, Tory leader Kemi Badenoch has urged Mr. Starmer to initiate a comprehensive inquiry. At the same time, Keir Starmer has not ruled out the possibility of an income tax increase in the upcoming Budget, raising questions during PMQs. The Prime Minister assured no return to past austerity measures but refrained from reiterating Labour’s manifesto commitment not to raise taxes on working individuals in government.
During PMQs, Kemi Badenoch sought confirmation on the pledge, to which Mr. Starmer redirected, indicating that the government’s plans would be disclosed at Chancellor Rachel Reeves’s Budget on November 26. Recent speculations suggest that Ms. Reeves is contemplating an income tax hike to address a significant fiscal shortfall. Options being explored reportedly include adding 1p to the basic income tax rate, potentially generating around £8 billion.
As the November 26 Budget approaches, there are discussions about the possibility of increasing higher income tax rates. Currently, a 40% income tax rate applies to earnings above £50,271, and a 45% rate for those exceeding £125,140. A Treasury spokesperson declined to comment on the rumored tax changes.
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