Starmer has received ‘new information’ about Reeves’ rental arrangements – No 10

Sir Keir Starmer and his independent ethics adviser have received “new information” regarding rental arrangements for the Chancellor’s family home, Downing Street has said.

No 10 believes the exchange will exonerate Rachel Reeves, it is understood, after she admitted to mistakenly breaching local council housing rules by failing to obtain a rental licence.

The Prime Minister retains “full confidence” in Ms Reeves after seeing the exchange and she will deliver the November 26 Budget, a No 10 spokesman said.

The emails are expected to be published later on Thursday.

The No 10 spokesman told reporters: “Following a review of emails sent and received by the Chancellor’s husband, new information has come to light.

“This information has been passed to the Prime Minister and his independent adviser.”

It would be “inappropriate” to give more details, the official said despite repeated questions.

Asked whether the highly-anticipated November 26 Budget would be delivered by the current Chancellor on the expected date, the spokesman confirmed it would.

Sir Keir had sought to draw a line under the issue after Ms Reeves apologised for the error.

In a letter to the Prime Minister on Wednesday, the Chancellor admitted she did not obtain a “selective” rental licence required to rent out her London home and apologised for the “inadvertent error”.

Ms Reeves had told Sir Keir that “regrettably” she and her family were not aware a licence was needed in their area of Southwark in London, where they rented out their home for £3,200 a month after moving into No 11.

The Chancellor is understood to have relied upon the advice of a letting agent, which said it would advise if a licence was needed.

Mistake

Ms Reeves told Sir Keir: “This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.”

She added: “I sincerely apologise for this error and I would be happy to answer any questions you may have.”

In his response, Sir Keir said he was happy the “matter can be drawn to a close” after consulting his ethics adviser, who decided against launching a probe.

“He has advised me that in relation to your inadvertent failure to secure the appropriate licence for your rental property – and in light of your prompt action to rectify the position, including your apology – further investigation is not necessary,” the Labour leader wrote.

He added it was “regrettable that the appropriate licence was not sought sooner” but he believed the Chancellor was “treating this matter with the urgency and seriousness it deserves”.

No 10 declined to say whether Ms Reeves broke the Ministerial Code, noting that the standards rules set out that an apology is a “sufficient resolution” in certain cases.

Opposition critics have argued the Government has questions to answer and demanded an investigation.

Southwark Council said only landlords who ignore selective licence warning letters are penalised, implying Ms Reeves should avoid a fine as she immediately applied for the licence when she became aware of her error.

A spokesperson for the council said: “Southwark Council requires private landlords to acquire a selective licence in order to rent out their homes if they live in specific areas. This is in order to protect tenants and ensure landlords are complying with housing requirements, providing safe, well-maintained homes.

“Selective licences are acquired by sending applications to the council, which we then assess and approve subject to conditions.

“When we become aware of an unlicensed property, we issue a warning letter advising the landlord that they have 21 days to apply for a licence – enforcement action such as fines are reserved for those who do not apply within that time or where a property is found to be in an unsafe condition.

“We cannot comment on individual cases.”

Tory leader Kemi Badenoch said on X: “This whole thing stinks.

“The Prime Minister needs to stop trying to cover this up, order a full investigation and, if Reeves has broken the law, grow a backbone and sack her!”

The row follows several high-profile exits from Government as a result of scandals, including former deputy prime minister Angela Rayner who stepped down over her tax affairs.