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Why The Rachel Reeves' Property Saga Is Getting Very Messy For The PM

Why The Rachel Reeves' Property Saga Is Getting Very Messy For The PM
Rachel Reeves' admission that she did not obtain a rental licence before allowing tenants to move into her family home It seems Keir Starmer is still not out of the woods when it comes to chaos within his own top team.Chancellor Rachel Reeves admitted overnight that she did not obtain a rental licence before allowing tenants to move into her family home – thus breaking property law.This saga raises further questions around the government’s ability to follow its own rules.The chancellor promised she has now applied for the required licence. In his response, Starmer seemed to think it was an open-and-shut case after his independent watchdog, Sir Laurie Magnus, said there was no need for a probe.But the prime minister’s spokesperson told reporters on Thursday afternoon new evidence had emerged around the case.He said: “Following a review of emails sent and received by the chancellor’s husband [Nick Joicey] new information has now come to light.“This has now been passed to the prime minister and his independent adviser. It would be inappropriate to comment further.”Starmer’s representative insisted he still has full confidence in his chancellor and indicated she would still be in post when delivering the Budget.These comments came hours after the same spokesperson refused to clarify whether Reeves had breached the ministerial code on Thursday.Questions also remain over just what evidence Sir Laurie saw which meant he was happy to conclude the case last night – and if these new emails will warrant a new investgation.As opposition parties call for an investigation, here’s why Reeves’ “inadvertent mistake” is already causing so much frustration – and why the drama is definitely not over.Why is this so embarrassing?It’s hardly Labour’s first scandalStarmer’s deputy prime minister and housing secretary Angela Rayner had to resign last month after it was revealed she 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 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 over corruption.Public health minister Andrew Gwynne was sacked for comments in a WhatsApp group.Transport secretary Louise Haigh resigned following a previously undisclosed fraud conviction from 2013 resurfaced.All of this comes after Starmer’s repeated pledge to lead a government of “honesty and integrity”.It’s also worth remembering when he was leader of the opposition, Starmer insisted at the height of the partygate scandal in 2022 that “lawbreakers cannot be lawmakers”.Reeves is weeks away from announcing the BudgetThe chancellor will unveil the government’s tax and spending plans on November 26.She’s widely expected to hike up taxes – so the optics that she broke property law by inadvertently not paying for the correct licence will hardly inspire much confidence in her financial plans.The worst could be yet to comeReeves could face paying a £38,000 bill as a result of this breach, according to The Telegraph.Tenants of an unlicensed property can apply for a year’s rent to be refunded.Considering she has been charging her renters £3,200 a month since August 2024, that means Reeves might have to pay back her tenants £38,400.Southwark council could also now investigate the chancellor for not obtaining the correct “selective” licence which costs around £900.Related...Downing Street Refuses To Say If Rachel Reeves Broke The Ministerial Code Over Renting Her Home OutFresh Headache For Starmer As Reeves Admits To Unlawfully Renting Out Home Without Correct LicenceRachel Reeves Blames Brexit As She Prepares To Raise Taxes And Cut Spending

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