Reeves under fresh pressure as new emails passed to Starmer in rent licence row: latest

Local authorities in England and Wales have the power to introduce a licensing scheme covering all privately rented properties in a certain area.

It is designed to safeguard tenants against landlords letting out poorly-maintained properties, but it also might be introduced because of concerns about persistent anti-social behaviour problems in rental homes.

If a private landlord wants to rent out a property in that designated area then they have to apply to obtain a licence.

Local authorities must contact people in the area to make them aware if there are plans to introduce the scheme, and they should display information about it on their website.

But it is the landlord’s responsibility to apply for a licence if they need one, even if they are advised by a letting agent to manage their property.

If a property does not have the correct licence, then a landlord and letting agent could be charged penalties or face prosecution.

This could be an unlimited fine or a financial penalty of up to £30,000 per offence.

Landlords could face a rent repayment order being made against them – meaning they would have to repay rent that was collected during the period that the property was unlicensed, for up to a year.

The Conservatives have called for an investigation and said Reeves should be sacked if she is found to have broken the law.

Leader of the Conservative Party Kemi Badencoch wrote in a post on X: “The Prime Minister must launch a full investigation.

“He once said ‘lawmakers can’t be lawbreakers’. If, as it appears, the Chancellor has broken the law, then he will have to show he has the backbone to act.”

The Independent’s political editor David Maddox reports:

This morning it appeared that the prime minister had acted swiftly to close down yet another scandal enveloping one of his senior ministers.

But the row over Rachel Reeves’ failure to get the proper licence to rent out her former home is not going away quickly.

It did not help that the chancellor had been campaigning in her Leeds constituency for similar landlord crackdowns or that she may be forced to pay back thousands of pounds in rent.

But now new emails are emerging which could shed yet more light on the subject.It all seems to be following a pattern with what happened to now former deputy prime minister Angela Rayner with her stamp duty avoidance and Louise Haigh with her arrest over falsely declaring a phone had been stolen.

Both ended up resigning and damaging an already beleaguered government. Sir Keir will be hoping though that he can save his chancellor.

The Independent’s political correspondent Millie Cooke reports:

Overnight on Thursday, it emerged that Rachel Reeves failed to obtain a rental licence for her family home – a mistake that she said was an “inadvertent error”.

Southwark Council requires people renting out their properties in certain areas to get a licence in advance, and not doing so can lead to a prosecution or a fine.

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

The revelation came just days after Ms Reeves, who is also MP for Leeds West and Pudsey, posted on her verified Facebook page welcoming Leeds City Council’s decision to expand its use of the scheme.

In an attempt to draw a line under the matter, No 10 said her apology – which she provided to the PM in a letter last night – was a “sufficient resolution”, adding that his ethics adviser had decided against launching a probe into the issue.

However, his spokesperson repeatedly declined to say whether standards rules had been breached, or if the prime minister or independent watchdog Sir Laurie Magnus had seen evidence of Ms Reeves’ version of events.

Downing Street rejected suggestions that the chancellor had got away “scot-free” after a “stitch-up” between Sir Laurie and the prime minister to avoid spooking the markets.

But just minutes before the markets closed, Downing Street said that Sir Keir Starmer and his independent adviser on ministerial standards have been passed “new information” in emails sent and received by the chancellor’s husband regarding their rental arrangements.

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”.

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.

A No 10 spokesman said: “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.”

The spokesman added Sir Keir “has full confidence” in Ms Reeves and that she would be delivering the highly-anticipated November 26 Budget.

Asked whether the autumn statement would be delivered by the current Chancellor on the expected date, the official confirmed it would.

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

It reopens the row surrounding Rachel Reeves’ breach of local council housing rules by failing to obtain a rental licence.