Chancellor Rachel Reeves admits 'mistake' to PM over family home rental

The Chancellor admitted an "inadvertent mistake" in renting out the Dulwich property since she moved into No11 Downing Street after Labour's election victory last summer

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Rachel Reeves has admitted an "inadvertent mistake" to Keir Starmer and his ethics adviser after failing to obtain a rental licence on her family home.

The Chancellor has rented out the Dulwich property since she moved into No11 Downing Street after Labour's election victory last summer.

But reports tonight said she had failed to obtain a "selective" licence from Southwark council to rent out the house. The local authority requires licences on privately rented properties in certain areas.

It is understood Ms Reeves did not receive advice from external agencies that a rental licence was required at the time of putting the house on the market.

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The Daily Mail said she has since submitted an application for a licence and has made Keir Starmer and his ethics adviser, Sir Laurie Magnus, aware.

A spokeswoman for the Chancellor told The Mirror: "Since becoming Chancellor Rachel Reeves has rented out her family home through a lettings agency.

"She had not been made aware of the licencing requirement, but as soon as it was brought to her attention she took immediate action and has applied for the licence."

They added: "This was an inadvertent mistake and in the spirit of transparency she has made the Prime Minister, the Independent Adviser on Ministerial Standards and the Parliamentary Commissioner for Standards aware."

According to Parliament's register of members' interests, Ms Reeves has rented out the property since September 2024, with the rental income paid to the Chancellor and her husband.

Tory leader Kemi Badenoch called on Mr Starmer to launch a full investigation.

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Meanwhile, Keir Starmer has failed to rule out a manifesto-busting hike to income tax at next month's Budget when quizzed at PMQs.

The Prime Minister insisted there would be no return to the years of austerity - but declined to repeat Labour's manifesto vow. At the General Election last year the party vowed "not to increase taxes on working people" - including income tax, VAT and national insurance - in government.

At PMQs the Tory leader Kemi Badenoch asked if he was still committed to the pledge. Mr Starmer swerved the question and said the government would announce its plans at the Chancellor Rachel Reeves's Budget on November 26.

It comes after claims Ms Reeves is considering a hike in income tax as she grapples with a £20billion-£30billion blackhole in order to stick to her spending rules. Among options reportedly being examined, the Treasury is said to be looking at adding 1p to the basic rate of income tax - bringing in around £8billion.

The Guardian suggested another option for the November 26 Budget could be a hike to the higher rates of income tax. Under existing rules, a 40% income tax rate kicks in for those earning above £50,271 and 45% for those earning over £125,140. A Treasury spokesman told The Mirror last week: “We do not comment on speculation around changes to tax.”