Rachel Reeves, the Chancellor, has found herself in even deeper water after new details emerged in her ongoing rental controversy.
Downing Street has confirmed that the Prime Minister’s independent ethics adviser is reviewing “new information” connected to the claims that Reeves illegally let out her family home without the proper licence.
The revelation comes as the Labour government tries to contain the growing scandal, which could see Reeves forced to repay thousands of pounds in rent to her tenants.
Despite the mounting pressure, No.10 insists that Prime Minister Sir Keir Starmer still has “full confidence” in his Chancellor and expects her to deliver the much-anticipated Budget on November 26.
Discovery of New Emails Sparks Fresh Investigation
According to a Downing Street spokesperson, the latest development stems from “a review of emails sent and received” by Reeves’ husband, Nicholas Joicey.
Those emails reportedly uncovered new evidence that has now been handed to Sir Keir and the ethics adviser, Sir Laurie Magnus.
While officials refused to share specifics, they hinted that the new details could reopen the issue that the Prime Minister had declared “closed” just 24 hours earlier.
The emails are expected to be made public later today, adding yet another twist to a scandal that has already rattled Westminster.
The Root of the Scandal
The row began when it was revealed that Reeves failed to obtain a landlord licence before renting out her £3,200-a-month family home in Dulwich, south London.
The rule—enforced by Southwark Council—requires landlords in certain parts of the borough to obtain a “selective licence” before leasing out their property.
Reeves has claimed that her letting agent never informed her of this requirement and that she immediately applied for the licence once she learned of the issue.
The Chancellor described the mistake as “inadvertent” and said she had been transparent with the Prime Minister, the Independent Adviser on Ministerial Standards, and the Parliamentary Commissioner for Standards.
Southwark Council’s Response
Southwark Council, which runs one of London’s strictest licensing regimes, confirmed that landlords are required to obtain a licence in specific areas “to protect tenants and ensure safe, well-maintained homes.”
While enforcement typically focuses on landlords who ignore warnings, the council did not confirm whether Reeves would face penalties.
Officials have also noted that under council rules, tenants can claim back up to 12 months of rent—potentially as much as £38,000 in Reeves’ case.
Political Backlash from All Sides
Unsurprisingly, opposition leaders have seized on the controversy.
Tory leader Kemi Badenoch called the situation “a complete disgrace,” urging Starmer to “grow a backbone and sack her” if the law has been broken.
Meanwhile, Shadow Chancellor Mel Stride told Sky News that Reeves’ position had become “untenable,” accusing the Prime Minister of trying to “bury the issue with a few quick letters.”
Priti Patel also weighed in, calling for Southwark Council to “prosecute Reeves just as they would any other landlord.”
Labour Defends Reeves
Senior Labour figures have rallied around the Chancellor.
Policing Minister Sarah Jones insisted Reeves should not resign, describing the matter as a simple mistake.
She explained that the Chancellor rented out her home through a lettings agency and “rectified the issue immediately” once she became aware of the missing licence.
Jones said, “She applied for the licence, told the Prime Minister, and informed the independent adviser on standards—it’s all being handled properly.”
Market Jitters and Economic Fallout
The controversy has already caused nervousness in financial markets.
Government borrowing costs ticked up slightly on Thursday morning, reflecting investor concerns over political stability ahead of next month’s Budget.
This development couldn’t come at a worse time for Reeves, who has faced criticism for proposing tax increases on buy-to-let homes in her first Budget.
Many landlords now accuse her of hypocrisy, pointing out that she failed to follow the same licensing rules she publicly praised in her own Leeds constituency just weeks ago.
A Case of Political Irony
Just days before the scandal broke, Reeves had praised Leeds City Council for expanding their own landlord licensing scheme, writing on social media that it was “vital for ensuring safe and decent homes.”
Critics now say that statement has come back to haunt her.
Local estate agents in Southwark added that many landlords were unaware of the new licensing rules, which came into force in November 2023—but questioned how the Chancellor could have missed it, given her political experience and policy focus on housing.
What Happens Next
With the ethics adviser now reviewing the newly discovered emails, Reeves’ future may hinge on what they reveal.
While Starmer continues to stand by her publicly, the renewed investigation has left Labour’s leadership facing uncomfortable questions about integrity, accountability, and double standards.
For Reeves, the timing couldn’t be worse. With less than a month before she delivers her first Budget, she must now battle not only economic uncertainty—but also a growing perception that she may have broken the very rules she helped create.