Reeves should be sacked if she broke house rental rules, says Badenoch

Rachel Reeves must be sacked as chancellor if she broke any laws in failing to get a licence to rent out her south London home, Kemi Badenoch has said, arguing that it was up to the chancellor to have been on top of the necessary paperwork. With pressure building on Reeves despite Keir Starmer saying he believed the chancellor’s apology for an “inadvertent” breach of Southwark council’s rules was sufficient, Badenoch said this was not the end of the matter. “I think that the more I hear about the story, the more questions there are to answer,” the Conservative leader told reporters after a speech on London’s South Bank. The rules about the licence originated in a 2004 law brought in by Labour, Badenoch said, adding that Reeves had “tweeted about how it should be extended, and yet she wasn’t following it herself. “And it’s all very well blaming someone else – the lettings agent didn’t do this, or that she is the chancellor. She needs to be on top of her paperwork. She was aware of this legislation. I think there should be an investigation. “But the bottom line is that Keir Starmer said again and again, that lawbreakers shouldn’t be lawmakers. So if she’s broken the law, then he should apply his own rules to her.” Reeves admitted having rented out her home after moving into Downing Street following the election without the £945 licence required by Southwark after it was first disclosed by the Daily Mail. A spokesperson said the chancellor had used a letting agency to manage the process, and that while she should have been aware of the obligation to buy the licence, she had not been advised that she needed one. “She had not been made aware of the licensing requirement, but as soon as it was brought to her attention she took immediate action and has applied for the licence,” Reeves’s spokesperson said. The regulations of Southwark council stipulate that private landlords in certain designated areas of the south London borough need to obtain a “selective licence” before they can rent out their property. In an exchange of letters with Starmer released on Wednesday night, Reeves told the prime minister: “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.” Starmer replied by saying the matter was “regrettable” but said he believed Reeves was “treating this matter with the urgency and seriousness it deserves”. The PM’s response to Reeves said he had consulted his independent adviser on ministerial interests, Laurie Magnus, and added: “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 ministerial code makes clear that in certain circumstances, an apology is a sufficient resolution. It is important that all ministers are able to acknowledge where they consider themselves to have fallen below the standards expected of them. “I am satisfied that this matter can be drawn to a close following your apology.” The four-bedroom detached house had been advertised for rent at £3,200 a month last year, the Daily Mail and the BBC reported, and Reeves has noted rental income on her record of parliamentary interests since September 2024. However, the controversy could be a gift to Badenoch and other opposition politicians, who were already targeting Reeves before next month’s budget. Bandenoch spoke to reporters in London, where she and the shadow chancellor, Mel Stride, said Reeves should be sacked if she tried to raise taxes at the budget, as is being considered. Speaking for the government on Thursday morning’s broadcast round, Sarah Jones, the policing minister, said Reeves had made an understandable error. “She after the election, of course, moved into 11 Downing Street, as chancellors do. She has a family home in Southwark that she rented out through a letting agency. Now, Southwark council has what’s called a selective licensing scheme,” Jones said. “Some boroughs have them, some don’t … The chancellor wasn’t aware that she had to apply for this selective licence. As soon as she became aware, she rectified the situation. “She applied for that licence, and she told the prime minister, and she told the independent adviser on standards.”