An investigation into chancellor Rachel Reeves, who broke local housing rules when renting out her family home, is “not necessary”, the prime minister has said.
Prime Minister Keir Starmer gave his Reeves his backing after consulting his independent ethics adviser, Sir Laurie Magnus.
The PM described her “prompt action” to obtain a licence and apology as “sufficient”.
On Wednesday, Reeves admitted that she did not obtain the required “selective” rental licence for her south London home when she moved into No 11 Downing Street in 2024, after Labour won the election.
Southwark Council requires people renting out their properties in certain areas to get one of the licences in advance and not doing so can lead to a prosecution or a fine.
It is understood that the chancellor accepts she should have got the licence, but she relied on the advice of a letting agency, which did not tell her it was necessary.
An exchange of letters between the PM and Reeves revealed they had met to discuss the matter on Wednesday evening, after it came to light.
Reeves described the situation as “an inadvertent mistake” and said she has since applied for a licence.
She added: “I sincerely apologise for this error and I would be happy to answer any questions you may have.”
In his reply, Starmer said: “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 PM said it was “regrettable that the appropriate licence was not sought sooner” but said he believed the chancellor was “treating this matter with the urgency and seriousness it deserves”.
The Conservatives have called for Starmer to launch an investigation into the incident.
Kemi Badenoch wrote 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 news that Reeves failed to obtain the licence comes after several high-profile government figures have had to step down as a result of scandals.
Among these were Angela Rayner, the former deputy prime minister and housing secretary, who resigned following a row about her tax affairs.
Follow STV News on WhatsApp
Scan the QR code on your mobile device for all the latest news from around the country
