Sir Keir Starmer Rules Out Investigation Into Chancellor’s Rental Licence Breach
Prime Minister Keir Starmer has confirmed that no formal investigation will be launched into Chancellor Rachel Reeves’ failure to secure the required housing licence for her South London property.
The Labour leader said the issue had been addressed “appropriately” after consultation with his independent ethics adviser, Sir Laurie Magnus.
The Chancellor admitted she did not obtain the mandatory “selective” licence for her family home in Southwark when she moved into No 11 Downing Street following Labour’s election victory.
In her letter to the Prime Minister, Ms Reeves wrote: “This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.”
“I sincerely apologise for this error and I would be happy to answer any questions you may have.”
Sir Keir responded, stating: “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. … I am satisfied that this matter can be drawn to a close following your apology.”
He acknowledged it was “regrettable that the appropriate licence was not sought sooner” but said he was satisfied the Chancellor was “treating this matter with the urgency and seriousness it deserves.”
The contestation arose after Ms Reeves rented out her South London home without carrying the picky licence needed by Southwark Council.
Certain corridors of the city require landlords to register parcels before they can be rented out, with failure to do so risking execution or forfeitures.
KEIR STARMER REFUSES TO TAKE ACTION AGAINST RACHEL REEVES FOR BREAKING THE LAW
“I’m Satisfied” are the words he gave in his statement
Rachel has apologised for renting out her house without a license to do so
Taking two tier policing to a whole new level
WOW you can get away… https://t.co/c6ooT6OAqN pic.twitter.com/kwCh5s5aIU— Basil the Great (@Basil_TGMD) October 29, 2025
The Chancellor said she and her family were ignorant of the demand and had reckoned on advice from a letting agent, which failed to flag the rule. Once advised, she took the way to amend the situation and applied for the licence immediately.
The Prime Minister’s decision to close the matter has not silenced his critics.
Conservative leader Kemi Badenoch urged Sir Keir to “launch a full investigation”, reminding him that he had 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,” she added.
Daisy Cooper, the Liberal Democrat deputy leader, also weighed in: “The Chancellor is meant to be delivering growth but the only thing she appears to be growing is the Government’s list of scandals.
Just weeks before the Budget, this risks seriously undermining confidence in this Government and its ability to focus on the urgent tasks at hand.”
The timing of the controversy couldn’t be worse for Labour, with the Chancellor preparing to deliver a Budget expected to include some of the toughest fiscal choices in recent years.
While the issue may feel executive, casing licence rules carries legal weight. Landlords who rent parcels without the proper authorisation can face execution or fiscal penalties. For an elderly minister, indeed, a minor breach draws violent scrutiny.
Sir Keir’s decision to close the matter with a reason is seen by some as a realistic attempt to move on, while others argue it risks appearing lenient and undermining Labour’s communication on integrity in government.
With pressure mounting and the Budget just weeks down, Ms Reeves faces the task of recovering public trust while steering the frugality through turbulent times.
For Sir Keir Starmer, the incident serves as an early test of leadership, balancing responsibility with fidelity to his top platoon. Whether this decision restores calm or energises further debate remains to be seen.
Prime Minister Keir Starmer has ruled out any investigation into Rachel Reeves’s case licence lapse, accepting her reason and immediate action to fix the mistake.
Yet, as political opponents circle, questions loiter about thickness, clerical norms, and the government’s grip on its own ethical law.
