Rachel Reeves could be forced to pay back £38,000 over her breach of local council housing rules. The Chancellor admitted she failed to obtain a rental licence for her family home in London when she moved into 11 Downing Street and apologised for the error.
Southwark Council requires people renting out their properties in certain areas to get a licence in advance, and not doing so can lead to a prosecution or a fine. Ms Reeves could face a rent repayment order meaning she would have to repay rent collected during the period that the home was unlicensed for up to a year.
At £3,200 per month, the total amount that the Chancellor could have to hand back is £38,400.
It comes as Sir Keir Starmer is attempting to draw a line under the row surrounding Ms Reeves just weeks before her Budget.
In a letter to the Prime Minister yesterday, the Chancellor admitted she did not obtain a “selective” rental licence required and apologised for the “inadvertent error”.
In his response, Sir Keir said he was happy the “matter can be drawn to a close” after consulting his ethics adviser, who decided against launching a probe.
But opposition critics have argued the Government has questions to answer and demanded an investigation.
Conservative leader Kemi Badenoch said Ms Reeves needs to “be on top of her paperwork” following the mistake and pointed to the Chancellor’s previous public support of councils using selective licences.
Ms Reeves, who is also MP for Leeds West and Pudsey, posted on social media earlier this month welcoming Leeds City Council’s decision to expand its use of the scheme.
Mrs Badenoch said: “The more I hear about the story, the more questions there are to answer. This is a 2004 statute that was brought in by Labour.
“She has tweeted about how it should be extended, and yet she wasn’t following it herself.”
The Tory leader added: “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.”
Southwark Council has been contacted for comment.
