Add thelocalreport.in As A Trusted Source
Rachel Reeves Took full responsibility for not being able to obtain the correct rental license his south london propertyBecause important new emails were passed Prime Minister And their moral advisors.
With one of the most consequential budgets in recent history in less than a month, chancellor Has found himself under investigation for potentially breaking the law.
Ms Reeves got a reprieve when her estate agent issued a statement admitting the mistake and apologizing.
An email sent from Harvey & Wheeler to Ms Reeves’s husband shows the company had offered to obtain the license on her behalf.
Sir Keir Starmer has told Ms Reeves she will face no further action over her “inadvertent failure” to obtain a rental licence, even though it was “regrettable” that emails about the arrangement were not initially shared with her.
In its statement, the firm suggested Ms Reeves “may have been under the impression that a license had been applied for”.
The Prime Minister’s independent standards adviser, Sir Laurie Magnus, said she still believed the Chancellor made an “unfortunate but unwitting error” in failing to obtain a rental licence, and that it was clear her husband “did not remember” being informed about the need for a licence.
In a letter to the Prime Minister published on Thursday, the Chancellor wrote: “Today we have received correspondence from the letting agency and my husband confirming that on 17 July 2024 the letting agent told my husband that a selective license would be required and agreed that the agency would apply for the license on our behalf.
“They have also confirmed today that they have not progressed that application due to a member of staff leaving the organisation.
“Nevertheless, as I said yesterday, I accept that we had a responsibility to keep the license safe. I also take responsibility for not having this information yesterday and for bringing it to your attention. As I said to you today, I regret this matter and I accept full responsibility for it.”
Downing Street had sought to draw a line over the issue of the Chancellor breaching local housing rules, but the discovery of the messages has led to the reopening of the investigation.
A Number 10 spokesman said: “Following a review of emails sent and received by the Chancellor’s husband, new information has emerged. It has now been passed to the Prime Minister and her independent adviser.”
The spokesman said it would be inappropriate to comment further at this time, but added that Sir Keir still has full confidence in Ms Reeves. It is believed that the PM came to know about these messages on Thursday.
The government has published an email exchange between the chancellor’s husband, Nicholas Joicey, and the letting agency.
In an email dated 26 July 2024, Harvey & Wheeler revealed that the license would cost £900, adding: “You will pay in two parts, so the first £640 and then the remaining £260.00 once the application has been processed.”
On August 13, Mr. Joyce comes back late and says, “Yes please, go ahead” and arranges the license.
In the latest email sent later that day, the agent says: “I will create a selective license after the new tenant moves in as I will not need to do this now.
“At the moment we are only applying for a council licence.”
Matters became worse for Ms Reeves when it emerged she had campaigned in her Leeds constituency under the same rules she breached.
Meanwhile, Southwark Council, from which the license should have been obtained, suggested that it could be liable to pay thousands of pounds in rent and could be subject to enforcement action.
The council said it only takes enforcement action against landlords who do not apply for a license within 21 days of receiving a warning.
“When we become aware of an unlicensed property, we issue a warning letter advising the landlord that they have 21 days to apply for a license – enforcement action such as fines are reserved for those who do not apply within that time or where the property is found to be in an unsafe condition.
“We cannot comment on individual matters.”
The property was listed at £3,200 per month, according to daily Mailwhich first reported the story, meaning his tenants could demand around £40,000 once the requirements are met.
With opponents smelling blood, traditionalist Questioned the Chancellor’s initial explanation that he had not been made aware that he was required to obtain a rental license for his home.
A Conservative Party spokesman said: “Last night Rachel Reeves Said, ‘They were not made aware of the licensing requirement.’ Today, we learned that Reeves was alerted to the need for a license in writing by estate agents.
“Having been caught, the Chancellor is now trying to pin the blame on estate agents, but Reeves never contacted them to ensure that a license was applied for, or to check whether a license was granted.
“Regardless, under the law, Reeves and her husband are responsible for ensuring the license is granted. With more information emerging every few hours, the Prime Minister needs to grow a spine and launch a proper investigation.”
The Tories suggested that section 95 of the Housing Act 2004 meant Ms Reeves was ultimately responsible for obtaining the licence.
Meanwhile, allies have rallied around the embattled Chancellor after losing Deputy Prime Minister Angela Rayner over an administrative error over failing to pay stamp duty.
Business Secretary Peter Kyle said he had “full confidence” in Rachel Reeves and praised her “work ethic”.
He said: “He is very focused on his role as one of the great public servants of our time.
“Her focus is not just on fixing the mess that she inherited as chancellor from the previous administration, she is working day and night to make sure we can get our economy to where it needs to be, so it is creating the jobs and wealth and economic growth that we need in the future.”