Keir Starmer and his independent ethics adviser are reviewing new details regarding Treasury chief Rachel Reeves' home rental arrangement, a spokesperson said on Thursday, emphasizing that the prime minister maintains full confidence in her.
The spokesperson told reporters "new information has come to light" after a review of emails sent and received by Reeves' husband, less than a day after she wrote to Starmer to apologize for an "inadvertent mistake" of not applying for a licence to rent out her house in London.
"This has now been passed to the prime minister and his independent adviser," the spokesperson said. "It would be inappropriate to comment further."
Reeves and her family moved out of their south London home and into a government-owned apartment next to the prime minister's Downing Street residence after the Labour Party was elected in July 2024.
The Daily Mail newspaper reported late Wednesday that Reeves did not have a rental license, as required by the local authority in the area. Landlords who don't have a license can be prosecuted or fined.
The spokesperson said Starmer had full confidence in his finance minister and confirmed that the budget would still take place on Nov. 26. The spokesperson nodded when asked whether Reeves would present it.
British government bond prices fell slightly after the spokesperson's comments were published.
Gilt futures edged down by around 15 ticks from a session high after the news. The value of sterling was little changed against the dollar.
Bond prices fell much more sharply in July when Reeves was visibly upset and cried in parliament, alarming investors who were briefly left uncertain about her grip on the job and what that meant for her plans to fix Britain's public finances.
Earlier on Thursday, Starmer said that, under the ministerial code, an apology was a sufficient resolution to the issue, rejecting calls for an investigation into Reeves.
Reeves said she has since applied for the licence.
Lawmakers from the opposition Conservative Party have called for a full investigation, with Conservative Party finance policy chief Mel Stride saying her position is untenable.
Reeves is under huge pressure before her November budget, with expectations she will be forced to break election pledges and hike some taxes after warnings official forecasts could show the economy is in a worse state than once thought.
Since winning an election 15 months ago, Starmer has already lost some high profile ministers, most notably Angela Rayner, former deputy prime minister. She resigned in September after a report found she had breached the ministerial code by not paying the correct taxes when she purchased a property.
