Tories call for Rachel Reeves to resign over housing law

Tories call for Rachel Reeves to resign over housing law
Credit: Reuters/Jack Taylor

UK (Parliament Politics Magazine) – Conservatives urge Prime Minister Keir Starmer to sack Chancellor Rachel Reeves after she broke housing laws by renting her family home without a licence.

As reported by The Telegraph, Tories call on Sir Keir Starmer to remove Rachel Reeves for breaking housing regulations.

The Chancellor is facing calls to quit over violating housing rules while renting her family home without a proper licence.

Ms Reeves admitted to the Prime Minister that she failed to obtain the required “selective” licence for her East Dulwich home after moving into Number 11 Downing Street.

In certain areas, the local council has said that private landlords must obtain a “selective” licence before renting out their properties.

What did the Tory spokesman say about Rachel Reeves and Keir Starmer?

A Tory spokesman stated,

“Rachel Reeves has broken the law and broken the ministerial code, but Keir Starmer is too weak to sack her. While the Chancellor is planning tax hikes for millions of families across the country at the Budget, it’s one rule for the Chancellor and another for everyone else.”

He added,

“Keir Starmer pledged to restore integrity to politics, but now he’s laughing in the face of the British public. He should grow a backbone and sack the Chancellor now. This is not over.”

How did Kemi Badenoch criticise Rachel Reeves’ record on taxes and jobs?

Tory leader Kemi Badenoch stated,

“We’re here to talk about Rachel Reeves. Apparently one in 10 people think Rachel Reeves is doing a good job. Who are these people? I haven’t met them.”

She said,

“She promised not to put a tax on working people. Apparently farmers aren’t working people, apparently anyone who has a job isn’t a working person because they put up the jobs tax and look what’s happened. Unemployment has risen every single month since Labour came into office. It is what Labour does. Ducks quack, cows moo, Labour puts up taxes.”

Referring to Ms Reeves breaching housing law, the Tory leader stated,

“Just this morning we’ve seen the news Rachel Reeves apparently has broken a law, just like Angela Rayner before her and Louise Haigh before her. All we see is the Labour Cabinet making mistakes, breaking laws.”

She said,

“If the Chancellor can’t even get on top of her own paperwork, how’s she going to get on top of the country’s paperwork?”

She warned that Ms Reeves should quit if she raises taxes in the Budget.

Ms Badenoch said,

“Our message is simple. If she puts up tax, give Reeves the axe. That last Budget was a disaster and after that she said she wasn’t coming back for more. And what have we been hearing for summer? Rises in property taxes, increases in income taxes, they wanna tax our homes, they wanna tax our pensioners, they wanna tax our savings. Tax, tax, tax, tax, tax. Enough is enough. If she puts up tax, give Reeves the axe.”

She promoted the party’s “golden economic rule” of deficit reduction alongside investment.

The Tory leader added,

“What we need right now is growth, Labour has seen a flat-lining in growth … That’s terrible, growth is what’s going to solve our problems. We are backing growth. We are backing tax cuts that will create growth.”

Ms Badenoch concluded,

“That’s my message to Rachel today, I know you’ve got a lot of problems now with the new issues with being a landlord and messing up your lettings. But no one is interested in your problems, we need you to solve our problems. If she puts up tax, give Reeves the axe.”

What did Sarah Jones say about Rachel Reeves’ resignation?

When asked about Rachel Reeves’ resignation, Policing Minister Sarah Jones responded,

“No, she shouldn’t. She after the election of course moved into 11 Downing Street as chancellors do. She has a family home in Southwark that she rented out through a letting agency.”

She stated,

“Now Southwark Council has what’s called a selective licensing scheme… The Chancellor wasn’t aware that she had to apply for this selective licence. As soon as she became aware she rectified the situation, she applied for that licence and she told the Prime Minister and she told the independent adviser on standards.”

Ms Jones said,

“I think the PM in his letter to the Chancellor set out that he’d consulted the ethics adviser who had basically said that the mistake had been made, the apology had been given, the mistake had been rectified and that was the end of the matter.”

She added,

“I think people will judge of course the Chancellor on her record and if you look at the economy we have turned round what was very much a failing economy to the fastest growing one in the G7.” 

What did Rachel Reeves say about her housing licence mistake?

The Chancellor informed the Government’s independent ethics adviser of her mistake in a letter to the Prime Minister.

A spokesman for Rachel Reeves said she was unaware of the licensing requirement and called it an inadvertent mistake.

In her letter to the Prime Minister, the Chancellor stated,

This was an inadvertent mistake. As soon as it was brought to my attention, we took immediate action and have applied for the licence.”

She added,

“I sincerely apologise for this error and I would be happy to answer any questions you may have.”

What did Keir Starmer say in reply to Rachel Reeves’ letter?

In his reply, Sir Keir Starmer said he had discussed the matter with his independent adviser, Sir Laurie, saying,

“He has advised me that in relation to your inadvertent failure to secure the appropriate licence for your rental property – and in light of your prompt action to rectify the position, including your apology – further investigation is not necessary.”

The prime minister added,

“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 Labour leader said it was regrettable that the proper licence was not obtained sooner, but praised the Chancellor for addressing the matter with urgency and seriousness.

Which Labour figure had to resign over unpaid stamp duty?

Former Deputy Prime Minister and Housing Secretary, Angela Rayner,  resigned in September 2025 after an investigation found she had breached the Ministerial Code.

She admitted to underpaying stamp duty by approximately £40,000 on a £800,000 flat she purchased in Hove, England. The underpayment was due to a failure to seek specific tax advice regarding her complex family finances.

What changes does the Renters’ Rights Act 2025 bring for tenants?

  • Tenants can stay indefinitely with two months’ notice to leave.
  • Landlords can only evict for specific legal reasons.
  • Must maintain decent homes; authorities can enforce standards.
  • Lifetime deposits, no rental bidding wars, and mandatory landlord/property registration.