Why Southwark Council MUST prosecute Chancellor Rachel Reeves

Another Labour minister is in hot water over ‘misunderstanding’ the rules, and Two Tier thinks landlords will let this latest mishap slide?

Surely, when the Chancellor of the Exchequer, Rachel Reeves, breaks housing law, every landlord will sit up and take note.

Reeves has admitted she rented out her Dulwich family home without a selective licence.

Thankfully, the good people at Labour-run Southwark Council have avoided getting into a pickle and say she can apply now and all is good.

But it’s not though, is it? It shows how difficult life as a landlord can be.

And this is in the same week that the abysmal Renters’ Rights Act became law with draconian rules for landlords in England.

£3,200 a month in rent

The story is that Reeves has referred herself to the government’s ethics watchdog after the Daily Mail revealed she didn’t have a selective licence.

It’s being rented out for £3,200 a month (nice work, eh, Rach?) when she moved into Number 11 Downing Street with her family.

The issue is not trivial.

Renting without a required licence in Southwark is a criminal offence under the Housing Act 2004.

If any ordinary landlord had done the same thing, the penalty could be severe: a civil fine of up to £30,000 or an unlimited fine if prosecuted.

Indeed, last year, a local landlord and letting agency were ordered by Southwark Council to pay more than £3,000 for a similar offence.

Labour Councillor Natasha Ennin, Southwark’s cabinet member for community safety, said: “This case demonstrates our commitment to holding landlords and letting agents accountable when they fail to meet their legal obligations.

“Licensing ensures that rented properties in Southwark are safe and well-maintained for our residents. We will continue to take action against those who put tenants at risk.”

Well, we will see how true those words are.

Who was responsible?

Reeves now says that emails show that her letting agent would get the licence.

That’s a charmless way to throw an agent under the bus, and few landlords would ever expect that excuse to hold water.

Every landlord knows that ignorance is no defence.

The selective licensing system was created to ensure homes are safe and properly managed.

The delight at Reeves’ misfortune is that she recently campaigned for a scheme in her own Leeds constituency.

For her to breach those very rules is staggering hypocrisy.

Obligation to follow law

Then we have the Ministerial Code which makes clear that ministers have ‘an overarching duty to comply with the law’.

This is the line that has led to the downfall of the likes of our Ange Rayner and, by her own admission, Reeves has failed to do so.

If her renting out a property without a relevant licence means no censure, then the Code is worthless.

So, if the council is truly committed to equality under the law, it must treat the Chancellor no differently.

That means either prosecuting Reeves under the Housing Act 2004 or issuing the maximum civil penalty – now that would be a new financial black hole, eh Rach?

Anything less would make a mockery of enforcement and undermine faith in the licensing system itself.

Reeves has apologised

Fair play to the Conservatives for grabbing this opportunity but the political response so far has been muted.

It’s always the same when it’s one of their own getting pilloried, isn’t it?

Reeves has apologised to Two Tier and referred herself to the ethics adviser.

Well, that’s all right then.

Smarmer says he has accepted her apology and considers ‘the matter closed’.

He said this after consultation with his independent ethics adviser, which means that advisor must go too.

Yet this situation cannot simply be brushed aside, even if we are weeks out from the Budget.

What did Reeves do?

For those Labour and Reeves supporters asking: ‘What is she guilty of? Not knowing something that you think she should have known?’

The answer is this: She broke the law on being a landlord – you know, the thing that Labour says is a bad thing, and being a Labour MP is no excuse.

Southwark Council must prosecute her for breaking the law and Starmer should sack her.

And she should go onto London’s rogue landlord register – how sweet would that be, eh Sadiq?

Every landlord subjected to licensing knows how unforgiving local authorities can be when licences are missed, even by mistake.

Paperwork errors have cost small landlords thousands.

Beyond the personal scandal, the episode exposes the wider dysfunction of housing regulation.

Ministers have spent years tightening landlord obligations without fully understanding the complexity of property law.

Angela Rayner’s earlier controversy over property tax and Reeves’ breach of licensing rules show how easily even senior politicians can fall foul of the system they helped to create.

Not about politics

But this case is not about party politics; it is about credibility.

If a Chancellor can break housing law and keep her job, what moral authority remains to lecture landlords on compliance?

Put simply, politicians cannot demand integrity from everyone else while they are breaking laws they expect everyone else to follow.

Southwark Council has an opportunity to prove that the law still applies equally.

The outrageous penalties exist for a reason: to deter negligence and ensure accountability.

Whether Reeves faces a civil fine of £30,000 or an unlimited court penalty, anything less would set a dangerous precedent.

Landlords are watching

To allow a cabinet minister to escape meaningful sanction would shatter confidence in the fairness of the system.

This is the truth of the matter: Rachel Reeves broke housing law. She has admitted doing so.

The Ministerial Code says she must obey it, and Southwark Council must now do its job.

The country has had enough of its politicians – mainly Labour, naturally – conveniently forgetting to follow the rules then apologising and getting away with it.

They need to be treated exactly as the electorate would and, in this case, Reeves must be fined.

As Two Tier himself used to say: “It’s one rule for them and another for everyone else.”

Until next time,

The Landlord Crusader