By Sarah Young and Elizabeth Piper
LONDON (Reuters) -Keir Starmer and his independent ethics adviser are assessing new information over finance minister Rachel Reeves’ home rental agreement, the prime minister’s spokesperson said on Thursday, adding the British leader had 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 apologise 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.”
The spokesperson said Starmer had full confidence in his finance minister and confirmed that the budget would still take place on November 26. The spokesperson nodded when asked whether Reeves would present it.
REEVES IS UNDER HUGE PRESSURE AHEAD OF THE BUDGET
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 former deputy prime minister Angela Rayner. 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.
(Reporting by Sarah Young and Elizabeth Piper, additional reporting by Muvija M; Editing by Kate Holton)
