PM won't discipline chancellor despite 'regrettable' email oversight in rental licence row

Sir Keir Starmer has said Rachel Reeves will face no further action over her "inadvertent failure" to obtain a rental licence for her south London home.

The chancellor had come under pressure to explain whether she had broken housing law by not getting the licence for the property when she moved into Number 11 Downing Street last year. Conservative leader Kemi Badenoch called for her to resign or be sacked.

But in a letter published on Thursday night, the prime minister said correspondence shared by Ms Reeves shows her husband had been assured by the couple's estate agents "that they would apply for a licence on his behalf". Sir Keir said it was "regrettable" he had not been made aware of the correspondence sooner, with an initial letter the chancellor sent him on Wednesday having suggested she was "not aware that a licence was necessary".

A second letter from Ms Reeves on Thursday informed the prime minister that she had found correspondence between the letting agent and her husband about applying for the licence on their behalf. Sir Keir said in his reply: "I understand that the relevant emails were only unearthed by your husband this morning, and that you have updated me as soon as possible." The PM labelled the incident "an inadvertent failure" and said he sees "no need" for further action.

Lettings agency apologises Number 10 also published advice given to the PM by his independent ethics adviser, Sir Laurie Magnus, saying he'd found "no evidence of bad faith". The owner of lettings agency Harvey and Wheeler has released an apology to the chancellor.

Gareth Martin confirmed a member of his staff said they would apply for the licence - but this was never done, as the person "suddenly resigned" prior to the start of the tenancy. He said: "We deeply regret the issue caused to our clients as they would have been under the impression that a licence had been applied for." Read more:Badenoch hacking 'not the same' as Reeves 'law break'Sam Coates: Rental row raises questions that cut deeper Ms Reeves had immediately faced calls to leave her post after a report in the Daily Mail, which saw her admit to mistakenly breaching local council housing rules by failing to secure the licence.

The newspaper reported Ms Reeves had failed to pay for a "selective" licence when renting out her family home in Dulwich, south London, which she has left while living in Downing Street as chancellor. The Housing Act 2004 gives councils the power to make landlords accredit themselves in certain areas.

Ms Reeves has apologised over the incident, and for the delay in clarifying what advice her husband had received from the estate agent. "I am sorry about this matter and accept full responsibility for it," she told the PM.

Number 10 has consistently backed Ms Reeves ahead of her delivering the budget on 26 November..