Sir Keir Starmer has brushed off Conservative demands to sack chancellor Rachel Reeves after she admitted renting out her London home without the proper licence.

In a letter to the prime minister, Reeves said she “sincerely apologised” for failing to obtain the selective licence required to rent out her Southwark property, calling it an “inadvertent error.”

Starmer, after consulting his independent ethics adviser Sir Laurie Magnus, said he was satisfied the matter was resolved and confirmed no investigation will be launched.

“I am happy this matter can be drawn to a close,” Starmer wrote, adding that the public “expects the highest standards.”

Opposition parties, however, are refusing to let the issue rest. The Conservatives have accused Reeves of breaking the law and the ministerial code, claiming Starmer is “too weak” to act.

A Conservative spokesperson said: “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.”

Daisy Cooper, deputy leader of the Liberal Democrats, added: “The chancellor is meant to be delivering growth, but the only thing she appears to be growing is the government’s list of scandals.”

The row follows revelations – first reported by the Daily Mail – that Reeves rented out her family home for £3,200 a month after moving into Downing Street last summer. The property lies in an area where Southwark Council requires landlords to hold a selective licence.

Reeves insists she relied on her letting agency, which they say failed to warn her that the licence was required. Southwark Council’s own website makes the stakes clear:

“You can be prosecuted or fined if you’re a landlord or managing agent for a property that needs a licence and do not get one.”

Both Reeves and the agency could, in theory, face an unlimited fine if the council pursues the case.

Is Rachel Reeves or her letting agency at fault for unlicensed rental property?