The Prime Minister has cleared Rachel Reeves over her "inadvertent" failure to obtain a rental licence for her south London family home.
The Chancellor previously admitted to mistakenly breaching Southwark Council’s housing rules by not securing a "selective" licence for the property when she began renting it out for £3,200-a-month following her move into No 11 Downing Street.
She initially said that she was unaware of the requirement, but emails between her husband and the letting agency published on Thursday showed he had been informed about the rules for landlords in the area.
But emails revealed estate agents Harvey & Wheeler took the blame for the "oversight" in not applying for a licence on her behalf, despite having agreed to do so.
Here’s what we know about the latest scandal to hit the Labour Government:
What is a selective rental licence?
Some councils require landlords to obtain a selective rental licence for certain privately rented properties in designated areas.
The schemes are designed to improve housing standards and tackle problems such as anti-social behaviour by ensuring landlords manage properties responsibly.
Under section 95 of the Housing Act 2004, it can be a criminal offence for a landlord to fail to get the right licence, unless they can show that they had a "reasonable excuse".
Landlords who fail to get a licence after a warning can face fines.
In Southwark, where the Chancellor’s family home is, selective licensing is in place in areas including Old Kent Road, Camberwell Green, Dulwich Hill, London Bridge, Peckham Rye and South Bermondsey.
Will the Chancellor receive a fine?
Southwark Council has refused to comment on the Chancellor’s case. The town hall said it takes enforcement action against landlords who do not apply for a license within 21 days of receiving a warning.
Downing Street insisted Ms Reeves has now applied for one.
Last year, Southwark Council fined a letting agent and a landlord, £1,128 and £2,256 for renting out a property without acquiring the correct licence.
What do the emails released by No 10 say?
On Wednesday evening Ms Reeves apologised to the Prime Minister after it emerged she and her husband had failed to obtain a licence needed to rent out their London home.
Sir Keir said no further investigation into the incident was needed as the breach was "inadvertent".
But there was pressure on Downing Street to release more details about the case.
On Thursday afternoon, Ms Reeves's husband provided the PM and his ethics adviser, Sir Laurie Magnus, with "new information" he had found in his email account.
The exchanges between himself and the couple's letting agent, Harvey & Wheeler, showed the agency had not obtained the necessary licence despite offering to do so on the Reeves’ behalf.
Harvey & Wheeler owner Gareth Martin said in a statement on Thursday night that "our previous property manager offered to apply for a licence on these clients' behalf", but they "suddenly resigned" before the tenancy began.
"Unfortunately, the lack of application was not picked up by us as we do not normally apply for licences on behalf of our clients; the onus is on them to apply," he said.
"We have apologised to the owners for this oversight."
But Conservative leader Kemi Badenoch said the estate agent’s admission did not exonerate Ms Reeves.
"It's still your duty to make sure that something has been followed,” she told LBC.
“They said that they didn't chase it up, but she was made aware, the family were made aware, that they had to follow those regulations.”
Did Ms Reeves break the ministerial code?
Breaking the high standards that ministers are held to is a grave offence and usually results in a resignation. Angela Rayner was forced to quit her roles as Deputy PM and Housing Secretary after breaking the ministerial code when she failed to pay enough stamp duty when purchasing a new flat.
A Downing Street spokesman refused to say directly whether Ms Reeves had broken these rules over her licensing breach.
"The ministerial code makes clear that in certain circumstances and in consultation with the independent adviser, an apology is sufficient resolution," the spokesman added.
Sir Laurie told the PM that after seeing the emails, he still believed Ms Reeves made an "unfortunate but inadvertent error".
But political rivals have a different opinion.
A Tory Party spokesman said: "It's one rule for the Chancellor and another for everyone else. 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."
