Tensions within the Labour Party have erupted into the open as allies of Greater Manchester Mayor Andy Burnham denounce Prime Minister Sir Keir Starmer for what they call blatant hypocrisy in his handling of a property rental licensing scandal involving Chancellor Rachel Reeves. This internal rift exposes the growing disconnect and factional infighting threatening to undermine the party’s credibility, especially as Ms Reeves prepares for her second Budget scheduled for November 26.
At the heart of this controversy is the revelation that Ms Reeves failed to obtain a mandatory licence from Southwark Council for a rental property in Dulwich, southeast London, costing her tenants at least £38,400 in unlicensed accommodation. Initially, Ms Reeves claimed ignorance of the licensing requirement, yet subsequent disclosures showed her husband had been warned by the letting agency before her statement. The estate agent has now admitted it failed to apply for the licence, confirming the oversight was not accidental. Ms Reeves has subsequently issued an apology, brushing the scandal off as an “unintentional error,” but the damage is done.
Downing Street’s response has been predictably dismissive, claiming that this situation with Ms Reeves is fundamentally different from the case of former Deputy Prime Minister Angela Rayner, who resigned earlier this year over stamp duty underpayment. Independent ethics adviser Sir Laurie Magnus ruled that Rayner’s misconduct, while a breach of the ministerial code, was committed in good faith. By contrast, in Reeves’ case, Magnus deemed the mistake "unfortunate but inadvertent," stressing that there’s no evidence of bad faith or a breach of the code requiring her resignation. Despite this, the Prime Minister’s office has offered mere lip service, and it’s clear that internal party rivals see this as yet another example of Starmer’s inconsistent standards and selective discipline.
Labour’s own ranks are sharply divided, with critics accusing the leadership of double standards. Close allies of the faction that champions regional decentralization, supported by Burnham, argue that Reeves has been treated far more leniently than Rayner, suggesting “the rules only apply when it suits those in power.” Labour MP Graham Stringer cast suspicion on the timing of the Budget, claiming that political calculus driven by upcoming fiscal policies likely influenced the decision to overlook Reeves’ breaches, whereas under different circumstances, consequences would have been inevitable. Left-wing critics echo these sentiments, emphasizing that both women unintentionally broke regulations and suffered financial penalties—yet Rayner resigned while Reeves faces no action whatsoever, highlighting a disturbing bias within the party’s leadership.
The Prime Minister’s spokesperson attempted to justify the different treatments based on the independent adviser's rulings, touting Reeves’ record on interest rate cuts and international trade deals as evidence of her importance in tackling the nation’s economic woes. But such spin rings hollow given the mounting questions about the integrity of a government that appears more interested in protecting its own than upholding standards of accountability.
Andy Burnham, the regional powerhouse and potential leadership challenger, has remained silent publicly—though whispers about his ambitions persist. His lack of overt criticism belies an underlying fracture in Labour’s ranks, exposing a party increasingly divided over ethical discretion and control. This episode serves as a stark reminder that Sir Keir’s leadership is struggling to maintain cohesion, with internal rivals openly questioning his authority and double standards.
As Labour grapples with these internal divisions, the broader concerns about their ability to govern honestly and fairly only deepen. The party’s credibility is on the line, and their current track record suggests they are more concerned with protecting their own than addressing the real issues facing working people. If this is the state of their internal discipline, it raises serious doubts about their capacity to lead the country with integrity in the next election.
Source: Noah Wire Services