Nightmare for Rachel Reeves as Esther McVey predicts her fate

Rachel Reeves has "served her purpose" for Sir Keir Starmer and will be ousted after the Autumn Budget, according to a Conservative MP. Speaking on the Daily Expresso podcast, Esther McVey said she believes the Chancellor's rental licence scandal could be the final straw for her political career, coming in the wake of her "sheer incompetence" and "broken promises". Ms Reeves admitted to not obtaining a required "selective" rental licence for her South London home when she moved to 11 Downing Street last year, describing it as an "inadvertent mistake" for which she apologised this week.

While it may be unavoidable, the Chancellor's sacking wouldn't be good news for the Prime Minister either, Ms McVey said, who orchestrated a major Cabinet reshuffle just last month after Deputy PM Angela Rayner resigned over a similar housing tax row. Ms Reeves was one of the only ministers not given a new brief in the September shakeup, and has thus far been Mr Starmer's "human shield", Ms McVey suggested.

"She has proved to be a sort of human shield to Keir Starmer, but I think she will, after this Budget, have served her purpose and he might actually have to get rid of her," the Tory representative for Tatton said.

"And that is because, on top of her sheer incompetence, on top of her now breaking all of her promises, which she'll no doubt have to do, she's got this housing scandal."

Downing Street has insisted that Sir Keir has "full confidence" in Ms Reeves and that she would still deliver the November 26 Budget, where she is expected to make a series of tax rises and spending cuts, rumoured to include an income tax hike - which would signal a break with one of Labour's key campaign promises.

"If we dig deeper into this, it's not good for either [Reeves or Starmer]," Ms McVey continued. "She said she knew nothing about this 'selective licence', as it's called." However, the MP went on to claim, Ms Reeves "actually lobbied for the selective licence to be brought into Leeds City Council back in 2023."

She continued: "She should have checked herself whether she had one on her own property."

The Government has refused to confirm whether the Chancellor broke ministerial code by breaching the rules, but an unwillingness to take decisive action risks worsening public distrust, Ms McVey warned.

"Keir Starmer has said: 'Matter's closed, she's apologised to me, she's going to pay, we're not going to pursue it anymore, it's not necessary,'" she recounted. "He's had a word with the Independent Ethics Advisor, Sir Laurie Magnus, and he's saying now he's going to draw a line under the matter. Absolutely not.

"How dare they have one rule for them and one rule for everybody else? This was the Government, as you remember, that was going to be whiter than white."

Number 10 has since said that "new information" about the rental arrangements for Ms Reeves' family home came to light on Thursday afternoon, although the repercussions for her future in Government remain unclear.

"Following a review of emails sent and received by the Chancellor's husband, new information has come to light," a spokesperson said. "This information has been passed to the Prime Minister and his independent advisor."