Rachel Reeves 'under investigation over expenses from her time at a bank'

key takeaways

Rachel Reeves was reportedly investigated over her expenses during her time as an economist at Halifax Bank of Scotland (HBOS) before becoming an MP.

The Chancellor, along with two other senior managers, allegedly charged hundreds of pounds to a company credit card intended for staff motivation gifts.

However, a whistleblower compiled a report in early 2009, claiming the spending—covering Christmas and birthday presents—was excessive.

According to the BBC, the report accused the three managers of using bank funds to “support a lifestyle,” with allegedly inappropriate spending on dinners, events, taxis, and gifts, including presents for one another.

Receipts indicated that Ms. Reeves spent hundreds of pounds on handbags, perfume, earrings, and wine for colleagues, including a gift for her boss. Concerns were also raised about her expenses for taxis and a Christmas party.

An initial independent investigation concluded that the three appeared to have violated company rules.

A spokesperson for Ms. Reeves stated that she was unaware of the investigation, had always adhered to expenses policies, and left the bank on good terms.

On Thursday, critics from across the political spectrum argued that questions remained, particularly as HBOS had recently received a £20.5 billion taxpayer bailout at the time.

‘Questions to be asked’

Siobhain McDonagh, the Labour MP, told BBC Politics Live that the Chancellor had questions to answer.

“We’ve got to be sure about what happened with the expenses scandal,” she said. “As far as I’m aware she absolutely denies that she was approached by anybody about the expenses scandal.

“So I think there’s still questions to be asked about what is going on and we’ll see what happens.”

A Labour backbencher told The Telegraph: “HBOS had to be bailed out by the taxpayer, and at the time there were people on very low incomes paying tax to support it.

“To hear that there are question marks about her expenses at this time raise questions that need to be answered. It’s time she comes clean.

“Was she taking money off the poorest in society and living a high life on expenses?”

‘Reeves needs to come clean’

John O’Connell, chief executive of the TaxPayers’ Alliance, expressed concern over the matter, stating: “Taxpayers will be deeply troubled by the possibility that the person responsible for managing the nation’s finances may have a questionable record regarding company credit card use.

"Reeves must be transparent about what took place during her time at the organisation.”

Additionally, the BBC reported that Rachel Reeves’s CV overstated the duration of her employment at the Bank of England.

Her LinkedIn profile stated that she worked at the Bank from September 2000 to December 2006. However, the BBC found evidence that she had actually left by March 2006 to begin working at HBOS.

Ms. Reeves has previously spoken about having "spent the best part of a decade as an economist at the Bank of England," but the BBC’s findings indicate that her tenure was closer to five and a half years.

Focused on reviving economy

Sir Keir Starmer said that Ms Reeves was focused on reviving the British economy when he was grilled about the row.

Asked if he was comfortable that Ms Reeves had appeared to exaggerate her experience, the Prime Minister said: “Rachel Reeves has dealt with any issues that arise.”

Downing Street said: “The Prime Minister is working hand in hand with the Chancellor and has full faith in the Chancellor for the job that she has done in beginning to turn the economy round after 14 years of stagnation.”

Asked whether it was correct to say that Sir Keir had no concerns whatsoever about her conduct, the Prime Minister’s official spokesman replied: “Correct.”

Kemi Badenoch, the Tory leader, said on X: “The BBC’s investigation raises serious questions for Rachel Reeves.

“Keir Starmer said ‘restoring trust in politics is the great test of our era’. Until she comes clean – not just about her CV but about the circumstances in which she left HBOS – no one will take him seriously.”

Richard Tice, the Reform UK MP, said: “The reality is she has clearly been economical at best with the reality of her own CV and I think what we are learning is if she can’t get her own CV right, can she really run the accounts department of the country, ie the Treasury?”

Mr Tice said that under Labour it was “one rule for everybody else and a different rule for them”.

Chancellor ‘left bank on good terms’

A spokeswoman for Ms Reeves said: “Rachel is proud of the work she did at HBOS and the teams that she led. It is 16 years since she left the bank and the first time she was made aware of these claims was when approached by journalists.

“She was not aware of an investigation nor was she interviewed, and she did not face any disciplinary action on this or any other matters. All expenses were submitted and signed off in the proper way.

“Several former colleagues from her time at the bank, including HBOS’s former HR business partner, have corroborated this account. Rachel left HBOS in 2009 on good terms.”

Jayne Wayper, a former HR business partner at HBOS, said: “I do not recognise any of the accusations or claims that have been made against Rachel Reeves.

“Under the company’s then expenses policy, birthday gifts and Christmas presents could be purchased using motivation cards. Indeed, staff were encouraged to do so for their teams.

“Rachel travelled extensively in her role using the train and then taxis primarily to get to sites. She was also on a relocation package having moved to Leeds from London and was able to claim all travel expenses for travel to London.

“I cannot speak for the motivations behind those who have been making these claims about Rachel Reeves. However, I do not recognise them and understand she left the bank on good terms.”

Source: The Telegraph