Chancellor Rachel Reeves has found herself at the centre of a controversy over her expense claims during her time working at Halifax Bank of Scotland (HBOS) prior to becoming an MP.
According to reports, Reeves and two other senior managers at HBOS were investigated over their use of a company credit card designed for gifts to motivate staff. A whistleblower compiled a report in 2009 alleging the spending, which included Christmas and birthday presents, was excessive.
The report claimed the three managers were using the bank’s money to “fund a lifestyle” with allegedly inappropriate spending on dinners, events, taxis and gifts, including for each other. Receipts reportedly showed Reeves spent hundreds of pounds on handbags, perfume, earrings and wine for colleagues, including a gift for her boss.
Concerns were also raised about Reeves’ spending on taxis and a Christmas party. An initial independent investigation found the three appeared to have broken the rules, the BBC reported.
A spokesman for Reeves said the Chancellor had no knowledge of the investigation, always complied with expense rules and left the bank on good terms. However, the revelations have prompted calls for Reeves to come clean about the circumstances surrounding her departure from HBOS, which had to be bailed out by taxpayers to the tune of £20.5 billion at the time.
Labour MP Siobhain McDonagh said there are “questions to be asked” about the expense “scandal”, while the TaxPayers’ Alliance called for Reeves to “come clean” about what happened during her time at the organisation.
The controversy has also reignited questions about Reeves’ CV, with the BBC alleging she exaggerated the amount of time she spent working at the Bank of England. Reeves’ team has acknowledged the original dates were inaccurate, blaming an administrative error.
Prime Minister Keir Starmer has expressed full faith in Reeves, saying she is focused on reviving the British economy. But the Chancellor faces a battle to restore trust and credibility as she seeks to steer the country through a cost-of-living crisis.