Rachel Reeves ‘investigated over expenses’ in HBOS banking job
Rachel Reeves was investigated over her use of expenses while working in a banking job before becoming an MP.
The Chancellor, alongside two colleagues, was subject to an internal probe into expenses claims, while she was a senior manager at Halifax Bank of Scotland (HBOS) in the late 2000s, the BBC has revealed.
Reeves is also facing questions over inaccuracies in her online CV, which saw her Linkedin profile exaggerate the length of time she worked at the Bank of England by several months – which has since been updated.
Prime Minister Sir Keir Starmer believes Reeves has integrity and has no concerns about her conduct, Downing Street has said.
It follows reports emerging in November which saw Reeves’ claim she spent a decade at the Bank of England contested – despite her Linkedin stating it was a six-year period.
But at the time No10 defended the Chancellor’s record of being “straight with the public” over the nation’s finances.
The BBC reported HBOS had opened an investigation into the spending culture of the department at the bank where Reeves worked, after a whistleblower complained she and two senior colleagues’ use of expenses was excessive, according to the broadcaster.
A six-page complaint was submitted in 2009, the BBC reported, but a spokesperson for Reeves said 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”.
They added: “All expenses were submitted and signed off in the proper way. Several former colleagues from her time at the bank, including HBOS’ former HR business partner, have corroborated this account. Rachel left HBOS in 2009 on good terms.”
The BBC reported having sight of receipts showing Reeves bought presents for colleagues including wine and cosmetics, and spent £152 on a handbag and perfume as a joint present for her boss, according to the whistleblower’s report seen by the broadcaster.
She bought earrings as a gift for her PA, which she claimed back on expenses, the BBC said, and the whistleblower raised concern over spending on taxis and a £400 leaving meal.
The broadcaster reported there were various spending policies at the bank, including managers having use of a so-called Motivation or Thanks card, and being encouraged to “reward/acknowledge colleagues who have gone the extra mile”.
However, the BBC reported differing views over whether birthday and Christmas gifts were allowed to be purchased via the Motivation cards at the bank at the time.
Asked about the reporting, Sir Keir told journalists: “Rachel Reeves has dealt with any issues that arise.
“She delivered a really important budget for the country that balanced the books, gave us stability, that is beginning to see those interest rates come down, those mortgages coming down as a result; beginning to see some of the growth we need.
“She is determined that we go further with that. So she can deal with the issues that arise out of this report many years ago.
“What I am concerned with – what she is concerned with, we get up every day to do – is to make sure that the economy in our country, which was badly damaged under the last government, is revived and we have growth, and that is felt in the pockets of working people across the country (so) they feel better off.”
A lawyer for the Chancellor, who is MP for Leeds West and Pudsey, has also said she was not subject to “allegations of wrongdoing or misconduct” during her career in retail banking.
David Sorensen, the lawyer who represented her as she left the bank, said her exit was “a standard-style agreement adopted by the company when a mutually agreed exit was made during the bank’s restructure”.
He added: “Absolutely no allegations of wrongdoing or misconduct were mentioned by the HBOS HR team during this process.”
Downing Street said the Chancellor went through a ministerial declaration process like other members of Cabinet when she joined the government, but the Prime Minister’s official spokesperson would not get into the details of what was disclosed.
Responding to the update to her Linkedin profile to reflect the changed date of her work with HBOS, a spokesperson for the Chancellor said: “As Rachel said on Good Morning Britain a couple of weeks ago when she was asked, she worked as an economist at the Bank of England between 2000 and 2006, including over a year at the British Embassy in Washington working in the economics section, and then she worked at HBOS from 2006 to 2009.
“She’s proud of the jobs she did and the experience she gained before becoming a Member of Parliament.”
Conservative leader Kemi Badenoch said: “Keir Starmer said ‘restoring trust in politics is the great test of our era’. Until (the Chancellor) comes clean – not just about her CV but about the circumstances in which she left HBOS, no one will take him seriously.”