Rachel Reeves accused of ‘cavalier attitude’ to expenses during banking career

Rachel Reeves has been accused of having a “cavalier attitude” to expenses during her time in retail banking, forcing the chancellor and the prime minister to defend her conduct and insist there was no wrongdoing.

Keir Starmer said he had full confidence in Reeves and said she dealt with “any issues” that arose from her career in retail banking, after claims the chancellor was investigated for alleged misuse of expenses and made inaccuracies on her CV.

Reeves’s career history has been put under scrutiny again after a BBC investigation revealed her time working at the Bank of England was nine months shorter than she claimed and that her use of expenses while working at HBOS was subject to an internal investigation. No conclusion of wrongdoing appears to have been reached.

A whistleblower claimed Reeves and two other managers’ use of expenses was excessive, telling the BBC they had a “very cavalier attitude regarding the budget in the department”.

Reeves’s spokesperson said the chancellor had never been questioned about her expenses while she was at the bank and believed that all the items she put through on expenses were within the company rules.

Documents seen by the BBC contained evidence about the three managers’ use of expenses, with spending on gifts and taxis, including for each other, and Reeves buying birthday presents for colleagues with the bank’s money. The whistleblower’s report claimed she spent £152 on a handbag and perfume as a present for her boss using the bank’s money.

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

“In my role, I would have been made aware of any investigation which concluded there was a case to answer. I would have been required to organise and oversee a disciplinary process. This did not happen. Under the Financial Conduct Authority’s rules, any such accusations would have to have been properly investigated.

“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.”

David Sorensen, the managing partner at Morrish Solicitors, who acted on behalf of Reeves when she left HBOS in 2009, added: “My clear understanding at the time was that my client, who was in a senior role, left on good terms when HBOS plc was acquired in 2009, as evidenced by the payments made to her, her retention of her company car and other benefits for a six-month period, and a favourable reference.

“Absolutely no allegations of wrongdoing or misconduct were mentioned by the HBOS HR team during this process.”

On Reeves’s LinkedIn profile, it previously said she had worked at the Bank of England for just over six years, from September 2000 to December 2006. However, the end date was updated after Reeves was approached by the BBC, to March 2006.

On leaving her job in March 2006, Reeves started working for HBOS in West Yorkshire. The change means Reeves has confirmed that she worked at the Bank of England for five and a half years, despite previously saying she had been there for “the best part of a decade”.

A spokesperson for Reeves acknowledged the dates on her LinkedIn profile were inaccurate and said it was due to an administrative error by the team. A source close to the chancellor claimed she had never even logged into her LinkedIn account.

The prime minister was asked if he felt comfortable that “she exaggerated her relevant experience”. Starmer said: “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.”

Downing Street said the prime minister believed Reeves had integrity and he had no concerns about her conduct when asked if she disclosed that there had been an investigation into her expenses.

The prime minister’s spokesperson said: “Obviously the chancellor, like every cabinet member, has been through that process. The process is governed by the independent adviser. Obviously I can’t get into detail.”

Asked whether it would be right to say the prime minister did not have any concerns whatsoever about Reeves’s conduct, he said: “Correct.”