Labour’s Shadow Chancellor Rachel Reeves is facing a formal investigation by the Parliamentary Standards Commissioner over a possible breach of rules relating to the registration of financial interests—just hours before local elections are set to begin across England.
The inquiry, which was officially launched on Tuesday, centres on an alleged delay in updating the Register of Members’ Financial Interests, where MPs are required to declare within 28 days any financial or material interest that could reasonably be seen to influence their parliamentary work.
According to the standards watchdog’s website, the probe falls under Paragraph 5 of the MPs’ Code of Conduct, which states that members must “conscientiously fulfil” the House of Commons’ registration requirements.
The code mandates that any relevant financial interest or benefit must be reported within the required timeframe.
Timing of Probe a Blow to Labour Ahead of Key Elections
The announcement comes at a particularly sensitive time for the Labour Party, with voters heading to the polls for local elections on Thursday.
It presents an unwelcome distraction for Labour leader Sir Keir Starmer, who is seeking to maintain political momentum ahead of a potential general election later this year.
A spokesperson for Reeves said: “The Chancellor’s interests are fully declared and up to date.”
However, it is understood that the investigation relates to a late entry in Reeves’ parliamentary register of interests, despite the same detail being recorded on time in her ministerial register.
Controversies Over Gifts and Hospitality Continue to Linger
The probe follows a string of headlines about gifts and hospitality received by senior Labour figures.
Earlier this year, Reeves came under fire for accepting a VIP box seat to a Sabrina Carpenter concert, a decision that reignited criticism as she prepared to oversee a £5 billion reduction to the welfare budget.
Previously, Reeves also pledged to stop accepting free clothing from donors after a political storm dubbed “wardrobe-gate” erupted just ahead of the Labour Party’s annual conference.
The row intensified after revelations that Labour leader Keir Starmer had not initially declared designer clothing provided for his wife Victoria by Labour donor Lord Waheed Alli.
Alli, who has contributed over £500,000 to the party in the past two decades, also provided Starmer with luxury accommodation and items including multiple pairs of spectacles—prompting the media to label the affair “passes for glasses”.
Labour Faces Renewed Scrutiny Over Transparency
While ministers are held to a separate declaration standard from MPs, the apparent discrepancy between Reeves’ MP and ministerial registers has drawn attention to broader concerns over transparency within Labour’s top ranks.
Starmer’s own record of gift declarations has come under scrutiny, adding to the pressure on party leadership to tighten internal compliance.
With the timing of the investigation falling just before critical local elections, the issue threatens to overshadow Labour’s messaging and rekindle debates around the party’s relationship with high-value donors and perks.
