Tories Demand Probe into Rachel Reeves' Secret Meetings with City Firms

Conservative lawmakers have called for an investigation into former Chancellor Rachel Reeves, citing her recent secret meetings with financial firms. The Tories are urging the Whitehall sleaze watchdog to examine these encounters amid claims that Reeves might resign from Parliament to capitalize on her experience.

Sources indicate that Reeves and her former spin doctor, Ben Nunn, met with two City companies in the two weeks preceding the recent Budget. These discussions reportedly involved the political advice the pair could offer, with chief executives at the meetings having met Reeves multiple times during her tenure as Chancellor. The meetings also touched upon Nunn's newly launched political advisory firm, Arlington Road Consultants.

The emergence of these meetings coincides with speculation in Westminster that Reeves, the Member of Parliament for Leeds West, may soon follow the precedent set by former Prime Minister Sir Keir Starmer and step down from her Commons seat.

However, strict government regulations govern the post-office employment of former ministers. These rules are designed to prevent any perception that individuals might be influenced by the prospect of future employment while still in office. Until July, when she was dismissed by the new Prime Minister Andy Burnham, Nunn served as her senior advisor at the Treasury.

Concerns have been raised that their combined expertise could be highly valuable to private companies, particularly in the lead-up to a significant fiscal event like the Budget. Tory chairman Kevin Hollinrake has written to Sir Laurie Magnus, the Independent Adviser on Ministerial Standards, stating that the rules clearly prohibit former ministers from using or disclosing privileged information gained in office for others' benefit. This includes sensitive contacts.

Nunn, who previously advised Sir Keir Starmer as Opposition Leader, is also bound by similar 'Business Appointment Rules' regarding the disclosure of information to businesses. Both he and Reeves are subject to a two-year ban on lobbying the government.

Hollinrake has urged Reeves to adhere to the requirement for former ministers to seek advice from the Independent Adviser before taking up any new private work for two years after leaving office. He commented that if Reeves met City firms with her former advisor to solicit business shortly before a Budget she helped prepare, it would represent a "scandalous breach" of established rules. He emphasized that these rules are in place to prevent the misuse of privileged information and the perception thereof. Hollinrake called on Reeves to be transparent about her activities, suggesting that a failure to do so would reinforce a perception of unequal application of rules.

Nunn's new consultancy is named after a group associated with internal Labour party maneuvers. He is the sole director of this company, which critics suggest may allow the former Chancellor to approach City firms discreetly. The Budget overseen by Reeves and Nunn last year was criticized by some as a "fiasco" due to leaks and confusion preceding its announcement. This situation led to the Budget being dubbed the 'hokey cokey Budget' after significant tax and spending changes were initially leaked but later modified or withdrawn. Her successor, John Healey, has reportedly adopted a more cautious approach this year, downplaying speculation surrounding the upcoming fiscal statement.

Reeves was approached for comment on the meetings, but Nunn declined to comment.