Rachel Reeves and her bills earlier than she grew to become an MP

Rachel Reeves has had a tough begin to her ministerial profession.

In addition to Labour’s new chancellor taking over the challenges of the UK economic system, she has confronted difficult questions on her previous.

They started with scrutiny of her on-line CV late final 12 months.

On the skilled networking web site LinkedIn, the Chancellor of the Exchequer claimed to have labored as an economist at Halifax Financial institution of Scotland (HBOS) instantly earlier than turning into an MP.

A kind of who challenged it was a retired former colleague, Kev Gillett.

In a public publish on LinkedIn, which he requested followers to share, he wrote: “Again in 2009 Rt Hon Rachel Reeves labored 3 ranges under me. Simply information. She was a Complaints Assist Supervisor at LBG/HBOS. Not an Economist. #factcheck.”

In reality it emerged that she had labored in a managerial function inside the financial institution’s criticism dealing with division and her LinkedIn profile was up to date to take away the declare.

Gillett additionally made one other declare about Reeves’s time on the financial institution from 2006 to 2009, writing that she: “Almost acquired sacked because of an bills scandal the place the three senior managers had been all signing off every others bills.”

Reeves’s staff vigorously denied the allegations.

Nevertheless, Labour’s imminent victory in final summer season’s basic election prompted a publish on a non-public Fb group for former HBOS workers that NUZTO Information has seen asking if anybody remembered Reeves.

One former worker replied: “the bills dept actually do!”

A number of others made reference to Reeves being investigated over her bills spending.

NUZTO Information has been looking for the reality behind these recommendations, talking to greater than 20 folks, a lot of whom had been former colleagues, and getting access to receipts, emails and different paperwork.

We have now learnt that there was an bills investigation into Reeves and two different senior managers.

An in depth six-page whistleblowing criticism and dozens of pages of hooked up proof, which we’ve got seen, raised issues that the three managers had been utilizing the financial institution’s cash to “fund a life-style” with allegedly inappropriate spending on dinners, occasions, taxis and presents, together with for one another.

We have now not been in a position to set up what the ultimate end result of the investigation was. Certainly it might not have concluded.

However the preliminary a part of the investigation, which was performed by Inside Audit on the request of the financial institution’s danger division, discovered that the three managers appeared to have damaged the principles and the whistleblower’s allegations had been substantiated, in accordance with a senior supply with information of the investigation.

A spokesman for Reeves mentioned the Chancellor had no information of the investigation, all the time complied with bills guidelines and left the financial institution on good phrases.

Reeves was in her 20s and attempting to turn into an MP when she took up a job at Halifax Financial institution of Scotland in West Yorkshire in 2006.

The function required her to maneuver north from London, the place she had unsuccessfully stood as Labour’s parliamentary candidate in what had been a protected Conservative seat.

She initially labored within the mortgage division, however in late 2007 moved to turn into Head of Enterprise Planning within the Buyer Relations division, which dealt with complaints.

Her profession at HBOS coincided with what would show to be a tumultuous time for the financial institution.

The worldwide monetary disaster which started in late summer season of 2007 would power the sector to embark on a large programme of job cuts and value financial savings.

In September 2008, HBOS itself got here near collapse, requiring a government-brokered takeover by Lloyds and an emergency bailout which might complete £20.5bn of taxpayers’ cash.

It was shortly after this near-collapse, by early 2009, {that a} whistleblower from her division raised issues in regards to the spending habits of Reeves and two different managers, one in every of whom was Reeves’s boss.

Earlier than this, in late 2008, a memo was circulated to Reeves and others which known as for tighter value management within the division.

Written by a planning and technique supervisor, the doc, “Monetary Danger Management inside Buyer Relations”, raised issues about “spending on journey” and on company spending playing cards, together with Motivation playing cards which had been used to reward employees.

It laid out proposals to “enhance value controls” which included month-to-month discussions with Reeves and one other of the senior managers who the whistleblower claimed had mis-used bills to “give visibility of claims, invoices, Thanks card use and studies”.

Individually, Reeves was emailed in mid-December 2008 about proposals for a presentation setting out how a lot had been spent on Motivation playing cards, recognising prime performers and on taxi journey, to “focus consideration on specific facets of journey which might be pricey and maybe want extra consideration”.

Reeves replied to say that she was undecided a “enormous evaluation” was wanted and she or he wished to see the papers earlier than they went any additional.

The whistleblower’s criticism submitted by early 2009 was a six-page doc laying out a spread of issues about an alleged spending tradition within the Buyer Relations division.

It targeted on the behaviour of three people: Reeves, Reeves’s boss, and one other senior supervisor within the division. Reeves’s boss, who we aren’t naming, was accountable for signing off the bills of the opposite two managers.

The report and hooked up receipts and different paperwork seen by NUZTO Information present Reeves was accused of spending a whole bunch of kilos on purses, fragrance, earrings and wine for colleagues, together with one reward for her boss. Concern was additionally expressed about her spending on taxis and on a Christmas occasion. The whistleblower believed the spending to be extreme.

After a name to the whistleblowing hotline, the whistleblower was instructed at hand in a bodily copy of their report and supporting proof, two sources mentioned.

A separate supply, who contacted NUZTO Information themselves within the wake of an article on the furore round Reeves’s CV final 12 months, was additionally conscious that somebody had blown the whistle on Reeves and one other colleague.

The report was handed to the financial institution’s danger division and, at their request, was taken on by the Inside Audit division.

A supply who labored in danger on the financial institution instructed us: “Given the character of the allegations – claiming bills for stuff you would not usually declare bills for – and the relative seniority of the people, the matter was referred for investigation by a staff outdoors of that division.”

The Inside Audit division, which had entry to bills claims and sign-offs, then assessed the criticism and supporting paperwork, in accordance with two sources.

It discovered that there was proof of obvious wrongdoing by the three senior managers together with Reeves, a senior supply with direct information of the investigation instructed NUZTO Information.

Inside Audit accomplished its involvement within the investigation and handed its findings to an investigative a part of the Danger division in round April 2009. The traditional course of would then have been for the managers to be interviewed in regards to the allegations. There would then be an evaluation of potential disciplinary motion if needed.

Nevertheless it doesn’t seem that this subsequent interview stage occurred, or that the investigation ever reached a proper conclusion. Reeves insisted she was by no means interviewed, as did her boss, who mentioned she was “not conscious of an bills probe and my departure was not associated to any alleged investigation”. The opposite senior supervisor declined to remark.

There is no such thing as a proof of which we’re conscious that the financial institution’s inside investigation was accomplished, or that there was ever a concluding discovering of any wrongdoing.

Reeves left the financial institution in Could 2009, as did her boss. The opposite senior supervisor was on sick go away in Could and by no means returned to work on the financial institution.

There is no such thing as a suggestion any of the departures had been linked to the investigation or spending points and a spokesman for Reeves mentioned the Chancellor left the financial institution on good phrases.

In addition they offered a press release from the lawyer who offered authorized recommendation on the compromise settlement – a voluntary authorized doc ending an worker’s employment – she signed on her departure.

He mentioned it was a “standard-style settlement adopted by the corporate when a mutually agreed exit was made through the financial institution’s restructure”.

“Completely no allegations of wrongdoing or misconduct had been talked about by the HBOS HR staff throughout this course of,” he mentioned.

What lay behind the whistleblower’s criticism and the grumbles of different colleagues was unhappiness referring to a number of totally different areas of spending.

One concern was the usage of financial institution fee playing cards to pay for Christmas and birthday presents.

“A tradition developed amongst senior managers in Buyer Relations the place presents got freely to direct studies – each upwards and downwards,” one former colleague of Reeves claimed.

“[They had] a really cavalier perspective concerning the finances within the division.”

Reeves and the opposite senior managers had each a company bank card and one other fee card generally known as a ‘Motivation’ or ‘Thanks’ card.

The Motivation card was meant for use to reward high-performers for good work.

There was steerage about its use. In February 2008 a memo instructed HBOS workers on the right use of Motivation playing cards, which had been broadly used inside the Buyer Relations division.

It said that the playing cards had been for use to “reward/acknowledge colleagues who’ve gone the additional mile”.

Steered presents included “goodies, flowers, wine, vouchers or you would merely go online and ship a free e-card to say ‘Thanks’ for a job properly accomplished”, the memo mentioned.

It warned that managers could be “accountable for all transactions in your card and will likely be held accountable if spending in your assertion can’t be verified”.

Spending on this space was scrutinised as a result of the corporate incurred tax on it.

The memo would not explicitly prohibit Christmas and birthday presents.

However 11 former workers instructed us they’d by no means heard of colleagues being purchased birthday presents with the financial institution’s cash, and believed that doing so was in breach of the principles. A number of mentioned any birthday presents had been purchased with their very own cash.

Nevertheless, one ex-staff member, Jane Wayper, a former HR enterprise companion who was given permission to talk to us by Reeves’s staff, claimed that “birthday presents and Christmas presents might be bought utilizing Motivation playing cards” and “employees had been inspired to take action for his or her groups”.

Reeves purchased birthday presents for colleagues with HBOS’s cash all through her time in Buyer Relations, receipts present, with purchases together with wine and cosmetics. Some had been purchased utilizing a Motivation card, whereas others had been reimbursed by means of an bills declare.

She additionally spent £152 on a purse and fragrance as a gift for her boss utilizing the financial institution’s cash, in accordance with the whistleblower’s report. The current was a joint reward from Reeves and one of many different managers who was later investigated alongside her.

And he or she purchased earrings as a gift for her PA, which she claimed again on bills.

Her PA, Linda Barrowclough, mentioned she had obtained Christmas and birthday presents from Reeves however had assumed they had been “private presents [and] they’d have come out of her personal pocket”.

Reeves additionally used her Motivation card to spend greater than £400 on a leaving meal for a colleague, which the whistleblowing criticism claimed was not a permitted use.

The state of affairs round Christmas presents, which Reeves additionally purchased for her PA and others, was extra difficult.

That is as a result of, in accordance with inside financial institution steerage we’ve got seen, these might be purchased on bills offering they had been small presents of £25 or much less and so they weren’t purchased utilizing the Motivation card.

The £25 restrict was based mostly on tax recommendation as something extra substantial would appeal to tax.

It appeared to her colleagues that Reeves had damaged these guidelines.

However there does seem to have been confusion in regards to the coverage. We have now additionally seen emails exhibiting that Reeves was inspired by her boss to purchase costlier Christmas presents, and to pay for them together with her Motivation card.

In late October 2008, Reeves’s supervisor wrote that “after checking with different departments, it seems like the usual observe of shopping for Christmas presents for direct studies utilizing motivation financial institution will proceed this 12 months”, emails seen by the NUZTO present.

She urged spending £50 to £75 per individual on the presents.

A reminder titled “additional readability” about methods to purchase Christmas presents and the way a lot to spend was circulated by one other HBOS worker in early December, emails present.

Reeves and the opposite managers who had been later investigated had been all among the many recipients of this e mail confirming the principles on Christmas presents.

Whereas seasonal presents, resembling at Christmas, had been allowed, the managers had been explicitly instructed they might not use Motivation playing cards for these purchases. The price of these “trivial” presents was additionally not allowed to exceed £25, consistent with HMRC steerage, the e-mail mentioned.

It’s because rewards for efficiency at work are taxable whereas seasonal presents resembling these given for Christmas, offering they aren’t too pricey, are exempt.

Replying to the e-mail, Reeves wrote that she did not perceive why the “aim posts are shifting” and mentioned she had already ordered and paid for her presents utilizing “Motivation Financial institution/Thanks, and I don’t intend to cancel them,” claiming this may value extra money and time.

A colleague accountable for finance acknowledged that the message on paying for Christmas presents hadn’t all the time been clear however mentioned: “I do not consider that the goalposts are being moved.”

Receipts present that presents purchased by Reeves at Christmas 2008 included a £49 purse for her PA, whereas she herself obtained £55 value of wine from her boss.

There was a widespread perception on the financial institution that there had been an bills investigation into Reeves and two colleagues.

However Reeves has mentioned that she has no recollection of being investigated or having questions raised over her bills.

A spokesman for Reeves mentioned she was “happy with the work she did at HBOS” and was not conscious of the claims about her bills till approached by the NUZTO.

“She was not conscious of an investigation nor was she interviewed, and she or he didn’t face any disciplinary motion on this or another issues. All bills had been submitted and signed off within the correct means,” she mentioned.

The spokesman additionally mentioned Reeves left in 2009 “on good phrases and obtained a severance fee, together with her full discover pay and bonus”.

“HBOS allowed her to maintain an organization automobile for six months after she left and she or he was given a beneficial reference.”

Reeves’s staff put ahead a number of formal HBOS workers for interview who they mentioned corroborated her account that she had not been investigated.

One mentioned she hadn’t seen proof of senior managers misusing bills and the financial institution had controls to stop it however she left in February 2008, greater than a 12 months earlier than Reeves departed. She additionally mentioned that she had by no means heard of giving birthday and Christmas presents at HBOS’s expense as being a part of the financial institution’s insurance policies.

One other, Jane Wayper, the previous HR enterprise companion, mentioned in a press release that she did not recognise the accusations in opposition to Reeves and “would have been conscious of any investigation which concluded there was a case to reply” as she would have been concerned within the disciplinary course of.

She mentioned there was “intensive oversight of all bills insurance policies” and claimed that “birthday presents and Christmas presents might be bought utilizing Motivation playing cards”. However that is at odds with a doc seen by NUZTO Information and the testimony of 11 sources we’ve got spoken to.

Lots of Reeves’ former HBOS colleagues had been apprehensive in regards to the penalties of sharing confidential info with NUZTO Information however consider it’s within the public curiosity for what occurred, and their issues in regards to the now-Chancellor’s spending of the financial institution’s cash, to be reported.

However, given their issues about talking out publicly, we’ve got agreed to not identify them.

A Downing Road spokesman mentioned the prime minister had no issues about Reeves’s conduct.

Requested whether or not Sir Keir Starmer nonetheless thought the Chancellor had integrity after she up to date her profession historical past on LinkedIn, his official spokesman mentioned: “Sure. The Chancellor and the prime minister are working hand in hand to ship on the priorities, the plan for change, and to ship the upper development and the enhancements in residing requirements that the nation wants.”

The Quantity 10 official added that the chancellor had gone by means of the declaration course of, which all members of Cupboard undergo, when requested if she disclosed that there had been an investigation into her bills earlier than she was an MP.

Conservative chief Kemi Badenoch mentioned the investigation raised questions for the chancellor.

She posted on X: “Keir Starmer mentioned ‘restoring belief in politics is the good take a look at of our period’. Till she [Reeves] comes clear – not nearly her CV however in regards to the circumstances by which she left HBOS, nobody will take him significantly.”

The investigation at HBOS was not the final time Reeves would face scrutiny over her bills.

In 2015, it emerged that she was amongst 19 MPs who had had their official bank cards suspended by the parliamentary bills watchdog after failing to indicate their spending was legitimate.

Reeves owed greater than £4,000 in spending on the time when her card was blocked. She subsequently cleared her debt.

When you have any info on tales you want to share with the NUZTO Politics Investigations staff, please get in contact at politicsinvestigations@bbc.co.uk