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

Rachel Reeves has had a troublesome 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 put up on LinkedIn, which he requested followers to share, he wrote: “Again in 2009 Rt Hon Rachel Reeves labored 3 ranges under me. Simply details. She was a Complaints Help Supervisor at LBG/HBOS. Not an Economist. #factcheck.”

Actually it emerged that she had labored in a managerial position inside the financial institution’s grievance 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: “Practically received sacked as a consequence of an bills scandal the place the three senior managers have been all signing off every others bills.”

Reeves’s group vigorously denied the allegations.

Nonetheless, Labour’s imminent victory in final summer time’s normal election prompted a put up on a non-public Fb group for former HBOS staff that RAYNAE Information has seen asking if anybody remembered Reeves.

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

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

RAYNAE Information has been searching for the reality behind these options, chatting with greater than 20 folks, lots of whom have 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 grievance and dozens of pages of hooked up proof, which we’ve got seen, raised issues that the three managers have been utilizing the financial institution’s cash to “fund a way of life” 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 could not have concluded.

However the preliminary a part of the investigation, which was carried out by Inside Audit on the request of the financial institution’s threat division, discovered that the three managers appeared to have damaged the principles and the whistleblower’s allegations have been substantiated, in response to a senior supply with data of the investigation.

A spokesman for Reeves mentioned the Chancellor had no data 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 out to be an MP when she took up a job at Halifax Financial institution of Scotland in West Yorkshire in 2006.

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

She initially labored within the mortgage division, however in late 2007 moved to turn out to be 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 time of 2007 would pressure 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 concerning 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 Threat Management inside Buyer Relations”, raised issues about “spending on journey” and on company spending playing cards, together with Motivation playing cards which have been used to reward workers.

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 experiences”.

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 high performers and on taxi journey, to “focus consideration on specific features of journey which are pricey and maybe want extra consideration”.

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

The whistleblower’s grievance submitted by early 2009 was a six-page doc laying out a variety 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 chargeable for signing off the bills of the opposite two managers.

The report and hooked up receipts and different paperwork seen by RAYNAE Information present Reeves was accused of spending lots of of kilos on purses, fragrance, earrings and wine for colleagues, together with one present 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 RAYNAE 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 threat division and, at their request, was taken on by the Inside Audit division.

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

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

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

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

Nonetheless it doesn’t seem that this subsequent interview stage happened, 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 isn’t a proof of which we’re conscious that the financial institution’s inner 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 isn’t a suggestion any of the departures have been linked to the investigation or spending points and a spokesman for Reeves mentioned the Chancellor left the financial institution on good phrases.

Additionally they supplied a press release from the lawyer who supplied 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 in the course of the financial institution’s restructure”.

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

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

One concern was using 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 experiences – each upwards and downwards,” one former colleague of Reeves claimed.

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

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

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

There was steering about its use. In February 2008 a memo instructed HBOS staff on the right use of Motivation playing cards, which have been extensively used inside the Buyer Relations division.

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

Advised presents included “sweets, flowers, wine, vouchers or you can merely go surfing and ship a free e-card to say ‘Thanks’ for a job effectively completed”, the memo mentioned.

It warned that managers can be “chargeable for all transactions in your card and will probably 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 does not explicitly prohibit Christmas and birthday presents.

However 11 former staff informed us that they had 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 have been purchased with their very own cash.

Nonetheless, one ex-staff member, Jane Wayper, a former HR enterprise associate who was given permission to talk to us by Reeves’s group, claimed that “birthday presents and Christmas presents could possibly be bought utilizing Motivation playing cards” and “workers have 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 have been purchased utilizing a Motivation card, whereas others have been reimbursed via 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 response to the whistleblower’s report. The current was a joint present 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 have 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 grievance 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 response to inner financial institution steering we’ve got seen, these could possibly be purchased on bills offering they have been small presents of £25 or much less and so they weren’t purchased utilizing the Motivation card.

The £25 restrict was primarily based 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 concerning 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 along with her Motivation card.

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

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

A reminder titled “additional readability” about how you can 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 have been later investigated have been all among the many recipients of this e mail confirming the principles on Christmas presents.

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

It is 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 “objective 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 might value extra money and time.

A colleague chargeable 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 “pleased with the work she did at HBOS” and was not conscious of the claims about her bills till approached by the RAYNAE.

“She was not conscious of an investigation nor was she interviewed, and he or she didn’t face any disciplinary motion on this or some other issues. All bills have been submitted and signed off within the correct method,” 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 he or she was given a beneficial reference.”

Reeves’s group put ahead a number of former HBOS staff 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 associate, mentioned in a press release that she did not recognise the accusations towards 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 could possibly be bought utilizing Motivation playing cards”. However that is at odds with a doc seen by RAYNAE Information and the testimony of 11 sources we’ve got spoken to.

Lots of Reeves’ former HBOS colleagues have been nervous concerning the penalties of sharing confidential data with RAYNAE Information however consider it’s within the public curiosity for what occurred, and their issues concerning 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 title them.

A Downing Avenue 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 progress and the enhancements in dwelling requirements that the nation wants.”

The Quantity 10 official added that the chancellor had gone via 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 concerning 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 point out 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.

In case you have any data on tales you want to share with the RAYNAE Politics Investigations group, please get in contact at politicsinvestigations@bbc.co.uk