Chancellor Rachel Reeves was investigated over her expenses while working as an economist at Halifax Bank of Scotland before she became an MP, a three months probe by the BBC has found.
The Chancellor's online employment history was also found to be inaccurate for the second time in two months, forcing Reeves to disclose on her personal LinkedIn profile that she had left an earlier role at the Bank of England nine months earlier than thought.
It means that she spent just five and a half years at the Bank of England from September 2000 to December 2006, rather than the decade she has previously claimed.
Reeves's spokesman said she was not aware of the expenses investigation and that her claims had signed off in the proper way. She blamed "an administrative error by a member of the team" for the errors on her LinkedIn page.
Chancellor Rachel Reeves was investigated over her expenses while working as an economist at Halifax Bank of Scotland before she became an MP, a three months probe by the BBC has found
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However Tory leader Kemi Badenoch urged Reeves to come clean "not just about her CV but about the circumstances in which she left HBOS".
Prime Minister Sir Keir Starmer was forced to defend his Chancellor insisting she could be trusted. Asked whether it would be right to say the PM does not have any concerns about Reeves’ conduct, he said: “Correct.”
The BBC reported that Reeves and two other senior managers at HBOS spent hundreds of pounds on a company credit card called a "Motivation card" intended to purchase gifts to motivate other staff.
The BBC said a six page internal report into the spending and attached receipts and other documents found Reeves was accused of spending "hundreds of pounds on handbags, perfume, earrings and wine for colleagues", including one gift for her boss.
Concern was also expressed about her spending on taxis and on a Christmas party. The whistleblower believed the "spending to be excessive".
The BBC reported that an initial independent investigation found the three appeared to have broken the rules. It found no evidence that the bank's internal investigation was completed, nor that there was ever a concluding finding of any wrongdoing.
A spokesman for Reeves said: “She was not aware of an investigation nor was she interviewed, and she did not face any disciplinary action on this or any other matters. All expenses were submitted and signed off in the proper way."
Friends of Reeves said she did not "recollect the individual expense claims".
Starmer moved to defend his Chancellor today saying that she had dealt with any issues that arise. Asked if she could be trusted, the PM said: "Yes, the Chancellor is working with the whole of Cabinet to deliver the Plan for Change.”
On whether it would be right to say the PM does not have any concerns about Reeves’ conduct, he said: “Correct.”
Badenoch said: "The BBC's investigation raises serious questions for Rachel Reeves. Keir Starmer said 'restoring trust in politics is the great test of our era'.
"Until she comes clean - not just about her CV but about the circumstances in which she left HBOS, no one will take him seriously."
Labour’s Dame Siobhain McDonagh twice described the situation as an “expenses scandal” and said “we’ve got to be sure about what happened”.
“As far as I’m aware she absolutely denies that she was approached by anybody about the expenses scandal,” the MP for Mitcham and Morden told BBC Politics Live.
“I think there’s still questions to be asked about what is going on and we’ll see what happens.”
A spokesman for Lloyds Banking Group - which now owns HBOS - said: "We do not comment on current or former employees."
The Treasury pointed to a statement from Jayne Wayper, former HR Business Partner for HBOS, who told the BBC she was not aware of any investigation.
She said: “I do not recognise any of the accusations or claims that have been made against Rachel Reeves.
"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.
“Rachel travelled extensively in her role using the train and then taxis primarily to get to sites. She was also on a relocation package having moved to Leeds from London and was able to claim all travel expenses for travel to London.
“There was an extensive oversight of all expenses policies. Receipts were signed off by line managers, but they were also reviewed regularly by internal audit. That was standard practice."
