Rachel Reeves: No concerns raised with me about my expenses

Chancellor Rachel Reeves has said no concerns were raised with her about her expenses during her time working at Halifax Bank of Scotland.

A BBC News investigation found that while at HBOS, Reeves was subject to a detailed whistleblowing complaint which raised concerns about her use of company money.

Reeves said she “submitted and had her expenses signed off in the proper way”.

However, the BBC has seen documents which show concerns about spending habits in the department Reeves worked in were raised with her.

A spokesman for the chancellor previously said she had no knowledge of the investigation, always complied with expenses rules and left the bank on good terms.

Asked what her understanding of the investigation was, Reeves told the BBC: “No one ever raised any concerns about my expenses when I worked for Halifax Bank of Scotland.

“I submitted and had my expenses signed off in the proper way, as you would expect.

“And no issues were ever raised during my time at Halifax Bank of Scotland.”

Pressed over why some of her former colleagues were aware of an investigation, the chancellor said: “I don’t know what they are saying and of course none of them have gone on the record.

“But I was never questioned, never asked to pay back any expenses.”

Reeves said she was “really proud of the work that I did before I became an MP” but added: “In the end, people are going to judge me on the job that I’m doing now as chancellor of the exchequer to grow the economy and put more money in the pockets of working people.”

A Facebook group for former HBOS employees included several joking about Reeves’s expenses spending and the fact she was investigated.

In the late 2000s before entering politics, Reeves worked at HBOS as a senior manager.

The BBC has learnt that during her time at the bank concerns were raised about Reeves, and two other managers, using the bank’s money to “fund a lifestyle”.

The concerns raised about Reeves’s spending included a £400 leaving meal for a colleague, a £49 handbag for her PA and £152 spent on another bag, along with some perfume as a present for her boss in a joint gift with another manager.

One of the other employees investigated was Reeves’s manager and the person who signed off her expenses.

The bank’s internal audit department carried out the initial investigation and found there was evidence expenses rules appeared to have been broken, a senior source said.

The BBC has not been able to establish what the final outcome of the investigation was, or whether it reached a conclusion.

In late 2008, a memo was circulated to Reeves and others calling for tighter cost controls.

It specifically raised concerns about “spending on travel” and on corporate spending cards, including Motivation cards which were used to reward staff.

The proposals it laid out for improving cost controls included monthly discussions with Reeves and another manager to look at “claims, invoices, Thanks card use and reports”. That other manager was also one of those subsequently investigated over their use of expenses.

Separately, Reeves was emailed in mid-December 2008 by an HBOS employee who suggested they should give a presentation to raise awareness of how much was being spent on taxis and on Motivation cards.

Reeves replied to say that she was not sure a “huge analysis” was needed and she wanted to see the papers before they went any further.