Rachel Reeves has been under scrutiny this week for first her CV and now her alleged use of expenses in a previous job.
Sir Keir Starmer has given his full backing to the chancellor, stating he has "no concerns whatsoever" about her conduct.
"I can't speak to her time prior to the government,” a statement read. "The PM works hand in hand and has full faith in the chancellor."
The BBC has now reported that Halifax Bank of Scotland (HBoS) has opened an investigation into the spending culture of the department at the bank where Ms Reeves worked between 2006 and 2009.
Ms Reeves, MP for Leeds West since 2010, is “not aware of an investigation”, according to her spokesman, who added that she has also not been interviewed.
A cabinet minister has now turned on the BBC over its reporting of an alleged “inquiry” into her spending.
Science secretary Peter Kyle told BBC Radio 4’s Today programme: “Unfortunately, the reporting has been totally inaccurate.”
The BBC has, in turn, defended its investigation.
Despite apparently being in hot water, Ms Reeves has been assured she will be Sir Keir’s chancellor for the whole parliament – until at least 2029.
The news came as the pound lost further ground against the dollar and the cost of long-term government borrowing hit a new high in January.
Here is what Ms Reeves is accused of.
What has Rachel Reeves been accused of?
Enhancing her LinkedIn
A BBC investigation this week suggested that Ms Reeves’s online CV exaggerated the length of time she worked at the Bank of England.
Her LinkedIn was supposedly modified to state she worked at the bank from September 2000 to December 2006.
However, BBC News has established she had left by March 2006 when she began working for HBoS in West Yorkshire.
Ms Reeves’s team told the BBC that the LinkedIn account showed incorrect information and that it had been stated without the chancellor’s knowledge.
A spokespersonfor the Government said: “The chancellor and the prime minister are working hand in hand to deliver on the priorities, the plan for change, and to deliver the higher growth and the improvements in living standards that the country needs."
Expenses while working for HBOS
The BBC also reported that Ms Reeves was the subject of an HBoS investigation into the spending culture of the department at the bank where she worked between 2006 and 2009.
A whistle-blower allegedly complained she and two senior colleagues’ use of expenses was excessive.
The broadcaster said the report and attached receipts and other documents seen by BBC News show Ms Reeves was accused of spending hundreds of pounds.
She is said to have splashed out on handbags, perfume, earrings and wine for colleagues, including one gift for her boss. Concern was also reportedly expressed about her spending on taxis and on a Christmas party.
Ms Reeves’ team have denied any wrongdoing and has said she is not aware of any probe.
“All expenses were submitted and signed off in the proper way,” a statement added.
“Several former colleagues from her time at the bank, including HBoS’s former HR business partner, have corroborated this account.
“Rachel left HBOS in 2009 on good terms.”
Science secretary Peter Kyle told BBC Radio 4’s Today programme: “Unfortunately, the reporting has been totally inaccurate, and we heard yesterday that the person who was actually head of HR at that bank at that time says it’s untrue [and] said that she never, ever received a file on Rachel Reeves.”
