The Rachel Reeves expenses row escalated on Friday as a Cabinet minister turned on the BBC over its reporting of an alleged “inquiry” into her spending.
Science Secretary Peter Kyle claimed the BBC’s reporting that Ms Reeves was subject to an internal investigation into expenses while working at a retail bank was “totally inaccurate”.
But BBC presenter Nick Robinson rejected allegations made against the Corporation.
The broadcaster reported Halifax Bank of Scotland (HBOS) had opened an investigation into the spending culture of the department at the bank where Ms Reeves worked between 2006 and 2009.
A whistleblower 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 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.
But 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, said that she never, ever received a file on Rachel Reeves.”
The minister was told that HBOS did not say there was no investigation, but that one had not been completed before the HR manager or Ms Reeves had left the bank.
Mr Kyle replied: “And she says that before she left the bank, there was no investigation that passed her desk. And she’s also said if there was one, it would have passed her desk.
“I didn’t see any of that reporting included in the story I read yesterday evening on the BBC website.”
Mr Robinson responded: “You will have to read again, I can read the sentence again if you like. It’s all in there.”
But Mr Kyle said: “Last night it wasn’t and I’m glad it is now.”
As the claims against Ms Reeves have grown, senior London Labour MP Dame Siobhain McDonagh has backed further inquiries into them while stressing she believes the Chancellor is an honest politician.
A lawyer for the Chancellor, who is MP for Leeds West and Pudsey, has also said she was not subject to “allegations of wrongdoing or misconduct” during her career in retail banking.
Ms Reeves has updated her job history on professional networking site LinkedIn to reflect she worked at Halifax Bank of Scotland (HBOS) for longer than she had previously said.
The Chancellor’s page had previously suggested her stint at the Bank of England, which she has previously referenced to reinforce her credentials, lasted months longer than it now says.
Mr Kyle said a member of her team set up her LinkedIn profile and was responsible for errors in it.
Ms Reeves’ spokesperson 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”.
They added: “All expenses were submitted and signed off in the proper way.”
Jane Wayper, former HR business partner for HBOS who worked alongside Ms Reeves, also said she did not recognise any of the claims about her former colleague.
In a statement, she added: “In my role, I would have been made aware of any investigation which concluded there was a case to answer.”
