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A BBC report about Rachel Reeves's past sparked an on-air war between the corporation and a senior Cabinet minister.
The broadcaster has revealed that the Chancellor was investigated in 2009 over a complaint about expenses claims while working at Halifax bank.
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It came after a whistleblowing complaint against her raised concerns that she and two other senior colleagues were using the bank’s cash to “fund a lifestyle” including spending on dinner, events, taxis and presents.
However, Science Secretary Peter Kyle blasted the BBC report as “totally inaccurate”.
READ MORE: Rachel Reeves edits CV again after claims she exaggerated Bank of England career
Rachel Reeves is under fresh scrutiny (Image: Getty)
Mr Kyle told the Today programme on Radio 4: “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 receive a file on Rachel Reeves.
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“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.”
The expenses complaint accused the now-Chancellor of spending hundreds of pounds on handbags, perfume, earrings and wine.
The internal audit team found evidence of wrongdoing by Ms Reeves and her two colleagues, it is claimed, before passing the findings to the risk department in April 2009.
However, the next interview stage did not take place, nor is there evidence it reached a conclusion.
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Peter Kyle blasted the BBC's story (Image: Getty)
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Ms Reeves was also forced to edit her CV again after being accused of exaggerating the length of time she spent working at the Bank of England.
Ms Reeves has frequently claimed she spent "the best part of a decade" working at the central bank. On Thursday, she was forced to change the dates she said she worked at the Bank of England by nine months.
She, in fact, spent five and a half years there.
Mr Kyle added: “What you’ve seen with Rachel is a Chancellor who is an economist by training and by practice, and she’s brought that experience into government, and judge her on actions and not just words.”
Trending
Tory leader Kemi Badenoch insisted Ms Reeves has questions to answer.
She tweeted: “The BBC's investigation raises serious questions for Rachel Reeves.
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GB News star skewers stuttering Labour MP as he gives 'hilarious' Rachel Reeves defence
19 Comments
Bank of England humiliates Rachel Reeves with brutal downgrade to UK's growth forecast
56 Comments
Rachel Reeves is so out of her depth the UK is in a time machine back to the 1970s
272 Comments
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"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.”
The PM’s spokesman insisted Sir Keir Starmer still has full confidence in the Chancellor.