
Homelessness minister must resign over rent hike after tenants' exit, Tories say
Ms Ali's property was then re-listed with a £700 rent increase within weeks, the newspaper said.
Kevin Hollinrake, the Conservative party chairman, called for the minister to stand down, accusing her of 'staggering hypocrisy' over her handling of the rental property.
A spokesperson for the minister said: 'Rushanara takes her responsibilities seriously and complied with all relevant legal requirements.'
The house, rented on a fixed-term contract, was put up for sale while the tenants were living there, and it was only re-listed as a rental because it had not sold, according to the i Paper.
Tory frontbencher Mr Hollinrake said: 'I think it shows staggering hypocrisy. Rushanara Ali has been somebody who's obviously a Government minister in charge of homelessness.
'She's spoken out about exploiting tenants, about providing more protections to tenants.
'You can't say those things, then do the opposite in practice, as a landlord. She's got to resign.'
He said the conduct appeared to be 'unethical, not illegal' but 'we can't just say one thing and do another'.
The minister's actions have also faced scrutiny from rental rights campaigners, as the Government seeks to clamp down on what it sees as unfair rental practices.
The Renters' Rights Bill includes measures to ban landlords who end a tenancy to sell a property from re-listing it for six months.
The Bill, which is nearing its end stages of scrutiny in Parliament, will also abolish fixed-term tenancies and ensure landlords give four months' notice if they want to sell their property.
Ben Twomey, chief executive of Generation Rent, described the allegations as 'shocking and a wake-up call to Government on the need to push ahead as quickly as possible to improve protections for renters'.
He added: 'It is bad enough when any landlord turfs out their tenant to hike up the rent, or tries their luck with unfair claims on the deposit, but the minister responsible for homelessness knows only too well about the harm caused by this behaviour.
'These allegations highlight common practices that the Government can eradicate.
'The Renters' Rights Bill would ban landlords who evict tenants to sell the property from re-letting it within 12 months, to deter this kind of abuse – but unfortunately members of the House of Lords have voted to reduce this to six months.
'The Government can also use its review of the deposit protection system to penalise landlords who make exaggerated claims at the end of the tenancy.'
Tom Darling, director at the Renters' Reform Coalition, said: 'It's mind-boggling that we have a homelessness minister who has just evicted four people in order to rake in more rent – something that will soon be illegal under the Renters' Rights Bill her own department is bringing through Parliament.
'The Government are currently considering an amendment to the legislation from the House of Lords which reduces the ban on re-letting after eviction from 12 months to six months.
'The Government must remove this amendment, and at the very least minister Ali must recuse herself from any discussions on this within Government.'
Speaking to broadcasters, Home Secretary Yvette Cooper insisted Ms Ali had not breached any rules.
'I don't know any of the details of this, but I understand that she has followed all of the rules in this case,' Ms Cooper said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

The National
32 minutes ago
- The National
The tax haven firms given cash by the Scottish Government
Other offshore firms in receipt of public subsidies ditched pledges to create hundreds of jobs, or laid off hundreds of workers just a few years after accepting millions of pounds of taxpayer handouts. This investigation is part of The Ferret's ongoing Money Trail series, in which we are exploring how international wealth flows through Scotland, and how it shapes our politics, public finances, and land and property ownership. Our findings prompted calls from an MSP to give the Scottish Government the means to 'claw back' public funds when firms fail to deliver on promises of jobs and investment. Campaigners and the Scottish Greens want the public funding of tax havens to be banned altogether. READ MORE: 'Absolutely crazy': Scottish jazz artist scores new film by Hollywood director Incorporating a firm offshore does not equate to wrongdoing. But the anonymity afforded to corporate owners in jurisdictions like the Cayman Islands, British Virgin Islands, or the US state of Delaware creates risks of 'corruption and tax abuse', campaigners warned. Transparency International UK argued that companies must be required to reveal their true owners before they are given public money. Scottish Enterprise (SE), the Government's business agency, awards grants and other payments to firms active in Scotland or seeking to set up a base here, incentivising them to invest and create local jobs. The agency's financial support led to more than 9000 Scottish jobs being generated by global companies last year alone, it said. But some subsidised firms collectively promised to create more than 1000 jobs which either failed to materialise, or were cut just years later, while 1150 more are at risk. The Ferret analysed a list of grants, investments and other payments of more than £25,000 that SE made to nearly 2600 companies between January 2020 and December 2024. We identified 18 that were ultimately owned in tax or secrecy havens, and had been given £1m or more in grants by Scottish Enterprise over the investment agency's lifetime. Mangata Networks IN 2022, the Delaware-incorporated satellite maker, Mangata Networks, announced a hub in Prestwick which it claimed would create 575 new jobs. A total of £84m in taxpayer funding was pledged – £54.5m from SE and £29m from the Scottish, UK, and Ayrshire local governments – that was expected to be repaid over 15 years. Files released by the Scottish Government, via a separate FOI request, claim Mangata's boss 'clearly stated' he would only choose Scotland if given 'an incentive package' that exceeded an offer from a rival country. However, Mangata last year scrapped plans to create the jobs, reportedly blaming challenging economic conditions, increased material costs and supply chain issues. Mangata said at the time it would continue its Scottish research and development operations, which were subsidised by a separate SE grant. Mangata has received £4.3m from SE to date. SE stressed that subsidised firms are typically paid in tranches at pre-agreed milestones, and are required to evidence project expenditure before they can claim grant payments. As such Mangata will not receive the full £54.5m originally pledged. LumiraDx IN 2021, SE agreed to provisionally award £15m to LumiraDx – a Cayman Islands-owned health diagnostics firm – to help create 500 to 750 new jobs as part of plans to establish hubs across Scotland. But two years later, the firm had announced 510 redundancies in Clackmannanshire and Stirlingshire. LumiraDx reportedly said it grew its operation to make Covid-19 test kits, and was shrinking back to pre-pandemic levels. LumiraDx, which received £3.6m from SE, is in the process of being liquidated, according to the UK business registry. Spirit AeroSystems SPIRIT AeroSystems, whose parent company is also incorporated in the tax and secrecy haven of Delaware, makes planes and US military aircraft. It opened a hub in Prestwick in 2021, and took nearly £7.9m in SE grants. Then-first minister Nicola Sturgeon making a keynote speech on Scotland's economy at Spirit AeroSystems in Prestwick in 2017First Minister at the time Nicola Sturgeon said then that the facility could create more quality manufacturing jobs. But Airbus is taking over most Prestwick operations from the loss-making Spirit, and promised only to retain the 1150 workers based there in the short-term. Clydeport THE west coast ports, run by Peel Ports and ultimately owned in the Cayman Islands, received £1.1m from SE via their subsidiary companies. A member of Westminster's public accounts committee claimed in 2013 that Peel did 'not pay their fair share of corporation tax' – a claim rejected by the company. READ MORE: Nicola Sturgeon 'felt like disappearing into North Sea after arrest', excerpt reveals Its billionaire chair, John Whittaker, who is domiciled in the tax haven of the Isle of Man, was last year accused of leaving Ardrossan port to ruin, while he and other shareholders received nearly £300m in dividends. Port director Jim McSporran told The Ferret his firm invested £68m in Scotland in the last three years, which would 'transform the economic prosperity of the west coast' and create 'thousands of jobs'. THE tech firm was given £1.1m by SE. It was part of Work Tech Group – which is incorporated in the British Virgin Islands (BVI) – until it demerged from the group in January. The BVI is a renowned tax and secrecy haven and Work Tech's latest UK accounts state that the controlling party of the company is 'not known'. Earlier in July, the BVI and several other UK offshore territories failed to meet the final deadline to introduce publicly accessible beneficial ownership registers designed to deter financial corruption. A spokesperson said Work Tech Group was also registered in the UK, requiring it to disclose the same information as UK companies, and pay corporation tax. Both Work Tech and 'met their tax and reporting obligations', they added. HarperCollins THE publishing firm – founded in Glasgow but owned by News Corporation for decades – received nearly £2m from SE to design and install a robotic management system at its Robroyston warehouse. Rupert Murdoch News Corp, owned by the family of billionaire media baron Rupert Murdoch, is incorporated in Delaware. Calls for tighter rules and 'clawback clause' CAMPAIGNERS and MSPs urged SE to demand more transparency from companies about their ownership and tax affairs before awarding public money to them with conditionality attached to grants. Others challenged the investment arm to stop funding tax haven firms altogether. Tom Brake, a former LibDem MP and director of campaign group Unlock Democracy, highlighted that Holyrood blocked Covid-19 relief funds to tax haven firms after parliament backed a Green amendment to a 2020 bill. 'There is a cast-iron case for adopting this policy comprehensively to stop taxpayers' money from disappearing into companies whose tax affairs are a closed book,' he added. The Greens also called on the Scottish Government to adopt the policy 'on a permanent basis'. Labour MSP Paul Sweeney urged SE to write 'a clawback clause' into contracts to recoup public funds if firms 'fail to deliver' on projects, or later slash their Scottish investments. 'There have been too many cases of public subsidies being awarded to projects undertaken by multinational firms that have failed to create the jobs and economic growth that were promised,' he said. READ MORE: 'F***ing slags': Oasis take aim at Edinburgh Council chiefs in first Murrayfield gig Alex Cobham, chief executive of the Tax Justice Network, stressed that while not all firms using secrecy jurisdictions are 'behaving badly', the lack of transparency creates risks of 'corruption and tax abuse'. Any company receiving public funds should be required to disclose their financial affairs in all the jurisdictions where they operate, he argued. Juliet Swann of Transparency International UK also called for tighter rules. 'Requiring companies registered in tax havens to disclose their true owners as a condition of receiving public funding would dramatically improve due diligence,' she said. 'The public has a right to know who ultimately benefits from their money.' A spokesperson for Scottish Enterprise said: 'Global businesses are attracted to Scotland by its collaborative business support environment, access to a skilled workforce, as well as a range of funding packages to develop new, or grow existing, operations here. Scottish Enterprise's focus is on attracting and working with inward investors to invest and create jobs in Scotland. 'As a direct result of our support last year, global companies choosing to locate here generated more than 9000 jobs in Scotland. 'Corporation tax is a matter reserved to the UK Government and decisions around the location of registered offices are made by individual companies and are based on a wide range of factors.' Every company named in this article was approached for comment.

Rhyl Journal
an hour ago
- Rhyl Journal
More pets to be allowed in military accommodation as ministers cut red tape
Service personnel and their families have previously faced a bureaucratic process to get permission to own a pet if they live in military housing. But from this week they will be allowed to keep up to two dogs, cats or smaller pets without needing permission, with the Ministry of Defence recognising the 'vital role' they play in family life and mental wellbeing. Defence minister Al Carns said: 'As a dog owner and Royal Marine who served for 24 years, much of it in service accommodation, I'm delighted to be making it easier for our dedicated personnel to own family pets.' Other changes introduced this week will see service personnel given more freedom to personalise their accommodation and new, easier processes for their family members to run a business from their home. The changes are part of Defence Secretary John Healey's pledge to 'stop the rot' and improve standards in service accommodation. He said: 'Our armed forces make extraordinary sacrifices to keep us safe every day. 'But for too long, military families have lived in substandard housing without basic consumer rights. 'These new measures are a key milestone as we deliver on our consumer charter to stop the rot in military accommodation and ensure our heroes and their loved ones live in houses they can truly call home.' In April, Mr Healey announced a new 'consumer charter' for service accommodation, including more reliable repairs, a named housing officer for every service family and a higher minimum standard for housing. The Government has also brought 36,000 military homes back into public ownership in an effort to reduce costs and improve standards.


North Wales Chronicle
an hour ago
- North Wales Chronicle
More pets to be allowed in military accommodation as ministers cut red tape
Service personnel and their families have previously faced a bureaucratic process to get permission to own a pet if they live in military housing. But from this week they will be allowed to keep up to two dogs, cats or smaller pets without needing permission, with the Ministry of Defence recognising the 'vital role' they play in family life and mental wellbeing. Defence minister Al Carns said: 'As a dog owner and Royal Marine who served for 24 years, much of it in service accommodation, I'm delighted to be making it easier for our dedicated personnel to own family pets.' Other changes introduced this week will see service personnel given more freedom to personalise their accommodation and new, easier processes for their family members to run a business from their home. The changes are part of Defence Secretary John Healey's pledge to 'stop the rot' and improve standards in service accommodation. He said: 'Our armed forces make extraordinary sacrifices to keep us safe every day. 'But for too long, military families have lived in substandard housing without basic consumer rights. 'These new measures are a key milestone as we deliver on our consumer charter to stop the rot in military accommodation and ensure our heroes and their loved ones live in houses they can truly call home.' In April, Mr Healey announced a new 'consumer charter' for service accommodation, including more reliable repairs, a named housing officer for every service family and a higher minimum standard for housing. The Government has also brought 36,000 military homes back into public ownership in an effort to reduce costs and improve standards.