Everything you need to know about the Rachel Reeves expenses row [Video]

“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.

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.

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.