Lammy keeps grace-and-favour home as reshuffle hands him deputy roles; party cost under scrutiny

David Lammy will continue to live in the Foreign Secretary’s grace-and-favour residence at One Carlton Gardens, despite being named Deputy Prime Minister and Justice Secretary in the latest reshuffle. He will retain use of the grand flat, long regarded as the most prestigious official ministerial residence, while his successor, Yvette Cooper, will have use of the property for diplomatic receptions and sole access to Chevening, the Foreign Secretary’s country residence in Kent. The arrangement underscores ongoing allowances tied to senior ministers even as leadership roles change hands and as government budgets come under pressure. The property is valued at about £25 million and is the grandest of the official residences reserved for the Foreign Secretary.

Lammy’s department spent nearly £50,000 on a summer reception at Lancaster House for diplomats, political advisers and staff. The event, held July 1, was attended by 560 guests, including 145 Heads of Mission and 98 other Foreign Office staff, with invitations issued to about 1,001 people. Entertainment amounted to £3,696, while food cost £19,997; staff costs were £10,510 and drink £252, with the remainder provided by sponsors. The Foreign Office described the reception as the annual summer event for the Diplomatic Corps and UK Ambassadors and High Commissioners, noting that the expenditure was thoroughly scrutinised for value for money.

Weeks earlier, the Foreign Office faced a 7 per cent budget cut at the spending review, with hundreds of staff slated for redundancy or redeployment, and overseas aid earmarked for a 40 per cent reduction from 2027 to help fund higher defence spending. Officials were urged to curb wasteful spending, including limiting staff away days and other discretionary hospitality.

Critics weighed in. Shadow Cabinet Office Minister Mike Wood said: "Only months after Pat McFadden announced new hospitality limits, it beggars belief that David Lammy’s department signed off nearly £50,000 of taxpayers’ money on a summer party. The Government must explain who approved this spending and why the rules don’t seem to apply to them. Only the Conservatives have a plan to control government spending." Joanna Marchong, investigations campaign manager at the TaxPayers' Alliance, added: "The contrast to the life of luxury lived by many ministers with the desperate situation of businesses and families could not be starker. While politicians are toasting to their failures, family farms are fighting to survive and business owners are working through the night just to keep the lights on following Reeves’ devastating tax raid last autumn. Ministers should think again about throwing similar events in the future." A Foreign Office spokesman said: "The Foreign Secretary’s summer reception is an annual event which provides an opportunity to bring together London-based foreign diplomats, senior Foreign Office officials, and a range of high-profile individuals across the UK private and public sectors. As per Cabinet Office guidance, all expenditure on receptions and events is heavily scrutinised to ensure value for money."