Lammy keeps grace-and-favour home as reshuffle places him in deputy prime minister role

David Lammy will continue to reside in the Foreign Secretary’s £25 million grace-and-favour home after being assigned another senior post in the latest government reshuffle, according to officials familiar with the arrangement. The decision keeps him in One Carlton Gardens, the grandest of official ministerial residences, even as he takes on the roles of Deputy Prime Minister and Justice Secretary earlier this month. While Mr. Lammy keeps the property, his successor as foreign secretary, Yvette Cooper, will have use of the residence for diplomatic receptions, and she will also have sole use of Chevening, the Foreign Secretary’s country residence in Kent.

The arrangement underscores the continuing use of a long-standing perk within the executive office as the administration reorganises key portfolios. One Carlton Gardens, a Regency-era townhouse in central London, is traditionally reserved for the Foreign Secretary, a status that has now extended to accommodate Mr. Lammy’s expanded duties. The shift comes as ministers seek to balance ceremonial duties with the practical logistics of running an enlarged government, while navigating heightened scrutiny over expenses and official hospitality in a period of belt-tightening.

In the same reshuffle, Yvette Cooper will retain a base in the diplomatic circuit by using the grace-and-favour residence for official receptions tied to foreign diplomacy. The decision means that while Mr. Lammy will physically occupy One Carlton Gardens, the property will increasingly function as a venue for high-profile events tied to the Foreign Secretary’s broader outreach, with Cooper free to stage diplomatic functions there as part of her portfolio. Officials stressed that the Living arrangements align with Cabinet Office guidance and that any expenditure on receptions and related events remains subject to scrutiny and value-for-money controls.

The spotlight on official hospitality intensified as details emerged about a substantial summer reception hosted by the Foreign Secretary prior to the reshuffle. Records released under the Freedom of Information Act show that the event, held in the garden of Lancaster House, drew about 1,001 attendees, including 560 participants such as Heads of Mission, ambassadors, high commissioners, and other Foreign Office staff. The scale of the party has prompted questions about spending, given concurrent government austerity measures and a broader push to curb non-essential outlays.

Financial disclosures show a breakdown of the nearly £50,000 bill for the summer reception. About £3,696 went toward entertainment for diplomats and staff, including performances by pop artist Heather Small performing classics such as Proud and Moving On Up. Food and drink accounted for roughly £20,249 of the total, with a substantial portion dedicated to catering for a large international guest list—an event described by officials as the annual summer reception for the Diplomatic Corps and UK Ambassadors and High Commissioners. Additional costs included around £10,510 for staff and £252 for beverages, with the balance supported by sponsors. The event, which accommodated 145 Heads of Mission and 98 other Foreign Office staff, happened a few days after the 25th anniversary of Mr. Lammy’s first election to Parliament.

The Foreign Office argued that the reception is a routine event designed to foster international ties and facilitate engagement with diplomats and partners across the public and private sectors. A Foreign Office spokesman said the gathering is an annual event that serves as a consolidating platform for diplomacy, and that expenditures for receptions and events are heavily scrutinised in line with Cabinet Office guidance to ensure value for money.

The party occurred in a period of broader fiscal constraint for the department. Recent budget deliberations associated with a spending review included a 7 percent reduction to the Foreign Office’s budget, with implications for staffing and overseas aid. Officials have warned that the department could face staffing reductions as part of the government’s drive to redirect resources toward defence and security priorities. The broader context features a planned 40 percent cut to overseas aid from 2027, paired with commitments to maintain effect in defence spending. Critics say the timing of the summer reception raised questions about whether hospitality and prestige projects were properly aligned with the current fiscal environment.

Shadow figures raised concerns about the propriety of such spend, particularly in light of proposed hospitality limits announced by other ministers earlier in the year. Mike Wood, a shadow Cabinet Office minister, questioned who approved the event and why the rules did not apply to the department. He urged an explanation from the government about how the spending aligned with published guidelines and what safeguards were in place to prevent recurrent lapses. Joanna Marchong of the TaxPayers’ Alliance emphasized the contrast between government hospitality and the pressures faced by businesses and families in a time of economic stress, calling for renewed discipline in public spending and suggesting ministers rethink similar events in the future.

Foreign Office officials maintained that the summer reception was part of a long-standing practice meant to bolster diplomatic networks and raise the profile of Britain’s international engagements. They stated that the event included both public-private-sector partners and senior officials, reflecting the government’s objective to sustain dialogue with foreign partners at a moment of shifting global priorities. In response to questions about the line between ceremonial duties and cost controls, the department reiterated that all expenditure is subject to scrutiny and value-for-money assessments and is bound by established guidelines.

As Lammy assumes the roles of Deputy Prime Minister and Justice Secretary in addition to his duties connected with the Foreign Secretary’s office, observers will watch how the spread of responsibilities affects the management of official residences and related hospitality. The decision to let Lammy retain One Carlton Gardens while Cooper uses the property for receptions signals a pragmatic approach to governance, prioritising access to diplomatic facilities and the continuity of operations during a period of reshuffle and fiscal constraint. The arrangement also underscores the continued relevance of historic ministerial residences in the orchestration of statecraft and diplomacy, even as the government seeks to streamline public-sector spending.

The government has pointed to ongoing efforts to tighten controls on official hospitality and travel, with ministers urged to exercise caution when contemplating freebies or lavish events. For now, Lammy’s occupancy of the grace-and-favour home and Cooper’s anticipated use of the same property for official functions mark a continuation of established practices, tempered by a climate of heightened scrutiny over public spending and the need to demonstrate value for money to taxpayers.