Rear wheel leaking hydraulic oil and brakes not working

[Willsk]

My tea20 rear wheel shows hydraulic oil leaking from the rim, what could be the cause? The brakes are also not working any idea even if you try engaging them , looks like there is need for some loosening somewhere

 

[Stonehaller]

I had a similar problem on a '53 Golden Jubilee. It was the axle shaft seals leaking. Brake linings get saturated with oil and don't grab anymore.