Angela Rayner has resigned from her positions as Deputy Prime Minister, Secretary of State for Housing, Communities and Local Government, and Deputy Leader of the Labour Party after an official investigation concluded that she had underpaid tax on a property purchase.
The controversy centered on her £800,000 flat in Hove, where she was found to have underpaid around £40,000 in stamp duty by designating the property as her main residence.
Sir Laurie Magnus, the government’s independent adviser on ministerial standards, ruled that while Rayner had not acted dishonestly, her actions failed to meet the standards expected of ministers.
In her resignation letter to Prime Minister Keir Starmer, Rayner expressed regret for not seeking specialist tax advice earlier and said she was stepping down not only because of the breach but also because of the toll the intense scrutiny had taken on her family.
She stressed that she wanted to prevent the matter from becoming a prolonged distraction for the Labour government.
Her resignation triggered an immediate cabinet reshuffle. Foreign Secretary David Lammy was named Deputy Prime Minister and Justice Secretary.
Yvette Cooper was moved to Foreign Secretary, Shabana Mahmood became Home Secretary, and Steve Reed replaced Rayner as Housing Secretary.
Rachel Reeves remained Chancellor of the Exchequer.
The resignation marks a significant blow to Starmer’s government, just months after Labour’s victory in the July general election.
Starmer expressed personal sadness at losing a close ally and one of the party’s strongest campaigners, acknowledging that the incident was a setback but insisting that his government would press ahead with its priorities.
Reaction across the political spectrum has been swift. Supporters praised Rayner for taking responsibility, while critics argued the affair highlighted deeper questions about integrity in public office.
Nigel Farage, leader of Reform UK, said the scandal showed Labour was “no better than the Conservatives they replaced.”
Rayner’s departure has also opened up a new battle within Labour, as the party now prepares for a deputy leadership contest. The election, expected to be concluded before the end of the year, is already attracting interest from both centrist and left-wing factions, raising the prospect of renewed debate about Labour’s ideological direction.
Rayner’s exit closes a turbulent chapter for a politician who rose from working-class roots to become one of Labour’s most prominent figures. Although she will remain an MP for Ashton-under-Lyne, her resignation from top government and party roles leaves a significant gap in Labour’s leadership at a critical time.
