Angela Rayner has resigned as Deputy Prime Minister in a dramatic turn of events that has plunged Sir Keir Starmer’s Labour Government into its deepest crisis since taking office. Her departure follows a Telegraph investigation that revealed she failed to obtain proper tax advice when purchasing a seaside flat in Hove, East Sussex, leading to a £40,000 shortfall in stamp duty.
The resignation, announced on Thursday, comes only a week after Starmer attempted to relaunch his Government with a Cabinet reset. It forces the Labour Party into an internal election for deputy leader and opens up the risk of a hard-Left figure emerging as a new power centre within the party.
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Breach of the Ministerial Code
Sir Laurie Magnus, the Prime Minister’s independent adviser on ministers’ interests, concluded in a damning report that Rayner had breached the ministerial code. Although he praised her integrity and commitment to public service, he found that her failure to seek expert tax advice meant she had not met the “highest possible standards of proper conduct.”
In his letter to Starmer, Sir Laurie wrote:
“While I believe Ms Rayner has acted with integrity and a dedicated commitment to public service, the fact that her stamp duty liability was established only after intensive public scrutiny leads me to advise that she cannot be considered to have met the standards required by the code. Accordingly, it is with deep regret that I must advise you that in these circumstances, the code has been breached.”
A Reluctant Farewell
Rayner, who also resigned as Housing Secretary and deputy leader of the Labour Party, accepted full responsibility in her resignation letter.
“I have always taken my responsibilities with the utmost seriousness,” she wrote. “While the independent adviser concluded that I acted in good faith and with honesty, I accept that I did not meet the highest standards in relation to my recent property purchase. I deeply regret my decision not to seek additional specialist tax advice given my role as Housing Secretary and my complex family arrangements. It was never my intention to avoid paying the correct amount.”
Rayner said the pressure on her family, combined with the adviser’s findings, left her with no option but to resign.
Starmer, in a handwritten reply, accepted her resignation “with great sadness.” He described Rayner as a trusted colleague and close friend, praising her as “the living embodiment of social mobility.” He added that she would remain “a major figure in our party” even outside government.
Mounting Pressure
The scandal gathered momentum after The Telegraph reported that Rayner had failed to pay the stamp duty surcharge normally applied to second homes. The controversy was amplified by the fact that she was serving as Housing Secretary, overseeing policy on second homes at the time.
Initially, Rayner’s team insisted she had acted correctly and paid all taxes due. Supporters argued she was being unfairly targeted because of her working-class background and Northern roots. For days, Starmer defended her, urging colleagues to rally behind his deputy.
But the defence collapsed after new legal advice confirmed she should have paid the higher rate. Rayner admitted the error on Wednesday, just hours before Prime Minister’s Questions, and placed her fate in the hands of Sir Laurie Magnus. His report, delivered the following day, sealed her departure.
Fallout for Labour
Rayner’s resignation creates both political and policy challenges for Labour. With her exit, Starmer loses one of the most prominent Northerners in his Cabinet, fueling accusations that his Government is dominated by Londoners.
The timing is particularly damaging, coming just as Chancellor Rachel Reeves prepares her November Budget. The revelation that a senior minister failed to pay property taxes is likely to undermine public confidence in any attempt to raise taxes on property or wealth.
Labour must now organise a deputy leadership election, opening the possibility that members could elect a candidate from the party’s Left, complicating Starmer’s effort to present Labour as a centrist, stable government-in-waiting.
Wider Pattern of Resignations
Rayner’s departure is only the latest in a string of ministerial exits that have dogged Starmer’s 14-month-old administration. Louise Haigh was forced out after admitting to a past fraud conviction, and City Minister Tulip Siddiq resigned over questions about her links to a corruption case in Bangladesh.
Still, Rayner’s exit is seen as the most damaging by far, given her seniority and symbolic role within the party.
A Career Marked by Struggle
Rayner’s trajectory, from a care worker and trade union organiser to one of the most senior figures in British politics, had made her a symbol of social mobility. She was elected deputy Labour leader in 2020 and became a fierce campaigner on issues of housing, workers’ rights, and inequality.
Her resignation underscores the high standards expected of ministers, particularly on financial matters. It also exposes the fragility of Starmer’s leadership as he grapples with crises from within his own ranks.
For now, Labour faces not only the political fallout but also the challenge of restoring public trust in its promise of clean and competent government.
