Angela Rayner has resigned as Deputy Prime Minister following controversy over her tax affairs, marking a major setback for Sir Keir Starmer’s premiership.
Rayner stepped down on Friday, just days after admitting she had failed to pay a £40,000 tax bill related to the purchase of her seaside home. Initially, she suggested she had relied on legal advice, but later revelations from her lawyers claimed they had been made “scapegoats” and had not provided her with tax guidance.
Her resignation comes amid an investigation by Sir Laurie Magnus, the independent adviser on ministerial ethics, after Rayner referred herself to the watchdog and HMRC following a report by The Telegraph. That report, published on August 28, revealed she had avoided additional stamp duty charges normally applied to second-home purchases.
The scandal is the most damaging to hit the Labour Government since it entered office 14 months ago. It also lands just weeks before the party conference, where Starmer had been hoping to reset his government’s agenda.
While the Prime Minister publicly defended Rayner, praising her for going “over and above” in disclosing her family circumstances, mounting pressure ultimately led to her departure. Cabinet colleagues had rallied behind her, insisting she did not need to quit, but Rayner confirmed she would leave her Cabinet roles.
If she also chooses to step down as deputy Labour leader, it would trigger a leadership contest for her position, which is elected by party members.
Meanwhile, the conveyancing firm involved in her £800,000 flat purchase in Hove has denied any wrongdoing, insisting on Thursday that it handled the transaction correctly.
