Angela Rayner has resigned from her roles as Deputy Prime Minister, Housing Secretary and Deputy Leader of the Labour Party following an investigation into her property dealings.
Her departure comes after Sir Laurie Magnus, the Prime Minister’s independent adviser on ministerial standards, concluded that she had breached the ministerial code by failing to seek appropriate tax advice during the purchase of her seaside flat in Hove, East Sussex. The move meant she avoided paying an estimated £40,000 in stamp duty.
In his findings, Sir Laurie acknowledged Ms Rayner’s commitment to public service and said she had acted with integrity, but ruled that her conduct fell short of the “highest possible standards” expected of ministers. He stressed that she had been advised to seek expert tax guidance but did not, which ultimately led to the underpayment.
Ms Rayner referred herself for investigation earlier this week after new legal advice confirmed she should have paid the higher rate of tax levied on second homes. While initially insisting she had met her obligations, she later admitted a mistake.
In her resignation letter, Ms Rayner said she accepted full responsibility for the error and that the pressure on her family had become unbearable. “It was never my intention to do anything other than pay the correct amount,” she wrote. “I deeply regret not seeking additional specialist advice, and I accept that I did not meet the standards required.”
Sir Keir Starmer accepted her resignation “with great sadness”, praising her as a trusted colleague and “a true friend”. He said she would remain an important figure in the Labour Party despite leaving government.
The resignation is a major blow to Sir Keir’s administration, which is only 14 months into office. It follows the departure of other senior ministers in recent months and threatens to destabilise Labour further, particularly with a deputy leadership election now on the horizon. Party insiders fear members could back a candidate from the party’s left, complicating Starmer’s efforts to maintain discipline.
The scandal also creates difficulties for Chancellor Rachel Reeves, whose plans to raise property taxes in the autumn Budget are likely to face heightened scrutiny.
Rayner’s exit marks the most damaging loss yet for the Labour government, given her seniority and role as one of the party’s most prominent northern voices. Her resignation leaves Starmer to carry out a hasty Cabinet reshuffle while attempting to steady his government amid growing pressure.
