Labour minister Douglas Alexander has acknowledged that Deputy Prime Minister Angela Rayner faces “fair questions” over her failure to pay £40,000 in stamp duty on the purchase of her Hove flat.
Speaking to Times Radio yesterday, the trade minister said the matter would be handled through a “rigorous testing process” led by the Prime Minister’s ethics adviser, Sir Laurie Magnus.
“These are fair questions, indeed good questions, but they’re questions for Sir Laurie Magnus, the independent adviser on ministerial standards,” Alexander said. “That will be a rigorous testing process. Keir Starmer first strengthened the ministerial code and then strengthened the role of the independent adviser on ministerial standards. It will be for the Prime Minister, as always, to make judgments in relation to his ministers.”
Alexander stopped short of saying whether Rayner should be sacked if the inquiry finds she breached the ministerial code.
Conveyancers Reject Blame
The firm that handled Rayner’s £800,000 Hove flat, Verrico & Associates, has denied providing her with tax or trust advice and said it is being made into “scapegoats.”
Managing director Joanna Verrico told The Telegraph:
“We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for. The stamp duty for the Hove flat was calculated using HMRC’s own online calculator, based on the figures and information provided by Ms Rayner.”
The comments appear to contradict Rayner’s claim that she underpaid the tax based on legal advice she had received.
Political Fallout
Keir Starmer has indicated he is prepared to act if Magnus concludes Rayner broke the ministerial code. The Prime Minister told the BBC: “I am expecting a result pretty quickly… and then of course I will act on whatever the report is that’s put in front of me.”
The investigation has created a significant political challenge for Starmer, just days after he sought to reset his premiership by reshuffling his team in Downing Street.
Conservative leader Kemi Badenoch said: “This is yet more damning evidence that Angela Rayner has not been honest with the British public. From the start, we’ve had nothing but excuses, deflections and lies. Enough is enough.”
How the Dispute Began
The controversy began when The Telegraph revealed Rayner had declared the Hove property as her main residence, reducing her stamp duty bill from £70,000 to £30,000. Because her son, a minor, holds a stake in her Ashton-under-Lyne home through a trust, experts say the flat should have been treated as a second home.
Rayner admitted earlier this week that she had underpaid the duty but said she had acted in good faith based on legal advice. She has since referred herself to HMRC and pledged to comply fully with the ongoing investigation.
Mounting Pressure
Senior Labour figures have been cautious in their support. Chancellor Rachel Reeves said it was “on all of us” to understand tax rules, while Education Secretary Bridget Phillipson refused to confirm whether Rayner should remain in her post.
Meanwhile, Conservative figures accused her of misleading the public. Tory chairman Kevin Hollinrake said: “It is not complicated. It is very clear you should pay the extra stamp duty if your children own a property through a trust and you then buy a second property.”
