Britain’s Deputy Prime Minister, Angela Rayner, stepped down on Friday after an inquiry concluded that she violated the ministerial code by underpaying property tax, dealing a heavy setback to Prime Minister Keir Starmer’s Labour government.
Rayner, a prominent figure within the Labour Party’s left-wing base, had earlier admitted to underpaying a surcharge on a flat purchase. She referred herself to the government’s ethics adviser, acknowledging the lapse.
In a letter to Prime Minister Starmer, ethics chief Laurie Magnus explained that Rayner ignored legal advice that cautioned her, leading to a breach of the ministerial code.
“I accept that I did not meet the highest standards,” Rayner wrote in her resignation letter, where she also confirmed she was resigning as Housing Minister and Deputy Leader of the Labour Party. Expressing regret, she added, “I deeply regret my decision to not seek additional specialist tax advice. I take full responsibility for this error.”
Responding to her departure, Starmer expressed his sadness, noting: “You will remain a major figure in our party.”
The resignation deepens the Labour government’s challenges, which have included U-turns on welfare policies and benefits for the elderly, alongside its inability to curb migrant crossings by small boats. These setbacks have boosted support for Nigel Farage’s Reform UK party, which is now leading Labour in national polls, though the next election is not expected until 2029.
Rayner revealed earlier this week that she underpaid stamp duty on a seaside flat in Hove, southern England. Reports alleged she had saved £40,000 ($53,000) by removing her name from the deeds of another property.
Explaining the situation, Rayner said that following her 2023 divorce, she sold her share of the family home to a trust fund established for her son, who is registered blind with lifelong needs, to secure his future in the specially adapted property. She then purchased the £800,000 flat in Hove, claiming it was her main residence to qualify for lower property tax. However, she later admitted this was inaccurate since her underage son’s trust still linked her to the original home.
Magnus noted that the rules surrounding the issue carried “a considerable degree of complexity,” and while Rayner had twice been advised the lower tax rate applied, the advice did not amount to specialist tax counsel. Her failure to seek further guidance meant she fell short of the highest standards of conduct.
Rayner, once considered a possible future Labour leader, has long been a key target for attacks by the Conservative Party and right-leaning media. Her straight-talking approach has resonated with working-class voters, shaped by her own upbringing in one of Stockport’s deprived housing estates. Leaving school with no qualifications after becoming a teenage mother at 16, she rose through the Labour ranks to become Deputy Prime Minister, admired for her resilience and plain-spoken political style.
What You Should Know
Angela Rayner’s resignation is not only a personal setback but also a political blow to Prime Minister Keir Starmer’s government.
Once tipped as a future Labour leader, Rayner’s departure comes at a time when Labour is facing mounting criticism and declining public support.
Her working-class roots and rise to prominence made her a relatable figure for many voters, but her mistake over property tax has now forced her out of one of the highest offices in government.
