Sir Keir Starmer has indicated he is prepared to sack Angela Rayner if an ethics probe finds she breached the Ministerial Code over underpaid stamp duty, despite warnings of a Labour civil war. The Prime Minister acknowledged on Thursday that it falls to him to decide Rayner's fate once his standards adviser, Sir Laurie Magnus, reports back.
Starmer is reportedly reluctant to remove Rayner, who also serves as Housing Secretary, as he seeks to reset his struggling government ahead of the Labour Party Conference this month and a crucial Budget in November. Labour insiders warn that ousting Rayner could trigger a deputy leadership election, which would become a 'de facto referendum on Starmer's leadership' at a time when the party is losing ground to Reform UK in the polls.
One Labour insider described the ethics probe as a 'sliding doors moment' that could prompt a Cabinet reshuffle, with some MPs suggesting Cabinet Office minister Pat McFadden as Rayner's likely replacement as deputy prime minister. Judgment Day for Rayner could come as soon as Friday, with Magnus potentially reporting back in the afternoon.
Starmer told the BBC he wants a 'comprehensive' outcome and will act on the report, but repeatedly refused to confirm that Rayner would have to resign if found in breach. He contrasted the situation with Boris Johnson's refusal to sack Priti Patel in 2020, insisting his government has 'strengthened the procedure' for standards inquiries.
The outcome hinges on whether Rayner was honest in claiming she acted on legal advice when she paid the standard stamp duty rate on a £800,000 flat in Hove, saving £40,000. Sources close to Rayner say she received three separate pieces of legal advice, including from a conveyancer and two trust law experts, all suggesting the amount was correct. However, Joanna Verrico, managing director of the conveyancing firm involved, denied giving tax advice, stating her firm used HMRC's online calculator based on information provided by Rayner.
The controversy escalated as graffiti targeting Rayner was discovered on her Hove flat, with the words 'bitch' and 'tax evader' sprayed on the exterior. Downing Street condemned the vandalism as 'appalling', while Rayner's spokesperson called it 'beyond the pale' and a matter for police.
