Angela Rayner has resigned from the government after the prime minister's ethics adviser ruled that she breached the ministerial code over her underpayment of stamp duty on her £800,000 flat in Hove. The deputy prime minister and housing secretary also stepped down as deputy leader of the Labour Party.
Sir Laurie Magnus, the independent adviser, concluded that Rayner had acted with integrity but found that she breached the code in relation to her tax affairs. Her exit is a significant blow to Keir Starmer, who had initially defended her. Downing Street confirmed that a reshuffle would follow, with Rachel Reeves remaining as chancellor.
Rayner referred herself to the adviser after confirming that she would have to pay additional stamp duty, potentially up to £40,000, because she had incorrectly paid the lower rate on the property. She had declared the flat as her only residence, despite spending considerable time at the family home in Ashton-under-Lyne, where her son, a beneficiary of a trust set up following a premature birth, lived.
In her resignation letter, Rayner said she deeply regretted not seeking specialist tax advice and cited the toll of media pressure on her family. Starmer replied that she would remain a major figure in the party. The resignation deprives the government of a prominent working-class voice at a time when Labour trails Reform UK in opinion polls.
The controversy is particularly awkward given that Rayner had earlier suggested raising stamp duty on commercial properties in a memo to the chancellor. Nigel Farage said her resignation “screams to entitlement”, while Conservative leader Kemi Badenoch said her position had been untenable for days.
