Prime Minister Keir Starmer is facing his first major ethical crisis since entering Downing Street, as a renewed investigation into Deputy Prime Minister Angela Rayner's past property dealings threatens to engulf his fledgling government.
The controversy centres on allegations from 2015 concerning whether Ms Rayner, then a backbench MP, properly paid stamp duty on the sale of her former council house in Stockport. HM Revenue and Customs has now confirmed it is formally examining the matter following a fresh complaint.
This development strikes at the heart of Starmer's pledge to lead an administration of "integrity and accountability"—principles that now face their sternest test. The Prime Minister must weigh the political damage of standing by his deputy against the potential chaos of sacking one of his most senior ministers.
The Ghost of 'Beergate' Returns
This isn't the first time Ms Rayner's tax affairs have come under scrutiny. The so-called 'beergate' investigation during the last parliament—which also involved Keir Starmer—ultimately concluded without charges. However, this new HMRC probe focuses specifically on whether the correct amount of stamp duty was paid when she sold her property nearly a decade ago.
At issue is whether the property was correctly designated as her principal residence at the time of sale—a determination that significantly affects tax liability. Critics allege financial gain from misdeclaration, while supporters maintain all taxes were properly settled.
A Political Tightrope for Starmer
The Prime Minister's response will define his leadership early in his premiership. Removing his deputy would acknowledge serious wrongdoing but risk alienating the Labour left and destabilising his government. Retaining her without clear exoneration could undermine his anti-sleaze credentials and embolden opposition attacks.
Conservative MPs have already seized on the development, with former minister Sir Jacob Rees-Mogg declaring it "a test of whether this new government practices what it preaches."
Meanwhile, within Labour ranks, there is nervousness about how prolonged this controversy might become. One backbencher privately noted: "We promised to be different. We can't afford even the appearance of wrongdoing."
What Happens Next?
All eyes now turn to HMRC's investigation timeline and what Starmer will demand from his deputy. The Prime Minister has options ranging from full-throated defence to asking Ms Rayner to step aside temporarily until the matter is resolved.
With the government's agenda hanging in the balance, this personal tax matter has suddenly become Starmer's most pressing political problem—one that could determine both his deputy's future and his government's credibility.
