Angela Rayner has stepped down as deputy prime minister after being found to have breached the ministerial code over her tax arrangements. The ethics watchdog, Sir Laurie Magnus, ruled that Rayner had acted with integrity but concluded she had broken the code by failing to seek additional tax advice on the purchase of a flat in Hove, East Sussex, resulting in an underpayment of about £40,000 in stamp duty.
Prime Minister Sir Keir Starmer brought forward a major cabinet reshuffle in an attempt to restore order following the crisis. Yvette Cooper became foreign secretary, Shabana Mahmood replaced her as home secretary, and David Lammy was appointed justice secretary and deputy prime minister. The reshuffle saw a dozen ministers moved to new roles, with only two sacked.
In her resignation letter, Rayner said she “deeply regrets” not taking specialist advice and cited the “significant toll” of media pressure on her family. Starmer responded with “real sadness”, saying she would remain a major figure in the party. Her departure removes one of Labour's most prominent working-class voices as the party struggles to reconnect with its traditional base and trails Reform UK in opinion polls.
Reform UK leader Nigel Farage said Rayner’s actions “scream of entitlement” and predicted that the deputy leadership contest could split Labour. The government now faces a bruising internal campaign to replace Rayner, which frustrated MPs may use to push for a change in direction. The reshuffle is seen as a further move to the right, with Ed Miliband becoming one of the few soft-left cabinet members still in post.
