Keir Starmer is battling a crisis after his deputy prime minister, Angela Rayner, was forced to resign over a breach of the ministerial code concerning her tax arrangements. Rayner underpaid approximately £40,000 in stamp duty on a property in Hove, prompting her resignation from all three of her roles, including deputy leader of the Labour Party.
The ethics watchdog, Sir Laurie Magnus, found that Rayner had “acted with integrity” but concluded she had breached the code. In her resignation letter, Rayner expressed deep regret for not seeking specialist tax advice and cited the “significant toll” of media pressure on her family.
Starmer responded with a handwritten note expressing “real sadness,” saying Rayner would remain a major figure in the party. To divert attention, he brought forward a cabinet reshuffle, moving Yvette Cooper to Foreign Secretary, Shabana Mahmood to Home Secretary, and David Lammy to Justice Secretary and Deputy Prime Minister.
Other moves included Pat McFadden taking over the Department for Work and Pensions, Liz Kendall moving to Science and Technology, and Steve Reed assuming Rayner’s housing portfolio. The reshuffle was seen as a shift to the right, orchestrated by chief of staff Morgan McSweeney.
Reform UK leader Nigel Farage claimed Rayner’s actions “scream of entitlement” and predicted a potential Labour split. The crisis further damages Labour’s reputation as it trails Reform in polls and faces a tough autumn with expected tax rises.
