Deputy Prime Minister Angela Rayner has resigned after being found in breach of the ministerial code over her tax arrangements, throwing the Labour government into turmoil. Prime Minister Keir Starmer has brought forward a major cabinet reshuffle in an attempt to restore order, but the fallout is expected to further damage the party's reputation.
The ethics watchdog, Sir Laurie Magnus, ruled that Rayner had acted with integrity but concluded she breached the code by failing to seek specialist tax advice on her purchase of a seaside flat in Hove, East Sussex, resulting in an underpayment of about £40,000 in stamp duty. In her resignation letter, Rayner expressed deep regret and cited the toll on her family from media pressure.
Starmer's reshuffle saw Yvette Cooper appointed as foreign secretary, Shabana Mahmood as home secretary, and David Lammy as justice secretary and deputy prime minister. The changes are seen as a move to the right, with Ed Miliband remaining one of the few soft-left cabinet members. The reshuffle also aimed to divert attention from Rayner's departure, but internal party tensions are expected to rise as a contest to replace her as deputy leader looms.
Reform UK leader Nigel Farage seized on the crisis, calling Rayner's actions 'screams of entitlement' and predicting a potential party split. Labour now faces a challenging autumn, with Chancellor Rachel Reeves expected to raise taxes, while trailing Reform UK in polls and struggling to reconnect with traditional voters.
