Deputy Prime Minister Angela Rayner has been forced to step down from her role after breaching the ministerial code over her tax arrangements, plunging the Labour government into a fresh crisis. The controversy centres on Rayner’s underpayment of about £40,000 in stamp duty on her seaside flat in Hove, East Sussex.
Prime Minister Keir Starmer brought forward a major cabinet reshuffle in an attempt to restore order, moving Yvette Cooper to foreign secretary, Shabana Mahmood to home secretary, and David Lammy to justice secretary and deputy prime minister. The reshuffle came after a difficult summer recess dominated by Nigel Farage and migration policy.
In her resignation letter, Rayner said she “deeply regrets” not seeking additional specialist tax advice and acknowledged the “significant toll” media pressure had taken on her family. The ethics watchdog Sir Laurie Magnus found she had “acted with integrity” but concluded she had breached the code.
Rayner’s departure removes one of Labour’s most authentic working-class voices at a time when the party is trailing Reform UK in the polls. Farage said her actions “scream of entitlement” and predicted the deputy leadership contest could split the party, potentially leading to a general election in 2027.
The reshuffle saw Pat McFadden move to work and pensions, Liz Kendall to science and technology, Peter Kyle to trade, and Steve Reed take on Rayner’s housing portfolio. Ed Miliband remains as energy secretary, one of the few soft-left cabinet members still in post.
