Britain’s Deputy Prime Minister, Angela Rayner, resigned on Friday after an investigation found she had breached the ministerial code by underpaying property tax, a development that marks a major setback for Prime Minister Keir Starmer’s already embattled Labour government.
Rayner, a prominent figure on the Labour Party’s left, admitted earlier this week to underpaying a property tax surcharge on a flat purchase. She referred herself to the government’s independent ethics adviser following mounting media scrutiny.
In a letter to Starmer, ethics adviser Laurie Magnus concluded that Rayner had failed to “heed the caution” of prior legal advice and therefore had breached the ministerial code.
“I accept that I did not meet the highest standards,” Rayner wrote in her resignation letter. She also stepped down from her roles as Deputy Leader of the Labour Party and Housing Minister. “I deeply regret my decision not to seek additional specialist tax advice and take full responsibility for this error,” she added.
In his response, Starmer said he was “very sad” to lose her from government but affirmed: “You will remain a major figure in our party.”
Rayner’s resignation adds further pressure on the Labour government, which has faced a series of crises since its landslide victory in July 2024, following 14 years in opposition. The administration has already been forced into U-turns on welfare reform and fuel subsidies for the elderly. It is also under fire for failing to curb the arrival of undocumented migrants via small boats, a controversy that has fuelled a surge in support for Nigel Farage’s right-wing Reform UK party.
Labour now trails behind Reform in national opinion polls, although the next general election is not expected before 2029.
Rayner revealed on Wednesday that she had underpaid stamp duty on an £800,000 seaside flat in Hove. She originally claimed the property was her primary residence, thereby qualifying for a lower tax rate. However, she later acknowledged that the claim was incorrect, as she had transferred her share of a previous family home to a trust for her underage son, who has special needs. As her son is under 18, tax rules deemed her to still have an interest in that property, disqualifying her from the lower rate.
The ethics report noted that the rules surrounding the case were “complex” and that Rayner had twice been advised that the lower rate applied. However, that advice came with the caveat that it did not constitute expert tax guidance. Magnus concluded that Rayner’s failure to seek specialised advice meant she had not met “the highest possible standards of proper conduct.”
Rayner, 45, has long been seen as a potential future leader of the Labour Party. A frequent target of Conservative attacks and right-wing media, she is known for her straight-talking style and strong appeal among working-class voters. She left school at 16 with no qualifications after becoming a teenage mother and grew up in one of Stockport’s most deprived housing estates, near Manchester.
AFP
