Angela Rayner has resigned as deputy prime minister, housing secretary, and deputy Labour leader after admitting she failed to pay the correct amount of tax on her £800,000 flat in Hove.
Her departure comes after the prime minister’s ethics adviser, Sir Laurie Magnus, concluded she had breached the ministerial code, despite acting “with integrity.” He said Rayner did seek legal advice during the purchase but failed to obtain specialist tax guidance, as recommended.
In her resignation letter, Rayner said she accepted she “did not meet the highest standards,” adding: “I deeply regret my decision not to seek additional specialist advice given my role as housing secretary and my complex family arrangements. I take full responsibility for this error. It was never my intention to do anything other than pay the right amount.”
The controversy stems from her purchase of the flat in 2020. While Rayner believed it was her sole residence, arrangements involving a trust for her disabled son meant the property should have been treated as a second home, requiring an extra £40,000 in stamp duty. She has since contacted HMRC to pay the tax and may face a fine of £12,000 for what has been classified as a “careless” error.
Her resignation triggers a deputy leadership election within the Labour Party, expected to create a political headache for Sir Keir Starmer. A wider cabinet reshuffle has already begun, with Lucy Powell and Ian Murray leaving their posts.
In a handwritten reply, Sir Keir praised Rayner’s service: “You have given your all to making the Labour government a success. You have been a trusted colleague and a true friend. Although this decision is painful, I know you will remain a major figure in our party.”
Conservative leader Kemi Badenoch, however, said Rayner’s exit exposed “Keir Starmer’s weakness,” claiming she should have been sacked days earlier.
Rayner, who has represented Ashton-under-Lyne since 2015, was a central figure in Labour’s election victory last year and held responsibility for delivering one of the party’s flagship pledges: building 1.5 million homes. Her departure leaves a significant gap at the top of government.
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