Angela Rayner has resigned from the government after the prime minister’s ethics adviser found she broke the ministerial code by underpaying stamp duty on her £800,000 seaside flat.
In a major setback for Keir Starmer, Sir Laurie Magnus concluded that while Rayner had “acted with integrity and with a dedicated and exemplary commitment to public service,” she had still violated the code regarding her tax affairs.
Her departure is a serious blow to the prime minister, who had initially supported her firmly. His authority has been significantly weakened as a result. Rayner has stepped down as deputy prime minister, housing secretary, and deputy leader of the Labour party.
Downing Street sources confirmed the prime minister will now carry out a reshuffle, though Rachel Reeves will remain as chancellor.
In her resignation letter, Rayner expressed deep regret for not seeking “additional specialist tax advice” when buying the Hove property. She also cited the strain the media attention was placing on her family, despite describing her rise from “a teenage mum from a council estate in Stockport” to the top levels of government as “the honour of my life.”
In his handwritten reply, Starmer assured Rayner she would “remain a major figure in our party” and would “continue to fight for the causes you care so passionately about.”
Rayner’s exit leaves the Labour government without one of its most genuine and influential working-class voices at a time when the party is struggling to reconnect with its traditional voters and is trailing behind Reform UK in the polls.
Rayner had referred herself to the ethics adviser after confirming she owed more stamp duty—potentially up to £40,000—because she had incorrectly paid the lower rate on the Hove flat. She had classified it as her only home, despite spending much of her time with her children at the family house in Ashton-under-Lyne, Greater Manchester.
Months before buying the Hove flat, Rayner had transferred her share of the Ashton house into a trust set up in 2020 to provide for one of her sons, who has lifelong disabilities resulting from a premature birth and a “deeply personal and distressing incident.” Because her son is the trust’s beneficiary and is under 18, Rayner was still considered to have a financial interest in the property for tax purposes.
When she purchased the Hove flat, she declared she had no interest in any other property, allowing her to pay the lower stamp duty rate of around £30,000 instead of the estimated £70,000 higher rate.
Although Rayner claimed she had received written tax advice stating she was eligible for the lower rate, her conveyancer stated she had not provided any such documentation.
On Friday, Magnus revealed that two trust experts had also advised the then deputy prime minister to seek full legal advice before the purchase, which she did not do.
In his letter, Magnus wrote: “Given the complexity of her family circumstances, her senior government role, and the serious consequences of an error, it is deeply regrettable that specific tax advice was not sought.” He added that it was “highly unfortunate” she underpaid tax while serving as housing secretary.
The situation was made even more awkward for the government by the fact that…It is believed that Reeves is considering higher property taxes in the November budget, partly due to prompting from Rayner herself. Earlier this year, Rayner sent a memo to the chancellor suggesting an increase in stamp duty on commercial properties. She warned that the current 5% rate was encouraging individuals to purchase properties through shell companies.
Nigel Farage, the leader of Reform UK, claimed that Rayner’s resignation “screams entitlement.” He added, “It shows that despite all the promises of a new, different kind of politics, this government is just as bad—if not worse—than the previous one.”
Conservative leader Kemi Badenoch stated that Rayner’s position had been “untenable for days.” In a video posted on X, she remarked, “It says everything about Keir Starmer’s weak leadership that he had to wait for a report before taking action. The truth is simple: she dodged tax, she lied about it, and her position was untenable for days.”
Frequently Asked Questions
Of course Here is a list of FAQs about Angela Rayner stepping down written in a natural tone with clear direct answers
Basic Questions
1 Who is Angela Rayner
Angela Rayner is a senior British politician She is the Deputy Leader of the Labour Party and was the Shadow Deputy Prime Minister and Shadow Levelling Up Secretary
2 What is the stamp duty controversy about
The controversy is about whether she correctly paid capital gains tax and stamp duty on the sale of a house she owned in 2015 Critics questioned if it was her main home or a buytolet investment property
3 So did she actually step down
No she did not step down from her roles in the Labour Party She temporarily stepped aside from her specific Shadow Levelling Up Secretary duties while the police conducted their investigation She remained Deputy Leader
4 Why would she step aside if she hasnt been found guilty
In politics it is a common practice for ministers to temporarily step back from their specific departmental duties during an official police investigation to avoid distractions and maintain government stability even if they maintain their innocence
5 What are stamp duty and capital gains tax
Stamp Duty A tax you pay when you buy a property over a certain price
Capital Gains Tax A tax on the profit you make when you sell an asset that has increased in value
Advanced Detailed Questions
6 What was the specific allegation against her
The main allegation was that her former council house in Vicarage Road Stockport was officially designated as her main residence meaning she should have been living there Critics alleged she was actually living at her husbands house nearby which would make Vicarage Road an investment property Selling an investment property triggers capital gains tax and the buyer must pay stamp duty
7 What did the police investigation conclude
Greater Manchester Police investigated and concluded that no further police action would be taken They found no evidence of any legal breach effectively clearing her of any criminal wrongdoing
8 Has she returned to her full duties now
Yes Following the conclusion of the police investigation she was fully reinstated to
