Deputy Prime Minister Rayner resigns in the midst of a controversial situation

Angela Rayner Resigns as Deputy Leader of the Labour Party

In a surprising turn of events, Angela Rayner has resigned from her positions as Deputy Prime Minister, Housing Secretary, and Deputy Leader of the Labour Party. The resignation, which occurred following an ethics investigation into Rayner's tax affairs, has sparked both criticism and support.

The controversy centers around Rayner's purchase of an £800,000 flat in Hove in May 2025. Rayner treated the property as her primary residence for tax purposes, which resulted in an underpayment of approximately £40,000 in stamp duty. An independent ethics adviser, Sir Laurie Magnus, concluded that Rayner had breached the ministerial code by failing to seek specialist tax guidance.

In her resignation letter to Prime Minister Keir Starmer, Rayner acknowledged her error and expressed deep regret. She stated that she deeply regretted not seeking additional specialist tax advice. Prime Minister Starmer responded with a handwritten note praising Rayner as a trusted colleague and friend.

Rayner's resignation leaves a vacancy in the Housing Secretary role and sets the stage for a contest for the Deputy Leader position. The contest is expected to intensify divisions within the Labour Party between its left-wing and centrist factions. The choice of the new Deputy Leader will be closely watched for its potential influence on debates around economic policy, particularly issues of wealth taxation and welfare provision.

Rayner remains a respected figure within Labour, particularly among the party's left-wing base. Her departure occurs at a politically sensitive moment for Prime Minister Starmer, as he seeks to maintain public confidence ahead of future elections. An upcoming cabinet reshuffle is expected to fill key positions and restore stability to the government.

The Labour Party now faces the task of selecting a new Deputy Leader. Keir Starmer proposed David Lammy as Angela Rayner's successor. The underpayment arose from relying on legal advice that incorrectly assumed she was eligible for a reduced tax rate. The scrutiny faced by senior figures in government and the challenges of maintaining ministerial compliance in complex financial matters are underscored by Rayner's resignation.