What happened?
Angela Rayner resigned on September 5 as the UK’s Deputy Prime Minister and Housing Secretary after admitting she underpaid stamp duty on her £800,000 Hove flat. She also stepped down as Deputy Labour Leader, opening the door for a new deputy leadership election among party members.
Why did she resign?
Rayner acknowledged that she failed to seek specialist tax advice when purchasing the property, which should have been classed as a second home due to complex family arrangements. That error left her owing an additional £40,000 in stamp duty. While the prime minister’s ethics adviser said Rayner had “acted with integrity,” he concluded that she breached the ministerial code.
Rayner wrote to Prime Minister Keir Starmer accepting full responsibility. She said: “I deeply regret my decision to not seek additional specialist tax advice given both my position as housing secretary and my complex family arrangements. It was never my intention to do anything other than pay the right amount.”
Cabinet reshuffle begins
Her departure sparked a sweeping cabinet reshuffle. Former Foreign Secretary David Lammy was promoted to Deputy Prime Minister and also takes on the Justice Secretary role. Yvette Cooper moves to Foreign Secretary, while Shabana Mahmood becomes Home Secretary.
Steve Reed is the new Housing Secretary, tasked with delivering the government’s pledge to build 1.5 million homes by 2029. Other moves include Liz Kendall shifting from Work and Pensions to the Department for Science, Innovation and Technology.
Political fallout
The resignation is a major blow for Starmer, who had just begun reshaping his Downing Street team to steady his leadership. A deputy leadership election is expected soon, a process that could become a rallying point for critics of Starmer within the Labour Party.
In his reply, Starmer praised Rayner’s contribution, calling her a “trusted colleague and true friend” and insisting she remains a “major figure” in Labour politics.
Conservative leader Kemi Badenoch reacted sharply, saying: “Angela Rayner is finally gone. But it’s only because of Keir Starmer’s weakness that she wasn’t sacked three days ago.”
Rayner, who first entered Parliament in 2015 and rose to one of the most powerful positions in government after Labour’s 2024 election win, remains popular with many backbenchers despite her resignation.
