Angela Rayner has quit as Deputy Prime Minister, Housing Secretary, and Labour’s Deputy Leader following a ministerial code breach over unpaid tax.
Her resignation triggers a political storm and urgent Cabinet reshuffle for Keir Starmer.
Angela Rayner has stepped down as the United Kingdom’s Deputy Prime Minister after an ethics probe found she breached the ministerial code over unpaid tax linked to her £800,000 Hove flat. Her resignation also covers her roles as Housing Secretary and Deputy Leader of the Labour Party, setting off a major reshuffle in Prime Minister Sir Keir Starmer’s Cabinet.
In her resignation letter, Rayner admitted she had failed to seek “specialist tax advice” despite her ministerial responsibilities and complicated family circumstances. “I take full responsibility for this error. It was never my intention to do anything other than pay the correct amount,” she wrote.
The controversy began when it emerged she avoided a £40,000 stamp duty surcharge by declaring her Hove property as her primary residence. Further reports revealed she used £160,000 from a trust set up for her disabled son, awarded as NHS compensation in 2008, to help finance the purchase.
Rayner initially stayed silent before breaking down in a Sky News interview, acknowledging that she had misunderstood the rules. “I made a mistake based on the advice I received at the time. People make mistakes, but I always tried to do the right thing,” she said. Pressed further, she admitted the allegations over unpaid duty were accurate.
The fallout has been fierce. Graffiti labelling her a “tax evader” appeared near her Hove home, while critics accused her of hypocrisy given her history of attacking Conservatives over tax avoidance. Former Prime Minister Liz Truss branded her a “first-class hypocrite,” and Tory leader Kemi Badenoch accused Starmer of lacking “backbone” for supporting her until the last moment.
Although Rayner’s lawyers argued she was the victim of poor professional advice, confirmation that she paid only £30,000 in duty instead of £70,000 proved politically devastating. The row has also drawn attention to her property portfolio, with critics dubbing her “Three Pads Rayner” over her official Admiralty House residence in London, her Ashton-under-Lyne constituency property, and the Hove flat. She defended the arrangement, saying the Manchester home in trust for her son remained her true family base.
Starmer had initially stood by his deputy, telling MPs he was “very proud to sit alongside” her and describing her decision to refer herself to the government’s ethics adviser as the right step. But her resignation, confirmed on Thursday, leaves Labour facing a fresh leadership contest for Deputy Leader.
Chancellor Rachel Reeves remains in post, but Starmer is expected to announce sweeping changes to his Cabinet to restore public confidence.
The scandal comes amid growing turbulence for Labour in government. Shadow Housing Secretary James Cleverly said: “Angela Rayner’s endless excuses don’t add up. Either she failed to take proper advice or she has not been honest. This has gone too far.”
