Angela Rayner’s Resignation Rocks Labour Government Amid Tax Scandal

Breaking News: Deputy PM Steps Down

Britain’s Deputy Prime Minister Angela Rayner has resigned following a scandal over her failure to pay the correct amount of property tax, adding to the woes of the country’s struggling center-left government.

The controversy centres on Rayner’s purchase of an £800,000 flat in Hove in May 2025. She treated the property as her primary residence for tax purposes, which resulted in an underpayment of approximately £40,000 in stamp duty.

The Ethics Investigation

Rayner explained that the miscalculation arose from relying on legal advice that incorrectly assumed she was eligible for a reduced tax rate, despite her property being connected to complex family arrangements and a trust linked to her son’s disability. An independent ethics adviser, Sir Laurie Magnus, concluded that Rayner had breached the ministerial code by failing to seek specialist tax guidance.

Impact on Labour Government

The resignation comes at a challenging time for Prime Minister Keir Starmer, who is already facing significant challenges. The British economy is barely growing, critics are mounting from both left and right, and his popularity has declined to historic levels just a year after a landslide victory.

In response to the resignation, a major cabinet reshuffle has been implemented. David Lammy has been appointed as the new deputy prime minister and justice secretary. Yvette Cooper has moved from the interior ministry to replace Lammy as foreign secretary, while Shabana Mahmood takes over as home secretary.

Rayner’s Legacy and Future Implications

Rayner’s departure represents the loss of one of Labour’s most talented politicians, known for her forthright style and working-class roots. She grew up poor on the outskirts of Manchester, became a mother at 16, and before entering politics, trained as a carer for older people and worked as a trade union representative.

Her departure adds to a string of high-profile resignations from the government and raises questions about accountability within Starmer’s leadership. The Labour Party now faces the task of selecting a new Deputy Leader, a contest expected to intensify divisions within the party between its left-wing and centrist factions. The choice will be closely watched for its potential influence on debates around economic policy, particularly issues of wealth taxation and welfare provision.

Despite securing a landslide election victory in July 2024, Labour is now facing a rising challenge from the upstart anti-immigration Reform UK party, which currently leads national opinion polls. This development marks a crucial moment in British politics, with potential long-term implications for the Labour government’s stability and future direction.