Angela Rayner, the United Kingdom’s deputy prime minister and housing secretary, resigned on September 5, 2025, following an independent inquiry that found she breached ministerial ethical standards regarding a property purchase. The resignation, which also included her stepping down as deputy leader of the Labour Party, has sent shockwaves through British politics and triggered a sweeping cabinet reshuffle at a critical moment for Prime Minister Keir Starmer’s government.
Rayner’s departure stems from her purchase of an £800,000 flat in Hove, on England’s south coast, earlier in the summer. According to BBC News, Rayner admitted on September 3 that she had not paid enough stamp duty on the property—a tax levied on home purchases in the UK, with higher rates for more expensive or secondary homes. Reports suggested she saved £40,000 by not paying the correct amount, believing the flat was her only property. However, complex trust arrangements for her disabled son meant that, for tax purposes, it should have been considered her second home, triggering the higher tax rate.
After media scrutiny intensified last week, with newspapers such as the Daily Telegraph and Daily Mail raising questions about her tax payments, Rayner’s team initially insisted she had paid the correct amount. But as pressure mounted, Rayner sought advice from a senior lawyer. Upon receiving the final legal opinion, she acknowledged the shortfall and contacted HMRC to arrange payment of the additional tax. She also referred herself for investigation by the prime minister’s independent adviser on ministerial standards, Sir Laurie Magnus.
Sir Laurie’s report, delivered to Prime Minister Keir Starmer on September 5, concluded that while Rayner had “acted with integrity,” she had failed to meet the “highest possible standards of proper conduct.” The report noted that Rayner did seek legal advice at the time of purchase, but did not obtain the specialist tax advice recommended for someone in her position. “The responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately on themselves alone,” Sir Laurie wrote, adding that it was “deeply regrettable” Rayner had not sought the correct tax advice. If she had, it would “likely” have advised her that a higher rate of stamp duty was payable.
In her resignation letter to Starmer, Rayner expressed deep regret for her actions. “I deeply regret my decision to not seek additional specialist tax advice given both my position as housing secretary and my complex family arrangements,” she wrote. “I take full responsibility for this error. It was never my intention to do anything other than pay the right amount.” Rayner’s admission that she had not met the highest standards was echoed in her letter: “I accept I did not meet the highest standards when purchasing my property.”
The fallout was immediate and significant. Rayner’s resignation not only left a gap in the cabinet but also triggered a wider reshuffle. According to The Conversation, David Lammy was appointed deputy prime minister and justice secretary, Shabana Mahmood moved to the Home Office, Yvette Cooper became foreign secretary, and Steve Reed took on the key role of housing secretary, now responsible for delivering the government’s ambitious pledge to build 1.5 million homes by 2029. Other ministers, such as Liz Kendall, were also moved in the reshuffle, which was originally intended to mark the start of the government’s “phase two.”
Rayner’s resignation as deputy leader of the Labour Party—a role she was directly elected to by party members—was not required by the Magnus report, which related solely to her conduct as a minister. Nevertheless, she stepped down from this post to avoid becoming a distraction for the government and the party. The Labour National Executive Committee is now expected to set a timeline for a new deputy leadership election, with the upcoming party conference (September 28 to October 1) likely to showcase potential candidates. Names such as Emily Thornberry, Rosena Allin-Khan, and Anneliese Dodds are being discussed as possible contenders, with the contest expected to become a focal point for party members and a test of Starmer’s leadership.
Prime Minister Starmer responded to Rayner’s resignation with a handwritten letter, stating, “Although I believe you have reached the right decision, it is a decision which I know is very painful for you. You have given your all to making the Labour government a success and you have been a central part of our plan to make Britain fairer for working families. On a personal note, I am very sad to be losing you from the government. You have been a trusted colleague and a true friend for many years. I have nothing but admiration for you and huge respect for your achievement in politics.” Starmer concluded that Rayner would remain “a major figure” in the Labour Party.
However, the resignation is widely seen as politically damaging for Starmer. As reported by The Conversation, Rayner was a popular figure with the left of the party and served as a key bridge between Starmer and the wider Labour membership. Her departure comes amid recent rebellions among Labour MPs and declining poll ratings, making Starmer’s position more precarious. Some analysts have suggested that the deputy leadership contest could become a platform for MPs and members to voice discontent with Starmer’s leadership, potentially challenging his authority at a sensitive time.
Rayner’s resignation also plays into the hands of political opponents. Conservative leader Kemi Badenoch was quick to criticize Starmer, stating, “Angela Rayner is finally gone. But it’s only because of Keir Starmer’s weakness that she wasn’t sacked three days ago.” Meanwhile, at the Reform UK party conference in Birmingham, party leader Nigel Farage seized on the scandal, telling delegates, “You simply can’t get away from being the housing secretary and avoiding £40,000 of stamp duty.” The timing of the resignation, coinciding with the Reform UK conference, has provided ammunition for those seeking to argue that Labour is no different from previous governments tainted by scandal.
Rayner’s political journey has been remarkable. First elected as MP for Ashton-under-Lyne a decade ago, she quickly rose through the Labour ranks, joining the frontbenches in 2015 and assuming government roles in July 2024 following Labour’s general election victory. She was a key architect of the government’s employment rights bill, which is now in its final stages and expected to become law soon. Her working-class background and northern roots made her a symbolic figure within the Labour Party, and her departure—along with that of Lucy Powell, another senior northern MP—has raised concerns about the government’s connection to its traditional base.
In the immediate aftermath, Rayner is expected to take a step back from frontline politics but will remain an active MP. Freed from the constraints of collective ministerial responsibility, she could become a vocal critic of the government and Starmer, especially with nearly four years left in Labour’s term. Whether she chooses to bide her time or re-enter government in the future remains to be seen.
The saga has left Labour facing tough questions about its promise to clean up politics and deliver a government free from scandal. As the party prepares for its annual conference and the next phase of government, the challenge for Starmer is to restore stability and convince the public that Labour can deliver on its pledges. The coming weeks will be a crucial test for both the prime minister and his party.
