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Politics
09 September 2025

Labour Faces Crucial Test After Angela Rayner Resignation

The departure of Rayner triggers a fierce contest for Labour’s deputy leadership and reignites debate over government housing reforms and party direction.

The resignation of Angela Rayner from her dual roles as Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government has sent shockwaves through both Westminster and the Labour Party, sparking a heated contest to fill her position as Labour's deputy leader and raising urgent questions about the direction of government housing policy. Rayner's departure, confirmed last week, followed her admission that she had underpaid Stamp Duty on a property purchase near Brighton—an error she attributed to having received incorrect advice. According to BBC, Rayner acknowledged her mistake in an interview and stepped down after being found in breach of the ministerial code for not seeking expert tax advice.

Her resignation has left the government and Labour Party in a state of flux. Within days, David Lammy was appointed Deputy Prime Minister, while Steve Reed took over as Housing Secretary. But Rayner's position as Labour's deputy leader—a role directly elected by party members—remains vacant, and the contest to fill it is shaping up to be a defining moment for the party's future. As reported by Sky News, the Labour National Executive Committee (NEC) quickly established the rules and timetable for the deputy leadership race, with nominations opening on 9 September and the winner set to be announced on 25 October.

The process to select Rayner's successor is rigorous and multi-staged. First, candidates must secure the backing of at least 80 Labour MPs—20% of the parliamentary party—by 11 September. Next, they need nominations from at least 5% of Constituency Labour Parties (CLPs) or three affiliated groups, two of which must be trade unions, by 27 September. Only then can they advance to the membership vote, which opens on 8 October and closes on 23 October. The winner will be revealed two days later, but, as Downing Street has clarified, the new deputy leader is not expected to become Deputy Prime Minister or necessarily receive a government post.

The contest is already stirring debate within Labour ranks. As the BBC notes, some see the process as a "stitch up" designed to marginalize the party's left wing. Richard Burgon, a left-wing MP, lamented, "despite the stitch up, Labour members deserve a Left candidate on the ballot." Others in the party, including longstanding MPs, have questioned the very necessity of the deputy leadership post, arguing that it only fuels factional infighting. One MP texted, "We should take the opportunity to abolish the post altogether. Its existence only feeds factional infighting."

Meanwhile, the government’s housing agenda faces renewed scrutiny. Senior industry voices argue that Rayner’s resignation exposes deeper problems in housing policy. Greg Tsuman, managing director for lettings at Martyn Gerrard Estate Agents, told EstateAgentTODAY, "Now we’ve lost both the Homelessness Minister and the Deputy Prime Minister and Housing Secretary amid housing-related scandals, and the message couldn’t be clearer: the Government must get its housing policy in order—or risk running out of ministers to resign before they manage to fix the housing market." Tsuman criticized politicians for "pushing simplistic narratives that demonise landlords for the affordability crisis in the private rented sector," insisting that legislative and tax pressures on landlords are making rents less affordable for tenants. He called for "streamlined regulations, lower tax burdens, and stability" to make renting fairer and more affordable.

Colin Brown, head of planning and development at Carter Jonas, emphasized the need for continuity in government planning reforms. He told EstateAgentTODAY, "The industry will want to know that the changes the Government has made to the planning system will remain the focus for the incoming Secretary of State, and that there will be no rowing back." Brown highlighted the significance of the revised National Planning Policy Framework (NPPF), published in December 2024, and the introduction of the Planning and Infrastructure Bill as "important moments, pointing to a clear change in direction to build the homes the country needs." He stressed the necessity of supporting new housing demand and better resourcing local planning authorities, as well as addressing infrastructure provision on a regional and national level to avoid unnecessary project delays.

Rayner’s legacy is hotly debated. Bella Sankey, Labour Leader of Brighton and Hove City Council, expressed deep sadness at Rayner’s resignation, describing her as "a titan of British politics and one of the most dedicated public servants I have had the privilege of working with." Sankey praised Rayner’s "integrity and exemplary commitment to public service," citing the £39 billion investment in social and affordable homes, the renters’ rights bill, and a significant minimum wage increase as hallmarks of her tenure. She also noted Rayner's personal journey from "teenage mum on a council estate to the first Labour Deputy Prime Minister" as a source of inspiration for many, especially women.

Sankey also condemned the acts of vandalism and misogynistic graffiti targeting Rayner in Brighton, pledging that "intimidation and hatred will not be tolerated in our City of Sanctuary." Police are currently investigating these incidents as criminal damage. The council, meanwhile, has responded to housing concerns by announcing the deployment of eight new Neighbourhood Officers across Brighton and Hove’s four housing areas. These officers are tasked with supporting residents, enforcing fire safety measures—such as Personal Emergency Evacuation Plans (PEEPS) for those in high-rise blocks—and addressing tenancy issues from repairs and rubbish to noise complaints and support for vulnerable residents.

As the Labour Party gears up for its annual conference and the deputy leadership contest, the outcome is expected to signal the party’s future direction. Will the new deputy represent the party’s left, right, or a centrist compromise? As the BBC observed, the contest coincides with a government reshuffle that some interpret as a "Rightwards shift," leaving the party’s left and soft left anxious about their representation. Education Secretary Bridget Phillipson, a favorite of the leadership, has already entered the race, while others such as Emily Thornberry and Lucy Powell are considering runs from outside government, potentially offering a more critical perspective on party policy.

Whoever emerges victorious, the challenge will be formidable. The new deputy leader will inherit a party wrestling with internal divisions, public scrutiny, and the urgent need to deliver on promises of housing reform and social justice. For now, the Labour Party’s eyes—and those of the country—are firmly fixed on the outcome of this pivotal contest and the future of government housing policy.

The coming weeks will reveal not just a new face in Labour’s leadership but potentially a new direction for the party and the government’s approach to one of Britain’s most pressing issues: the housing crisis.