In a dramatic turn at the heart of British politics, Prime Minister Keir Starmer has executed a sweeping Cabinet reshuffle, marking one of the most significant overhauls of his government since Labour’s landslide victory in July 2024. The catalyst? The abrupt resignation of Deputy Prime Minister Angela Rayner, who stepped down amid a tax controversy that has gripped Westminster and sent ripples through the Labour Party’s ranks.
Rayner’s departure on September 5, 2025, set off a chain reaction that has not only shifted the political landscape but has also led to a historic moment for gender representation in the UK’s highest offices. For the first time, the three most senior positions below the Prime Minister—Home Secretary, Foreign Secretary, and Chancellor of the Exchequer—are all now held by women.
The saga began with the revelation that Rayner failed to pay the correct stamp duty on her recent £800,000 flat purchase in Hove, a seaside town on England’s southern coast. According to The Associated Press, an independent inquiry found she had saved approximately £40,000 (nearly $54,000) by not paying the levy in full. Though the inquiry, led by ethics adviser Laurie Magnus, concluded Rayner had acted in good faith and with integrity, it found she had breached the ministerial code by not seeking specialist tax advice. The report’s findings left Rayner with little choice but to resign.
In her resignation letter, Rayner wrote, “I take full responsibility for this error. I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount.” She also cited the toll the ongoing media pressure had taken on her family, referencing her complex living arrangements following a 2023 divorce and her son’s lifelong disabilities as contributing factors to the oversight.
Prime Minister Starmer responded with regret, stating, “I have nothing but admiration for you and huge respect for your achievements in politics,” and described her decision to step down as the right one. The handwritten note, as reported by The Associated Press, ended “with very best wishes and with real sadness.”
Rayner’s resignation was more than a personal setback—it was a blow to the Labour Party’s public image and internal stability. Known for her plain-speaking style and ability to connect with voters who often felt distant from Starmer’s lawyerly approach, Rayner had been widely tipped as a potential future party leader. Her departure also meant relinquishing her role as deputy leader of the Labour Party, necessitating a new selection process for her replacement.
With the government already struggling in the polls—trailing behind Reform UK and facing criticism for missteps on welfare reform and immigration—Starmer saw an opportunity to reassert control. According to BBC News, the reshuffle was described by insiders as “wide-ranging” and amounted to “the action of a prime minister confronted by an almighty mess—and hurriedly seeking to seize that moment for his own and his government’s ends.”
The reshuffle unfolded throughout the afternoon, with appointments announced in a steady stream. David Lammy, previously Foreign Secretary, was named the new Deputy Prime Minister and also took on the justice portfolio. Yvette Cooper, who had served as Home Secretary, was moved to the Foreign Office—a role that places her on the front lines of Britain’s responses to global crises, including the war in Ukraine and ongoing tensions in the Middle East.
Shabana Mahmood, praised for her steady hand as Justice Secretary, was promoted to Home Secretary, making her the most senior Muslim woman in government. As The Independent highlighted, Mahmood now faces the daunting tasks of addressing record-high small boat crossings and navigating the thorny issue of asylum hotels. Her background—being the daughter of immigrants of Kashmiri origin—brings a unique perspective to the Home Office, particularly as immigration policy remains a flashpoint in British politics.
Rachel Reeves remained in her post as Chancellor of the Exchequer, a move Downing Street made clear early on to calm financial markets. Reeves’ stewardship of the economy is seen as central to Labour’s hopes of reversing its polling woes, especially with a crucial fiscal statement on the horizon.
The reshuffle also saw significant changes elsewhere. Lucy Powell was sacked as Leader of the House of Commons, with critics claiming she had underperformed and mishandled sensitive issues. Scottish Secretary Ian Murray was replaced, and Douglas Alexander, a veteran of the Blair and Brown governments, returned to the Cabinet as Secretary of State for Scotland. Liz Kendall moved from Work and Pensions to become Science, Innovation and Technology Secretary, while Peter Kyle was promoted from overseeing science and tech to Business Secretary—a nod to his growing reputation within the party.
Steve Reed, formerly Environment Secretary, took over Rayner’s housing brief, bringing with him a record of standing up to water companies and championing local government reform. Pat McFadden was charged with leading a new “super ministry” that combines Work and Pensions with part of the Education portfolio—a move aimed at cutting welfare costs and boosting economic growth.
Jonathan Reynolds moved from Business Secretary to Chief Whip, responsible for maintaining party discipline in Parliament. Sir Alan Campbell, his predecessor, became Lord President of the Council and Leader of the House of Commons. Meanwhile, Darren Jones, who had made headlines as Chief Secretary to the Prime Minister earlier in the month, retained his role and took on the historic position of Chancellor of the Duchy of Lancaster, now serving as a key adviser to Starmer.
For Rayner, the fallout was deeply personal. She will remain a backbench lawmaker, but her political future is uncertain. Her previous criticism of tax avoidance by Conservative politicians came back to haunt her, with Tory leader Kemi Badenoch accusing her of hypocrisy. “The truth is simple, she dodged tax,” Badenoch said in a video statement. “She lied about it.”
Despite the turmoil, the reshuffle has produced a Cabinet that is, in many ways, historic. For the first time, women occupy the three most senior offices below the Prime Minister, a milestone that has not gone unnoticed. Yet, the challenges facing Starmer’s government—sliding support, internal dissent, and a restless electorate—remain formidable.
As the dust settles, all eyes are on Starmer and his new team to see whether this bold reshuffle can steady the ship and restore public confidence. The coming months will test not just the mettle of the newly appointed ministers but the very direction of Britain’s government at a time of uncertainty and change.
