Angela Rayner has resigned from her senior roles in government and the Labour Party after admitting she underpaid stamp duty on a property purchase in Hove, East Sussex.
The decision marks one of the most dramatic moments in Labour’s recent history, with significant political implications for both Rayner and party leader Sir Keir Starmer.
Property Controversy at the Heart of the Row
The controversy centres on a flat Rayner bought for around £800,000 while she was serving in opposition.
She initially believed she had paid the correct amount of tax after seeking legal advice, which suggested only the standard rate of stamp duty was due.
However, subsequent scrutiny revealed that the purchase should have been treated as a second home, which carries a higher rate of tax. Under pressure from media reports and political opponents, Rayner sought further expert counsel earlier this week. That advice confirmed she had underpaid.
Findings of the Ethics Report
The Prime Minister’s ethics adviser investigated the matter and concluded that Rayner had breached the ministerial code by failing to ensure her tax affairs were correct. The report also said she “did not heed the caution” contained in her initial legal advice and that her decision not to seek clarification fell short of the standards expected of ministers.
Although the report acknowledged Rayner had since paid the outstanding sum, it highlighted concerns over her judgment and handling of the situation.
Rayner Accepts ‘Full Responsibility’
In her resignation letter, Rayner admitted she should have acted differently:
“I take full responsibility for not seeking additional tax advice when I should have. This was an error of judgment, and I deeply regret the impact it has had on the government and the Labour Party.”
Rayner also acknowledged the controversy had become a distraction, adding: “I cannot allow this issue to undermine the work of the government or the credibility of our movement as we prepare for the next general election.”
Starmer Pays Tribute
Labour leader Sir Keir Starmer responded with a personal letter expressing sadness at her decision to step down.
“I am very sad that your time in government has come to an end,” Starmer wrote. “You have been a vital part of our leadership team, a voice for working people, and you remain a major figure in the Labour Party.”
He emphasised that while Rayner’s resignation was a personal loss, she would continue to shape Labour’s future direction.
The Rise of Angela Rayner
Rayner’s resignation brings a sudden halt to the career of one of Labour’s most high-profile politicians. Born in Stockport and raised on a council estate, she trained as a care worker before entering politics.
She became MP for Ashton-under-Lyne in 2015 and quickly rose through the ranks, gaining a reputation for plain speaking and connecting with working-class voters.
As deputy leader since 2020, she played a central role in repositioning Labour as an election-ready party. Her appointment as deputy prime minister after Labour’s general election victory cemented her status as Starmer’s most important ally.
Political Fallout and Future Implications
Rayner’s departure raises questions about Labour’s stability at a critical time. The party has enjoyed strong poll leads, but the loss of such a senior figure may dent its image of unity.
Commentators suggest her resignation could embolden Conservative critics, who have accused Labour of hypocrisy over tax and transparency. It may also spark debates within the party over whether Labour’s leadership team can maintain cohesion without Rayner’s influence.
Chief political correspondent Henry Zeffman described the situation as “devastating for Rayner — with pretty devastating implications for the PM too”.
Reactions Across Westminster
Opposition MPs have seized on the resignation. A Conservative spokesperson said: “Angela Rayner’s departure shows Labour cannot claim the moral high ground on ethics and standards. If the deputy prime minister cannot follow the rules, how can voters trust the rest of them?”
Meanwhile, some Labour MPs expressed frustration that the issue was allowed to spiral. “This could have been resolved more quickly,” one backbencher told reporters. “It’s a huge loss for the party.”
Trade unions, however, praised Rayner’s contributions. The UNISON general secretary said: “Angela has always been a champion for working people, and her voice will still be essential in the battles ahead.”
What Happens Next?
A reshuffle is now underway to replace Rayner in both government and the party hierarchy. Possible successors for deputy prime minister include senior figures from the Treasury and the Foreign Office, though no formal announcements have been made.
Labour sources say the process of electing a new deputy leader will begin shortly, as that role is directly chosen by party members.
A Personal and Political Setback
For Rayner, the resignation represents a serious personal setback. Yet many within Labour believe she could return to frontline politics in the future, given her popularity with grassroots members and her track record as a campaigner.
For Starmer, the challenge is immediate. He must reassure voters that Labour remains focused on stability and competence, while also managing the fallout of losing his most senior deputy.
