Angela Rayner, a key figure in Labour Prime Minister Keir Starmer’s left-wing government, has resigned following outrage over a tax scandal.
Rayner was one of the most senior figures in the UK, serving as Deputy Prime Minister and Housing Secretary, while also holding the post of Deputy Leader of the Labour Party and acting as the leading voice of its influential left wing.
Her surprise move today forced Starmer to reshuffle his cabinet.
To head off a potentially fractious leadership battle, Starmer is rumoured to be considering abolishing the position of Labour deputy leader altogether.
The political crisis happened while there is unrest across the country over mass immigration.
Rayner had become the centre of a political storm after having to admit she did not pay a £40,000 (€46,000) tax bill on the purchase of a second home.
Her purchase this year of an £800,000 flat in Hove, near Brighton, ignited controversy because she paid just £30,000 in stamp duty — £40,000 less than she should have had the property been declared a second home.
By removing her name from the deeds of her family home in Greater Manchester, she reportedly sidestepped the higher rate.
After weeks of flatly denying wrongdoing, Rayner on September 3 was forced to refer herself to a parliamentary ethics investigation, finally conceding that she had underpaid stamp duty land tax (SDLT) on the Brighton flat.
That caused widespread outrage, with many asking questions about Rayner’s move, which took away political attention Starmer wanted for the self-declared “phase two” of his premiership, focusing on “delivery, delivery, delivery”.
In an apparent attempt to shift responsibility, Rayner pointed the finger at her lawyers. They have hit back, insisting they relied on details supplied by the politician herself and accusing her team of making them “scapegoats”.
They said they had done “everything correctly and in good faith” and that on tax issue, “it’s something we always refer our clients to an accountant or tax expert for”.
She was investigated by Laurie Magnus, the independent adviser on ministerial ethics, after referring herself when the situation was aired by British media.
Initially, the Labour government stood squarely behind Rayner, with Starmer saying she had gone “over and above” by setting out her family circumstances, while cabinet colleagues urged her to stay on.
But the investigation Magnus undertook gave her no option, as he concluded today that she simply had broken the ministerial code by not getting proper tax advice.
“I consider, however, that her unfortunate failure to settle her SDLT [Stamp Duty Land Tax] liability at the correct level, coupled with the fact that this was established only following intensive public scrutiny, leads me to advise you that, in relation to this matter, she cannot be considered to have met the ‘highest possible standards of proper conduct’ as envisaged by the Code,” Magnus said.
In response, Rayner resigned immediately. She said she was doing so to protect her family.
“I have always taken my responsibilities as deputy prime minister, secretary of state for housing, communities and local government, as well as a member of parliament with the utmost seriousness,” she wrote in her letter of resignation.
“I have long believed that people who serve the British public in government must always observe the highest standards, and while the Independent Adviser has concluded that I acted in good faith and with honesty and integrity throughout, I accept that I did not meet the highest standards in relation to my recent property purchase.
“I deeply regret my decision to not seek additional specialist tax advice given both my position as Housing Secretary and my complex family arrangements. I take full responsibility for this error.”
She added that it was never her intention to pay the wrong amount.
Starmer accepted her resignation, but said he did so “with great sadness”.
“You were right to refer yourself to the Independent Adviser on Ministerial Standards and right to act on his conclusion,” he told her.
The PM went on to praise Rayner for her work and said he was “very sad” to be losing her 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 achievements in politics.”
Her resignation coincided with a party convention of Nigel Farage’s Reform Party, Britain’s leading opposition party according to the latest polls.
This is a government in crisis. pic.twitter.com/8KfqsvKYLC
— Nigel Farage MP (@Nigel_Farage) September 5, 2025
“This government is deep in crisis”, Farage said, who noted its popularity had dropped like a stone. He said Labour did not have the qualities to properly run the country.
He stressed that there would be an internal election within Labour as Rayner left and said the Left of the Labour party would make trouble. He added there could be internal conflict and splits, while the “sectarian” hard-Left former Labour leader Jeremy Corbyn was also trying to form a party.
Kemi Badenoch, leader of the opposition Conservatives, said: “Britain deserves better.” She noted that Starmer had “hesitated” to fire Rayner after news of the situation broke.
An unnamed Labour MP told the Telegraph today that Starmer has “signed his own death warrant” without realising it by letting Angela Rayner go. He said the PM should have stood behind her.
Some have even suggested she was being persecuted for her working-class background.
The broader public in the UK was outraged with the tax scandal and it was widely discussed online, not least because it was the person responsible for housing who had not paid the correct taxes for her house.
An AI-generated rap video mocking Rayner went viral on social media today, gathering hundreds of thousands of views in a short amount of time.
In How Many Homes Can Rayner Buy?, the computerised version of her raps and dances in front of a row of flats wearing a tracksuit and a gold chain, the typical attire associated with the rap music genre. In it, she waves cash and smokes two cigarettes at once.
The mock-up sees “Rayner” sing: “Bought me one house, bought me two; Flip another flat, taxman no clue; £80K saved with a Brighton tan; Dodgin’ more duty than the average man. How many homes, I’ll name ’em all; Big Ange dancin’ in the Commons hall; Taxman cryin’, Rayner smilin’; One rule for me, none for thee!”
New Angela Rayner song. Thank me later for finding this one. 👇👇🤣🤣🤣🤣 pic.twitter.com/05PU9PnjOq
— Patriotic 🇬🇧 Nation 🟣 (@HoodedClaw1974) September 4, 2025
Outside the Brighton property, graffiti declaring Rayner a “tax evader” has been scrawled across the walls.
Labour has faced growing internal dissatisfaction under Starmer, particularly over budget decisions.
Labour MPs including Vicky Foxcroft resigned in June, following Anneliese Dodds, who stepped down in February in protest at cuts to disability benefits and overseas aid, highlighting tensions over the government’s spending priorities.
The party has also been hit by other resignations.
Rushanara Ali, the then-minister for homelessness and democracy, stepped down in August after being accused of hypocrisy for evicting tenants from her property before raising the rent — an action at odds with government housing policy.
She said she left to avoid becoming a “distraction”.
Andrew Gwynne, the then-public health minister, was sacked in February and suspended from the Labour Party after offensive comments surfaced from a private WhatsApp group, including jokes about vulnerable people.
Louise Haigh, the then-transport secretary, admitted that she had previously pleaded guilty to misleading police about a lost work phone, prompting her resignation in late 2024.
And Sue Gray, Starmer’s Downing Street Chief of Staff, left in October last year amid intense scrutiny over her role, her management style and her salary.
The political high tension in the UK coincides with difficulties to field strong governments in France and Germany, while Conservative-led Italy has become something of a bastion of stability in comparison.
Louise Haigh, Transport Secretary in the recently elected Labour Party UK Government, has resigned after admitting she was convicted of fraud 10 years ago. https://t.co/MCMCCXSMxg
— Brussels Signal (@brusselssignal) November 29, 2024
