London:
UK Deputy Prime Minister Angela Rayner resigned on Friday, 5 September 2025, after an inquiry concluded she had underpaid stamp duty on a property purchase, dealing a significant blow to Prime Minister Keir Starmer’s government.
Tax controversy details
The investigation found that Rayner underpaid nearly £40,000 in stamp duty when purchasing a seaside flat in Hove. She had declared the flat as her main residence despite also maintaining another home in her constituency, which was her primary address for tax purposes.
Rayner explained that the decision was based on legal advice she received and her complex personal circumstances, including care arrangements for her disabled son. She voluntarily referred herself for investigation by the independent adviser on ministerial standards, who determined that she had breached the ministerial code, even though the act was not deliberate.
Resignation and aftermath
In her resignation letter, Rayner expressed regret and took full responsibility, stating she should have sought more specialist advice. She also stepped down as Deputy Leader of the Labour Party and Housing Secretary.
Prime Minister Starmer described her departure as a personal loss, calling Rayner a trusted colleague and a close friend. Her resignation followed other cabinet changes, including the departure of senior ministers Lucy Powell and Poppy Gustafsson, marking one of the most challenging reshuffles of Starmer’s tenure.
Political impact
Rayner’s exit comes at a sensitive moment for the Labour government, which is preparing to unveil new tax proposals. Her resignation has handed the opposition an opportunity to criticise Labour’s handling of integrity and accountability in public office.
Reform UK leader Nigel Farage called her resignation proof of Labour’s “hypocrisy on tax,” while Conservative leader Kemi Badenoch accused the government of being in disarray.
Seen as one of the most popular figures within the Labour Party, Rayner was considered a potential successor to Starmer. Her resignation has not only weakened the government’s standing but also raised questions about Labour’s internal stability and future leadership.
Conclusion
Angela Rayner’s departure highlights the political costs of misjudgements in financial and ethical matters. For Starmer, the loss of his deputy marks a major setback at a time when the government faces growing scrutiny and the need to maintain public trust.