Angela Rayner resigns as UK Deputy PM after tax breach

 Britain’s Deputy Prime Minister, Angela Rayner, resigned on Friday after an investigation found she breached the ministerial code by underpaying property tax.

The development marks a major setback for Prime Minister Keir Starmer’s Labour government, which has already faced a string of political challenges.

Rayner, a key figure on Labour’s left, admitted earlier this week that she failed to fully pay a surcharge on the purchase of a flat. She referred herself to the government’s independent ethics adviser, whose findings ultimately prompted her resignation.

In a letter to Starmer, ethics chief Laurie Magnus wrote that Rayner had failed to “heed the caution” of legal advice, concluding that the ministerial code had been breached. In her resignation letter, Rayner acknowledged: “I accept that I did not meet the highest standards… I deeply regret my decision not to seek additional specialist tax advice and take full responsibility for this error.” She confirmed she would step down as both Deputy Prime Minister and Housing Minister, as well as Labour’s deputy leader.

Starmer, in his response, said he was “very sad” to lose her from government but stressed that she would “remain a major figure in our party.”

The resignation adds to Labour’s growing woes since its historic victory in July 2024, ending 14 years of Conservative rule. The government has already been forced into U-turns on welfare reforms and energy subsidies for the elderly, while its inability to curb migrant crossings has fueled support for Nigel Farage’s Reform UK party. Labour now trails Reform in national polls, though the next general election is not expected before 2029.

Rayner revealed on Wednesday that she had underpaid stamp duty on a seaside flat in Hove after selling her share of the family home during her 2023 divorce. She explained that she transferred the property into a trust fund to secure housing for her disabled son, then used the proceeds to buy the £800,000 flat. Rayner initially paid the lower rate of stamp duty, claiming it was her main residence, but later admitted this was incorrect as she was still deemed to have an interest in the family home.

Magnus noted the case involved “considerable complexity” and that Rayner had twice received advice indicating the lower rate applied—though this advice was not expert tax guidance. Her failure to seek specialist advice, he said, meant she had not upheld “the highest possible standards of proper conduct.”

Once seen as a future Labour leader, Rayner has long been a target for Conservative critics and right-wing media. Her straight-talking style and working-class roots—she left school at 16 with no qualifications after becoming pregnant—have made her a popular figure with many voters. She grew up in one of Stockport’s most deprived housing estates, rising through the Labour ranks to become one of its most high-profile politicians.