LONDON – Britain’s Deputy Prime Minister Angela Rayner resigned on Friday after admitting she underpaid £40,000 ($54,000) in property tax on a home purchase, a scandal that has shaken Prime Minister Keir Starmer’s government.
Rayner, 45, stepped down after an independent adviser ruled she had breached the ministerial code by failing to pay the correct tax. In her resignation letter, she said: “I deeply regret my decision not to seek additional specialist tax advice. I take full responsibility for this error. Given the findings, and the impact on my family, I have therefore decided to resign.”
Starmer, who described Rayner as a “trusted colleague and true friend,” said he was “very sad to be losing her from the government” but admitted she made the right decision.
The resignation marks the eighth ministerial departure from Starmer’s cabinet, the most outside reshuffles for any new prime minister in nearly five decades – surpassing even Boris Johnson’s turbulent tenure.
Political Fallout
The timing could not be worse for Labour. Polls show the party trailing Nigel Farage’s Reform UK, which seized on the scandal to attack Labour’s credibility. Speaking at Reform’s party conference in Birmingham, Farage declared the government was in “deep crisis,” warning Labour might even call an early election before 2027.
Critics accuse Labour of hypocrisy for preaching fiscal discipline while senior figures accept expensive gifts, including designer clothing and concert tickets, from wealthy donors.
Rayner’s Profile and Influence
Rayner’s exit is a personal and political loss for Starmer. Once a teenage single mother from a working-class background, she held unique appeal across Labour’s left and centrist factions. Many saw her as a unifying figure with broader public resonance than the prime minister himself.
“Any resignation is a blow, especially Ange,” said one Labour MP. “She clearly had to go, but she’ll remain a big figure — maybe even a future challenger.”
The Tax Dispute
The controversy stemmed from Rayner’s decision to sell her share of a family home in northern England to a trust set up for her son, who has lifelong disabilities, in order to buy an apartment in Hove. Believing she did not have to pay the higher second-home tax rate, she later admitted the transaction was miscalculated and pledged to pay the outstanding amount.
The independent adviser concluded she had breached the ministerial code by ignoring clear legal warnings to seek expert advice.
With her resignation, Labour faces a deepening political crisis, balancing fiscal pressures with growing voter discontent.