By Emeka Blast 
Angela Rayner Steps Down as UK Deputy PM Over Property Tax Underpayment
London, UK – Angela Rayner, Britain’s Deputy Prime Minister and Housing Secretary, resigned on Friday, September 5, 2025, after admitting to underpaying £40,000 in stamp duty on a £800,000 seaside flat in Hove, triggering a major cabinet reshuffle and dealing a significant blow to Prime Minister Keir Starmer’s Labour government. The resignation, prompted by an ethics probe concluding she breached the ministerial code, also sees Rayner step down as deputy Labour leader, setting the stage for a contentious party election, per BBC News and The New York Times.
Rayner’s departure follows intense scrutiny over her purchase of the Hove flat in May 2025, where she paid a lower stamp duty rate of £30,000, incorrectly classifying it as her only property. The error stemmed from complex arrangements involving a trust set up in 2020 for her disabled son, which held her share of a family home in Ashton-under-Lyne, Greater Manchester, per The Guardian. Tax experts noted that her continued connection to the trust meant the Hove flat qualified as a second home, requiring a higher £70,000 duty, per BBC News.
After media reports surfaced, Rayner referred herself to the Prime Minister’s ethics adviser, Sir Laurie Magnus, who concluded on September 5 that while she acted “in good faith,” her failure to seek specialist tax advice breached the ministerial code, per BBC News. In her resignation letter to Starmer, Rayner expressed “deep regret,” stating, “I take full responsibility for this error,” and cited unbearable media scrutiny on her family as a factor in her decision to resign, per CNN. She now faces a potential £12,000 HMRC fine for the “careless” error, per The Guardian.
Rayner’s exit, the eighth ministerial resignation in Starmer’s 14-month tenure, marks a low point for Labour, which trails Reform UK in polls, per Reuters. Starmer, who initially backed Rayner, expressed sadness in a handwritten reply, calling her a “trusted colleague and true friend” but agreeing her decision was “painful but right,” per The Irish Times. The resignation sparked an immediate reshuffle, with Foreign Secretary David Lammy appointed Deputy Prime Minister and Justice Secretary, Yvette Cooper moving to Foreign Secretary, Shabana Mahmood to Home Secretary, and Steve Reed taking over as Housing Secretary to lead Labour’s pledge to build 1.5 million homes by 2029, per BBC News.
Opposition leaders seized on the scandal. Conservative leader Kemi Badenoch called Rayner’s position “untenable,” accusing Starmer of “hypocrisy” for not sacking her sooner, per BBC News. Reform UK’s Nigel Farage, speaking at his party’s Birmingham conference, remarked, “You simply can’t get away with avoiding £40,000 of stamp duty as Housing Secretary,” per The New York Times. Liberal Democrat leader Sir Ed Davey noted Rayner’s position might have been untenable if the ethics probe confirmed rule-breaking, though he sympathized with her family circumstances, per BBC News.
Rayner’s working-class roots and straight-talking style made her a Labour star, bridging the party’s left and centrist wings, per The New York Times. Her resignation has divided opinion. On X, @UKPoliticsLive posted, “BREAKING: Angela Rayner resigns as Deputy PM over tax scandal. Huge blow for Starmer. #UKPolitics,” while @LabourVoice tweeted, “Rayner’s loss is devastating. She fought for working people. Media hounding went too far.” Critics, like @ToryWatch, wrote, “Rayner railed against Tory sleaze but couldn’t get her own taxes right. Hypocrisy at its finest.”
Some, including former Conservative MP Miriam Cates, defended Rayner, citing her “complex living arrangements” due to her son’s disability and divorce, per The New York Times. Tax expert Dan Neidle emphasized that her credibility hinged on whether she disclosed the trust to her lawyer, per The Guardian.
Rayner’s resignation as deputy Labour leader triggers a party election, potentially deepening divisions as MPs and members voice discontent with Starmer’s leadership, per BBC News. The reshuffle, with Rachel Reeves remaining as Chancellor, aims to stabilize the government ahead of a November 2025 budget that may include property tax hikes, per The Guardian. As Labour grapples with a tarnished image and Reform UK’s rising popularity, Rayner’s exit underscores the fragility of Starmer’s administration, with analysts warning of further challenges in uniting the party and regaining public trust.
