Angela Rayner has resigned from Keir Starmer’s government following days of mounting pressure after failing to pay stamp duty on her £800,000 seaside flat – but do you think it was the right decision? A report from Sir Laurie Magnus found that the deputy prime minister had breached the ministerial code after she admitted to paying £40,000 less surcharge than she should have on the property in Hove in May. The resignation – days after Starmer announced a ‘reset’ of his government following the summer recess – marks a major blow for the Prime Minister and it is understood he is planning a wider cabinet reshuffle.
Starmer said Rayner would “remain a major figure in our party” despite her resignation from the roles of deputy PM, housing secretary and deputy Labour leader. Her exit could also impact the party’s grassroots support and signal the loss of a bridge between Downing Street and Labour backbenchers, as well as a figurehead for the government’s pledge to build 1.5 million new homes and flagship workers’ rights bill.
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Sir Laurie said he believed Rayner had “acted in good faith” but failed to “heed the caution” of legal advisors when buying the £800,000 seaside flat.
She said she had acted on mistaken legal advice at the time, before later realising she was liable to pay a higher stamp duty rate.
In her resignation letter, Ms Rayner said: “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 would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount.”
She has faced repeated criticism from oppositionary political figures including Tory leader Kemi Badenoch, who accused her of “not being honest with the British public” and Reform leader Nigel Farage, who said her exit would cause major “splits” in the Labour party.