Angela Rayner Resigns as UK Deputy Prime Minister Over Tax Dispute, Delivering a Blow to Keir Starmer
UK Deputy Prime Minister Angela Rayner resigned on Friday, admitting she had made a serious mistake by underpaying property tax on a new home. The move marks a major setback for her boss, Prime Minister Keir Starmer.
Rayner stepped down after the government’s independent adviser ruled that she had breached the ministerial code by failing to pay the correct tax. Unable to shield her, Starmer said he was “deeply saddened to lose you from government,” describing her as “a trusted colleague and a true friend.”
At 45, Rayner is the eighth and most senior member of Starmer’s team to quit—a particularly damaging blow given the Prime Minister had strongly defended her when allegations first surfaced that she failed to pay around £40,000 ($54,000) in tax on the property transaction.
Her resignation means Starmer has suffered more ministerial departures at the start of a premiership than any UK leader in nearly half a century—surpassing even the chaotic early months of Boris Johnson.
In her resignation letter, Rayner wrote: “I deeply regret my decision not to seek specialist tax advice… I take full responsibility for this mistake.”
She also stepped down as deputy leader of the Labour Party, citing both the inquiry’s findings and the toll on her family.
Starmer, in an emotional letter, said he believed she had made the right decision, but admitted: “Personally, I am heartbroken to lose you from government. Even though you will not sit in government, you will remain a central figure in our party.”
The independent adviser concluded she breached the code by ignoring warnings in legal advice to seek specialist guidance on her complex finances.
The controversy has unfolded as Labour trails Nigel Farage’s Reform UK party in polls. Seeking to repair Labour’s image amid accusations of hypocrisy over gifts from donors, Starmer now faces tough choices on spending and taxation.
Farage seized on the resignation, reshuffling his speech at the Reform Party’s Birmingham conference to declare Labour in “deep crisis” and suggesting a general election could come as early as 2027—or sooner, if Labour fears losing support despite its large majority.
Losing Rayner is especially painful for Starmer. Once a teenage single mother from a working-class background, she helped bridge Labour’s left and centrist factions and enjoyed broader grassroots appeal than Starmer himself.
A Labour MP remarked: “Any resignation is a blow, but especially Angela’s. She had to go, but don’t rule out a comeback—she may one day challenge Starmer directly.”
Rayner, visibly emotional in an interview, explained how she had set up a trust for her disabled son. It was through this trust that she sold part of her family home in northern England to buy a flat in the southern seaside town of Hove—mistakenly believing she would not be liable for higher property tax on the purchase.
After receiving fresh legal advice last week, Rayner admitted her error and said she was arranging to pay the outstanding tax.
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