Angela Rayner Resigns as UK Deputy PM Following Tax Inquiry

Angela Rayner has stepped down from her position as the UK’s Deputy Prime Minister and Housing Secretary following the conclusion of an independent ethics inquiry. The inquiry, expedited due to mounting public scrutiny, found that Rayner had underpaid tax related to a recently purchased home in Hove, on the south coast of England.

The inquiry determined that Rayner, who is a prominent member of the Labour Party and serves as the Member of Parliament for Ashton-under-Lyne, breached the Ministerial Code of Conduct. Specifically, she failed to seek necessary specialist tax advice, which would have clarified her obligations regarding stamp duty on her new property.

Prime Minister Expresses Regret

In a hand-written letter responding to Rayner’s resignation, Prime Minister Keir Starmer expressed his disappointment at losing a key member of his Cabinet. He stated, “You were right to refer yourself to the Independent Adviser on Ministerial Standards and right to act on his conclusions.” Starmer emphasized his personal sadness at her departure, acknowledging her as a trusted colleague and a significant figure within the Labour Party.

Sir Laurie Magnus, the Independent Adviser on Ministerial Standards, outlined in his report that Rayner did not meet the “highest possible standards of proper conduct.” He noted that while she believed she was acting on legal advice, she overlooked the cautionary elements of that advice, which recommended seeking expert tax guidance.

Details of the Inquiry Findings

Rayner’s resignation comes after intense media coverage, which included revelations about a complex arrangement regarding the care of her disabled son. This arrangement involved another property that serves as a family home. Under the UK tax regulations, purchasing a second property incurs an additional stamp duty surcharge.

Initially, Rayner classified her new seaside apartment in Hove as her primary residence, which would subject her to the basic stamp duty rate. However, due to her family’s existing property held in trust for her son, she owed an estimated £40,000 more in taxes than she had calculated.

In her resignation letter, Rayner expressed regret for not seeking additional tax advice. “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 stated. She further mentioned the toll that ongoing media scrutiny was taking on her family.

The letters exchanged between Rayner and Starmer, along with Magnus’s findings, were made public by 10 Downing Street. Magnus described the situation as “highly unfortunate,” underscoring Rayner’s integrity and commitment to public service despite the breach of conduct.

As Rayner moves to the backbenches, she remains a significant figure within the Labour Party, poised to continue her political career even outside the Cabinet. The situation underscores the intense pressures faced by public officials and the scrutiny of their financial dealings, particularly in the current political climate.