Angela Rayner stepped down as Deputy Prime Minister and Housing Secretary on Friday (September 5) following her admission that she underpaid stamp duty on a flat in Hove by £40,000.
Following media reports, Rayner said it was a genuine error, referred herself to the ministerial standards adviser, and contacted HMRC to pay any owed tax.
She said that lawyers advised her at the time that she wasn’t liable to pay the higher rate of stamp duty for second homes, due to complex trust arrangements. The firm that managed the purchase of her home later said it did not provide her with any tax advice.
The standards adviser, Sir Laurie Magnus, wrote that while Rayner acted with integrity, “she cannot be considered to have met the highest possible standards of proper conduct as envisaged by the [Ministerial] Code” and the Code had been breached.
The Prime Minister, Keir Starmer, wrote Rayner a handwritten letter thanking her for her role in the Government and recognising her future role within the party.
It is unclear whether the PM will appoint a new Deputy PM, although a new Housing Secretary is expected, given the government’s ambitious housebuilding agenda.
A wider cabinet reshuffle is also expected.
Rayner also resigned as Deputy Leader of the Labour Party, which is a role directly elected by Labour members.
There will therefore be a deputy leadership election within the party at a time when divisions are emerging over welfare, Gaza, and immigration.
Featured Image Credit: House of Commons
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