LONDON — In a major political shake-up for the UK government, Deputy Prime Minister Angela Rayner has resigned from her position following a controversy over her tax arrangements. The resignation has triggered a significant cabinet reshuffle by Prime Minister Keir Starmer, with Foreign Secretary David Lammy elevated to the role of Deputy Prime Minister.
The scandal centers on Rayner’s purchase of a flat in Hove, valued at approximately £800,000, for which an independent ethics inquiry concluded she had underpaid stamp duty. The report by the independent adviser on ministerial standards found that while Rayner had acted with integrity, she had breached the ministerial code by failing to seek expert tax advice as recommended. In her resignation letter to Prime Minister Starmer, Rayner stated she took “full responsibility” for the error and expressed deep regret for not seeking additional specialist advice on the matter. She also cited the significant toll the ongoing media pressure was taking on her family as a reason for her departure.
Rayner’s resignation is a major blow to Prime Minister Starmer, coming just 14 months into the Labour government’s term. Her departure from not only her government roles but also as the Deputy Leader of the Labour Party has now forced a new internal election, a process that political observers say could expose divisions within the party.
In an effort to regain control and project stability, Starmer immediately announced a cabinet reshuffle. David Lammy, who was serving as Foreign Secretary, has been appointed as the new Deputy Prime Minister and will also take on the Justice Secretary portfolio. The reshuffle also saw a number of other key ministerial changes:
- Yvette Cooper, formerly the Home Secretary, will now serve as Foreign Secretary.
- Shabana Mahmood, who held the Justice Secretary portfolio, has been moved to Home Secretary.
- Steve Reed has been appointed to the role of Housing Secretary, a position previously held by Rayner.
- Liz Kendall, the former Pensions Secretary, will take on the added responsibility for the Science, Innovation, and Technology portfolio.
Political commentators suggest that Rayner’s resignation presents a critical test of leadership for Keir Starmer. The upcoming Labour Party deputy leadership election, fueled by the vacuum left by Rayner, could provide an opportunity for internal dissent to surface, challenging Starmer’s authority at a time when his government’s popularity has been waning.
