Angela Rayner’s resignation prompts broader cabinet reshuffle, with House of Commons leader and Scotland secretary sacked.
Published On 5 Sep 2025
The United Kingdom’s Deputy Prime Minister Angela Rayner has stepped down after a probe found she violated the ministerial code for underpaying tax on her flat, prompting a broader cabinet reshuffle and throwing the Labour Party deeper into turmoil.
In a letter to Prime Minister Keir Starmer on Friday, Rayner conceded she “did not meet the highest standards” and would resign from her roles as housing minister and deputy leader of Labour.
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“I deeply regret my decision to not seek additional specialist tax advice,” said Rayner, having last week admitted to underpaying a surcharge on the flat. She said she took “full responsibility for this error”.
Starmer replied that he was “very sad” to lose her from government, but added: “You will remain a major figure in our party.”
The resignation of Rayner – who was popular with working-class voters and a skilful mediator between Labour’s left and centrist wings – is a major blow to Starmer, whose government has endured a series of crises since taking power in July 2024 and now trails hard-right firebrand Nigel Farage’s Reform UK party in national polls.
“In losing her, Keir Starmer loses perhaps the closest link the Labour Party has to its working-class roots,” reported Al Jazeera’s Jonah Hull from Birmingham in the UK.
Rayner’s departure came shortly ahead of UK media reports that several other cabinet members had been fired – House of Commons leader Lucy Powell and Scotland secretary Ian Murray.
In a post on X, Powell said Starmer had told her he intended to replace her with a new Commons leader.
“This has not been an easy time for the government. People want to see change and improvements to their difficult lives,” Powell said.
A Statement from me: pic.twitter.com/5NmhJeKDRV
— Lucy Powell MP (@LucyMPowell) September 5, 2025
‘Complexity’ in Rayner tax scandal
Rayner disclosed on Wednesday that she had underpaid so-called stamp duty on a seaside flat in southern England following days of reports suggesting that she had saved £40,000 ($53,000) by removing her name from the deeds of another property.
After looking into the case, ethics chief Laurie Magnus said the rules “entailed a considerable degree of complexity” and recognised that Rayner had twice been advised that the lower rate of stamp duty was applicable.
That advice, however, was qualified by the admission that it did not constitute expert tax advice.
Rayner’s failure to seek further guidance meant she “cannot be considered to have met the highest possible standards of proper conduct”, said Magnus.
Rayner had often been tipped to become Labour leader one day and has been a top target for political attacks by the Conservatives and right-wing media.
