Rayner quits after code breach over stamp duty
Angela Rayner has stepped down as deputy prime minister after an independent investigation found she breached the UK ministerial code by underpaying stamp duty on a property in Hove. Prime Minister Sir Keir Starmer accepted her resignation on 5 September 2025, saying privately he was saddened to lose a close ally he saw as a symbol of social mobility. The departure lands as one of the most consequential moments of his premiership to date.
The inquiry’s bottom line was stark but nuanced: it concluded Rayner had “acted with integrity,” yet fell short of the standards set for ministers because she did not seek specialist advice on her stamp duty obligations. In other words, this was not framed as deliberate wrongdoing but a failure to take the professional tax guidance the code expects of ministers who face complex personal financial decisions.
- The investigation found a breach of the ministerial code linked to underpaid stamp duty on a Hove property.
- Keir Starmer accepted Rayner’s resignation, while praising her service and character.
- Former foreign secretary David Lammy has been appointed deputy prime minister.
- The move triggers a cabinet reshuffle and a coming contest for Labour’s deputy leader.
- Rayner remains a major political figure and could become a force on the backbenches.
For voters, stamp duty can feel like a maze. It’s a one-off tax on property purchases in England and Northern Ireland, with rates that vary depending on price, timing, and circumstances like first-time buyer status. Underpayments are usually corrected through settlement with HMRC, which can include interest and penalties. The report did not allege intentional evasion; it focused on the ministerial duty to get expert advice and avoid avoidable errors in the first place.
This is exactly where the ministerial code bites. The document is not just about conflicts of interest—it’s about judgment, diligence, and keeping public confidence. Ministers are expected to follow the law and to be extra cautious where personal finances intersect with public roles. Even a technical breach can be politically fatal if it looks like a lapse in standards. Rayner’s decision to resign follows a well-established pattern in British politics: when the code is breached, accountability often means stepping aside.
Her exit will sting inside Labour. Rayner’s backstory—trade union roots, a straight-talking style, and a reputation as a campaigner for workers’ rights—helped connect the party leadership to members and voters who wanted proof Labour still speaks for them. She brought ballast with the party’s left and a real-world credibility that is hard to replace.
What the reshuffle means and where it leaves Labour
David Lammy’s move from the Foreign Office to deputy prime minister is a statement of trust from No 10. The deputy PM role is not defined in law and can vary from government to government, but it typically means acting as a senior political coordinator, fronting key policy pushes, and standing in publicly when the prime minister needs air cover. Lammy, a seasoned communicator with long experience on justice, foreign affairs, and equality issues, will now be central to both the government’s message and its day-to-day operations.
A reshuffle was inevitable once the deputy premiership opened up. Expect consequential moves to fill Lammy’s old brief and recalibrate several portfolios that touch the economy, housing, and public services. The leadership will want to show stability and momentum, not upheaval—especially with budgets, public-sector pay settlements, and international priorities already in motion.
Rayner’s departure, however, is more than a personnel change. It changes Labour’s internal chemistry. She acted as a bridge between the leadership and parts of the movement that remain suspicious of centrism. Removing that bridge could make party management harder. Allies say she will not be disloyal from the backbenches, and there is no sign she intends to be. But a popular, media-savvy ex–deputy PM can shape the agenda from outside government, especially on housing, workers’ rights, and the cost of living—themes where she is comfortable and credible.
The party now needs a new deputy leader. Labour’s deputy leadership is chosen through an internal ballot, and the National Executive Committee will set the timetable and rules. Expect a crowded field. The fault lines are familiar: how close to stand with the unions, how hard to push on public ownership, what to prioritise in the first years of government, and how to keep the party’s coalition of voters together. The winner will instantly become one of the most visible faces of the party—and a crucial partner, or counterweight, to the leadership.
Politically, the optics here are tricky. While the investigation credited Rayner’s integrity, the words “tax” and “underpayment” are combustible. Voters who are already stretched can bristle at any hint that those in power play by different rules. Past scandals, across parties, have taught Westminster how fast money stories can harden into “one rule for them” narratives. That’s why the prime minister moved quickly: accept the resignation, reset the team, and get back to the work of governing.
There are still unknowns. Officials did not disclose the detail of any settlement terms with HMRC or the timeline of the underpayment’s discovery. They framed the breach around process—failing to seek expert advice—rather than intent. That matters, legally and ethically. In British politics, you do not need to break the law to break the code. The threshold is higher, because the job is bigger.
The immediate tests come fast. Starmer must reassure voters that standards in public life are not negotiable, while proving his government is focused on delivery. Lammy needs to stitch together a reshuffled cabinet without losing tempo on foreign policy priorities. And Rayner, now liberated from collective responsibility, has to decide how loudly to speak on the issues that built her following.
Inside Labour, many will feel the loss. On the campaign trail, Rayner worked the rooms others could not reach—trade union halls, community centres, doorsteps where trust is earned face to face. That talent doesn’t vanish with a resignation letter. If anything, it can grow on the backbenches. The question now is how the party balances discipline with plurality, keeping its grip on government while leaving space for a distinctive voice that still resonates across the movement.
In the short term, expect a carefully choreographed series of announcements: the new foreign secretary, supporting ministerial changes, and a fresh timetable for the deputy leadership race. The government will bid to turn the page quickly. Whether the public lets them will depend on how cleanly this transition runs—and whether the promise of higher standards is matched by visible results.