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Angela Rayner, long considered one of the Labour Party’s rising stars, has stepped down after an ethics probe found she breached the ministerial code by underpaying property tax
Deputy British PM Angela Rayner. (Reuters/File)
The Labour government of UK Prime Minister Keir Starmer suffered a major setback when Deputy Prime Minister Angela Rayner announced her resignation. Rayner, who also held the housing portfolio, was forced out after the prime minister’s independent ethics adviser concluded she had breached the ministerial code.
The ruling related to her purchase of a seaside flat in Hove, East Sussex, valued at about £800,000 (Rs 8.8 crore). She admitted underpaying stamp duty — Britain’s property transfer tax — by about £40,000 (Rs 48 lakh).
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In her resignation letter, Rayner said she accepted “full responsibility” and insisted it was never her intention to pay less than owed. Starmer responded in a handwritten note, praising her political record and accepting her decision “with real sadness.”
Who Is Angela Rayner?
Rayner, 45, is one of the most prominent figures in Britain’s Labour Party, which was the main opposition for over a decade before sweeping to power under Starmer in 2024.
Her background has long been part of her political appeal. Raised in Stockport, near Manchester, in a disadvantaged housing estate, she grew up with a frequently absent father and a mother living with bipolar disorder and depression. She left school with few qualifications and became a mother at 16.
She worked as a care worker before moving into trade union activism, a traditional route into Labour politics. In 2015, she entered Parliament as MP for Ashton-under-Lyne, a constituency near Manchester. From there, she quickly rose through the ranks, known for her blunt speaking style and strong appeal to working-class voters.
By 2024, after Labour’s landslide election win, Rayner was deputy prime minister and housing secretary, effectively making her the second-most powerful person in the government. Her working-class roots and grassroots support led some to see her as a potential successor to Starmer, according to AFP.
What Exactly Is Stamp Duty And How Much Did She Underpay?
The controversy erupted when newspapers reported that Rayner had bought a flat in the seaside town of Hove in May 2025. She paid around £30,000 ($40,000 or Rs 35 lakh) in stamp duty, believing this was the correct amount.
Stamp duty in the UK is a tax charged whenever property changes hands, somewhat like registration and property transfer fees in India. For someone buying their first or only home, the rates are straightforward: they rise in slabs from zero up to 12 per cent depending on the property’s value.
But the law is stricter for second homes. Anyone buying an additional house must pay an extra 5 per cent surcharge on top of the normal rate. On expensive properties, this can nearly double the tax bill. In Rayner’s case, that meant the duty on her £800,000 flat should have been close to £70,000 ($95,000 or Rs 83 lakh). By paying the standard rate, she underpaid by about £40,000.
How Did A Trust For Her Son Land Her In Trouble?
Rayner argued that she believed she was eligible for the lower rate because she had sold her share of her Greater Manchester family home earlier in 2025. That property had been placed in a trust for her disabled son, who requires lifelong care after being born prematurely.
Trusts are legal arrangements used to hold money or property on behalf of someone else. In India too, family trusts are common, especially when parents want to secure assets for children. Under UK law, however, trusts can be treated in unexpected ways for tax purposes.
According to The Independent, Rayner and her ex-husband had set up such a trust in 2020 to safeguard their son’s housing after he received a medical negligence settlement. In January this year, after their 2023 divorce, she sold her 25 per cent stake in the Ashton-under-Lyne home to the trust for about $220,000 (Rs 1.93 crore). She then used most of this — about $200,000 (Rs 1.76 crore) — as the deposit for her new Hove flat.
Because her name was no longer on the deeds, Rayner believed she did not own the Manchester home and could list the Hove property as her main residence. But UK tax law has what are called “deeming provisions.” These state that if a home is held in trust for a child under 18, the parent can still be treated as having an interest in it. That meant the Manchester home still counted against her, and the Hove flat was treated as a second home.
What Did The Ethics Adviser Conclude About Her Conduct?
With the row dominating headlines, Rayner referred herself to Sir Laurie Magnus, the prime minister’s independent adviser on ministerial standards, a watchdog who investigates whether ministers have broken the official code of conduct.
This ministerial code is the rulebook that requires British ministers to act with honesty, integrity, and transparency, and any breach can make it difficult to remain in office.
According to The Independent, Magnus’s report found that Rayner had acted “with integrity and good faith” and did not deliberately try to avoid tax. However, he faulted her for failing to seek proper specialist advice. Her legal counsel had warned that their guidance did not constitute expert tax advice and urged her to consult a tax lawyer, advice she did not follow.
“It is deeply regrettable that the specific tax advice was not sought,” Magnus wrote. While acknowledging Rayner’s “dedicated and exemplary commitment to public service,” he concluded that she had nonetheless breached the code because she had not upheld the “highest possible standards of conduct.” Magnus’s ruling left her position untenable despite her cooperation with the inquiry.
Controversy Turned Into A Political Storm
The resignation of a deputy prime minister would be a blow in any government, but it carried particular weight for Labour. Rayner was not only Starmer’s deputy but also the housing secretary, the minister tasked with addressing Britain’s acute housing crisis.
As The Conversation pointed out, the optics were damaging: a housing minister brought down by a property tax dispute. Opponents from the Conservative Party and sections of the British press accused her of hypocrisy, since Labour had itself raised stamp duty surcharges to discourage second-home ownership and protect housing supply.
The backlash grew sharper. Graffiti was daubed outside her Hove flat as the scandal escalated. Critics also reminded the public that she had access to Admiralty House, a grace-and-favour residence in central London provided for senior ministers, an uncomfortable contrast while she was facing a tax underpayment row.
For Starmer, the timing was especially awkward. As AP noted, several senior staff members had already resigned from his office in recent months, and the opposition was eager to frame Rayner’s exit as another sign of instability in his leadership.
What Happens Next For Rayner And Labour?
Rayner now faces repayment of the underpaid duty, about $55,000 (Rs 48 lakh), plus interest and possibly a penalty of up to $16,000 (Rs 14 lakh). UK tax specialists say even experienced solicitors sometimes overlook how trusts affect stamp duty. But despite the complexity, tax authorities are unlikely to waive her liability.
In her resignation letter to Starmer, Rayner said her decision was driven not only by the ethics adviser’s findings but also by the toll of media scrutiny on her family. “The demands of government are nothing compared to the challenge of putting food on the table,” she wrote.
About the Author
Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar…Read More
Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar… Read More
September 06, 2025, 09:26 IST
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