ANGELA Rayner has sensationally quit as Deputy PM today after admitting she did not pay £40,000 in stamp duty.
A major cabinet reshuffle will take place after Sir Keir Starmer acted following a probe by his chief sleaze-buster in the “hypocritical” Housing Secretary.
Angela Rayner has quit the governmentSky News
PAGraffiti appeared outside her new home in Hove on Thursday[/caption]
Simon JonesMs Rayner at the Labour Party Conference in Liverpool last year[/caption]
Sir Laurie Magnus’ investigation will be published imminently.
Ms Rayner has also walked away from her jobs as Housing Secretary and Deputy Labour Leader.
The move will trigger a fresh contest among party members for her replacement in the latter role.
It came after her solicitors accused the Deputy PM of “scapegoating” them to defend her tax avoidance.
An embattled Ms Rayner had remained tight-lipped for days about the scandal before finally opening up on her tax affairs in an emotionally-charged interview on Wednesday.
It emerged that she had told tax authorities the Hove flat was her main home – instead of her house in Greater Manchester.
Not only did she save £40,000 in stamp duty but Ms Rayner also reportedly used her disabled son’s NHS compensation to buy the flat.
When asked about accusations she dodged the tax bill on her new flat, she admitted to making an error which she “deeply regrets”.
The former Deputy PM said she could explain it clearer after a court order was lifted on Tuesday night.
Another one bites the dust
By Ryan Sabey, Deputy Political Editor
ANGELA Rayner has become the 7th Minister to have left the government in controversial circumstances since Sir Keir Starmer swept to power in July last year.
The Deputy Prime Minister becomes the most high profile figure to have quit following her stamp duty controversy.
The PM was understood to have been keen to hold on to Rayner but serious failings over her tax affairs meant she had no choice to leave office.
Her departure comes nearly a year after Transport Secretary Louise Haigh resigned from her post after failings in correcting police records more than a decade earlier.
Haigh left after in November last year it emerged she had been convicted of fraud over a missing work phone.
In her departure letter, she said whatever the facts of the matter the issue will be a “distraction”.
Treasury Minister Tulip Siddiq resigned as a Treasury Minister back in January this year following growing pressure into an anti-corruption probe in Bangladesh.
She referred herself to the ethics adviser Sir Laurie Magnus after concerns were raised about her aunt who quite as the country’s PM.
The sleaze adviser said that he had “not identified” evidence of impropriety but hit out at Siddiq that she hadn’t been more aware of the “potential reputational risks” of links to her relative.
Public Health Minister Andrew Gwynne was sacked from his job back in February after comments made in a WhatsApp group.
Gwynne was also suspended from the Labour party after comments made in a group chat called Trigger Me Timbers.
He made a joke about how he hoped a 72-year-old woman would soon be dead after she wrote her her local councillor about bin collections.
It was also claimed that he targeted a constituent joking about them being “mown down” by a truck.
It also follows Rushanara Ali who left government last month after allegations she had increased rent at a property she owned.
She was embroiled in hypocrisy row in the way that she handled the rent rise.
She ended one set of tenants’ fixed-term contract to sell her home. But then she re-listed the property for rent at a higher cost within a six month time frame.
But the government at the same time was trying to make this illegal under their flagship Renters’ Rights Bill.
Sir Keir also lost Vicky Foxcroft who left her role as a government whip amid a growing row over making £5 billion of benefits cuts.
She spoke out about the row ahead of a planned vote which eventually led to the government caving in on their reforms. Foxcroft said she wouldn’t be able to vote for the disability cuts.
Anneliese Dodds quit as International Development Minister over cuts to the overseas aid budget.
She was furious over the government’s decision to nearly halve the spending that was diverted towards the defence budget.
But she was dealt a hammer blow last night by her own solicitors, after trying to blame them for bad legal advice.
The small family firm she used, Verrico and Associates, said it had based its calculations on information Ms Rayner herself provided, adding that it had been made “scapegoats”.
Ms Rayner paid £30,000 instead of the full £70,000 on her pad in Hove, near Brighton — which has since had graffiti daubed outside calling her a “tax evader”.
Verrico and Associates’ boss has said she has “arrows stuck in her back” over the scandal, adding that she “did not and never have given tax or trust advice”.
A white wall outside Rayner’s £800,000 home has the word “b****” alongside a larger “tax evader!” spray.
Across the road, construction chipboard has been adorned with graffiti saying: “Tax evader Rayner” and “Rayner tax avoidance”.
Ms Rayner, recently pictured kayaking near the seafront property, referred herself to the government’s sleaze-buster.
Her resignation comes after ex-Prime Minister Liz Truss said the deputy PM should walk away from office.
Speaking about whether her position was tenable, she said: “It’s looking very difficult for her. I mean, she’s a first-class hypocrite.
“She spent years and years attacking Tories over tax, over second homes, and she’s been found not paying enough tax.
“Ever since they’ve gone into government, it’s been one scandal after another, accepting freebies, private jets, not paying their taxes.
“The country is headed for ruin, and meanwhile they’ve got their hands in the till.”
Runners and Riders to replace Angela Rayner as Deputy PM
Wes Streeting – Odds: 4/1
Wes Streeting, the Health Secretary and MP for Ilford North, is one of Labour’s most visible frontbenchers.
Known for his confident media presence and centrist appeal, he has built a reputation as a strong communicator and effective campaigner.
In the betting markets he is currently the frontrunner, priced at 4/1 to become the next Deputy PM.
Yvette Cooper – Odds: 9/2
Yvette Cooper, now serving as Home Secretary, brings long experience across several senior Cabinet and shadow roles.
But while she has served her time in parliament, she’s struggled to grapple with the small boats crisis.
Bookmakers currently place her as second favourite in the Deputy PM betting, at 9/2.
Ms Cooper’s established standing in the party and depth of experience make her a serious option if a successor is needed.
Pat McFadden – Odds: 12/1
Pat McFadden, Chancellor of the Duchy of Lancaster, is a senior figure trusted with coordinating government business and intergovernmental relations.
While not the most high-profile member of the Cabinet, he is seen as a reliable operator with close ties to Sir Keir’s leadership team.
In the markets he is currently priced at 12/1 to take on the Deputy PM role.
His reputation for quiet competence and steady management keeps him in contention as a possible candidate.
Darren Jones – Odds: 20/1
Darren Jones, the Chief Secretary to the Prime Minister, is one of the younger faces in government with growing Cabinet responsibilities.
Last week he was moved by Sir Keir Starmer from the Treasury to a new No10 role focused on delivering policies and reporting directly to the PM.
Bookmakers view him as an outsider, giving him odds of 20/1 to step into the Deputy PM role.
While less established than some of his colleagues, his rising influence means he could be considered in a reshuffle.
But despite her admission and growing backlash, Sir Keir Starmer stood firmly by his right-hand woman.
The Prime Minister was accused of having “no backbone” by Tory leader Kemi Badenoch.
He backed Ms Rayner saying he was “very proud to sit alongside” her at Wednesday’s Prime Minister’s Questions.
The PM said her move to refer herself to the independent ethics adviser was “the right thing to do”.
Ms Badenoch fumed: “I remember when the Prime Minister said tax evasion is a criminal offence, and should be treated as all other fraud.
“If he had a backbone, he would sack her.”
Angela Rayner’s long history of past controversies
By Ryan Sabey, Deputy Political Editor
Angela Rayner’s departure from government is the latest gaffe in her political career since she became an MP back in 2015.
The Deputy Prime Minister has walked away from government over failing to pay the correct amount of stamp duty but it’s not the first time controversy has followed her.
She provoked fury at the Labour party conference back in 2021 when she described the Conservatives as “scum”.
Her comments at a fringe meeting at the annual rally drew criticism from two of her colleagues in the shadow Cabinet Ministers and the Tories.
She went on to defend her language saying they were being made in the “street language” of her northern working-class upbringing.
It also emerged that she received £3,500 in free clothes from Lord Alli while she was in opposition.
She had previously said the donation was accepted for Parliamentary duties but later changed the register to show it was for “work clothes”.
She also used Lord Alli’s New York flat for a personal holiday over the New Year period while in opposition declaring it was worth £1,250.
She was also engulfed into a row over over the sale of her council home and her living arrangements before she became an MP.
Cops in Manchester looked at whether she paid the correct amount of tax when moving and was registered to vote at the right address, She was found not to have committed any criminal offence.
Ms Rayner came under fire after The Sun on Sunday revealed she bought an £800k flat on the south coast.
Her new home earned the ex-Deputy PM the nickname “Three Pads Rayner”
She purchased the property while also having access to a grace-and-favour property Admiralty House in central London.
Another pad belonged to Rayner in her constituency home of Ashton-under-Lyne.
Her main defence on her stamp duty underpayment was that she received flawed advice by a tax expert.
Speaking through teary-eyes, Ms Rayner told Sky: “I made a mistake based upon the advice that I relied upon that I received at the time.
Sky NewsHer new home earned the ex-Deputy PM the nickname ‘Three Pads Rayner’[/caption]
PAHer resignation comes after ex-Prime Minister Liz Truss said the deputy PM should walk away from office[/caption]
GettyMs Rayner came under fire after The Sun on Sunday revealed she bought an £800k flat on the south coast[/caption]
“A leading expert has now said that advice was wrong.
“People make mistakes, but I conducted myself in trying to do the right thing, and I hope that people can see that.”
She explained that, in 2023, she and her ex-husband transferred ownership of the constituency home to a trust set up to provide for their disabled son.
That property remains their family home, she insisted.
She said: “When I’m looking after the children, I go back to the family home.
“And then when my ex-husband is looking after children, he does.”
Ms Rayner then sold her 25 per cent stake in the property to the trust and used the money to buy the Hove flat in May this year.
How Rayner’s tax saga unfolded
April 2016 – Angela Rayner buys house with husband Mark in Manchester
2020 – Rayner’s son is awarded an NHS payout, which is put into a trust
2023 – The couple divorce. They put 50% of the family home into the trust – and split the remaining shares equally
January 2025 – Rayner sells her 25% share to the trust, which now owns 75% of the house. She received a lump sum, believed to be £162,500
May 2025 – Rayner uses the money – along with a mortgage – to buy an £800,000 seaside flat in East Sussex.
She paid £30,000 stamp duty on the property, claiming it is her primary residence.
But the beneficiary of the trust – Rayner’s son – is under 18. This means his parents are still co-owners of their Manchester home. Because of this, Rayner should have paid the “second home” stamp duty rate of £70,000
August 2025 – The Sun breaks the story. We reveal Rayner has bought her seaside flat, while already owning the Manchester property and her grace-and-favour ministerial apartment in Westminster
August 2025 – A spokesperson for Rayner says she paid the “correct duty” on the purchase of her flat
August 2025 – Toris write to the PM’s ethics advisor, asking him to investigate Rayner’s tax affairs. Rayner instructs a senior lawyer to review her tax position
1 September 2025 – Rayner says she can’t give further details on her tax situation due to a court order. Keir Starmer rallied around his deputy, saying he’s “proud” of her
The court order is lifted the following day
3 September – Rayner admits she has underpaid tax. She refers herself for investigation by the ethics advisor
She said lawyers advised she did not have to pay a stamp duty “surcharge” on second homes because she had sold her stake in her constituency home.
“I relied on that legal advice that I received that said that I was liable to pay the standard stamp duty,” she said.
However, she said after the media exposed her property situation she sought fresh legal counsel.
They informed her the previous advice was “inaccurate because of the trust”.
And she admitted that because of the trust – she was liable to pay the extra £40k stamp duty on the Hove flat.
Pressed on accusations she did not pay the correct stamp duty, she admitted: “They are accurate. Yes.”
Tory Shadow Housing Secretary James Cleverly said: “Angela Rayner’s endless list of excuses simply does not stack up.
“It is simply not good enough to plead ignorance with something as serious as this.
“Either she didn’t take proper advice, or is not being honest about how she conducted her affairs. This scandal has gone too far.
“The minister responsible for homes cannot be facing an investigation for serious concerns around taxes on her own homes.”
At the time of the Hove purchase in May, she avoided paying the full £70,000 in second home stamp duty — paying £30,000 instead.
She did this by claiming it was her only property.
Ms Rayner said she had given up her stake in the family home at Ashton-under-Lyne, though it is still listed as her primary residence.
For the Hove purchase, she reportedly used £160,000 from a trust established to care for her disabled son.
She used the compensation he was awarded by the NHS in 2020 after his premature birth, the Telegraph reported last night.
Rayner has revealed that her son Charlie was born prematurely in 2008 and received a payout in 2020 following an 11-year legal battle.
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