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UK Deputy Prime Minister Angela Rayner resigns over tax controversy following home purchase inquiry

UK Deputy Prime Minister Angela Rayner resigned after an inquiry found she breached ethical standards over a £40,000 stamp duty shortfall on her recent property purchase, triggering a leadership shake-up in the Labour Party.

Angela Rayner
Angela Rayner Image Source : AP
Published: , Updated:
New Delhi:

UK Deputy Prime Minister Angela Rayner resigned on Friday following an independent inquiry that found she had failed to meet the ethical standards required of government ministers in relation to her recent home purchase. Rayner admitted earlier this week that she had not paid the correct stamp duty on her £800,000 apartment in Hove, purchased earlier this summer.

In her resignation letter to Prime Minister Keir Starmer, Rayner took full responsibility for the oversight, acknowledging that, although she acted in good faith, she should have sought more specific tax advice. The independent inquiry, conducted by adviser Laurie Magnus, concluded that Rayner had breached the ministers’ code of conduct, despite acting with integrity.

Starmer expresses 'real sadness' over resignation

Prime Minister Keir Starmer expressed his sadness over Rayner’s resignation, praising her dedication to public service. "I have nothing but admiration for you and huge respect for your achievements in politics," Starmer wrote in a handwritten letter, signing off with "real sadness."

Rayner had referred herself to the independent adviser following the controversy over her property tax shortfall, which reportedly amounted to £40,000 due to the failure to pay the correct stamp duty.

Tax Issue: £40,000 shortfall on £800,000 purchase

The controversy centres around Rayner’s failure to pay the required tax on her £800,000 property, an issue that has drawn criticism, particularly from her political opponents. Rayner explained that personal factors, including her divorce and caregiving responsibilities for her son, had contributed to the oversight.

Political fallout and labour shake-up

Rayner's resignation has caused political shockwaves, especially given her vocal stance on tax avoidance. Conservative leader Kemi Badenoch criticised Rayner for hypocrisy, accusing her of “dodging tax.” Rayner’s departure has also created a significant leadership vacuum in the Labour Party, where she was seen as a potential future leader.

In addition to resigning as Deputy Prime Minister, Rayner stepped down as Deputy Leader of the Labour Party, sparking a leadership reshuffle within the party. With Starmer facing a critical period, Labour now grapples with a leadership transition and the impact of Rayner’s sudden exit.

(AP inputs)

 

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