UK Deputy PM Angela Rayner Resigns Over Tax Error

(FILES) Britain’s main opposition Labour Party deputy leader Angela Rayner speaks on stage at the Greenock Arts Centre, northwest of Glasgow on May 31, 2024 as part the Labour general election campaign in the build-up to the UK general election on July 4. Angela Rayner resigned as deputy prime minister and secretary of state for housing communities and local governmentm, as well as deputy leader of the Labour party over tax error on September 5, 2025. (Photo by ANDY BUCHANAN / AFP)

Britain’s deputy prime minister Angela Rayner resigned on Friday after an investigation found she breached the ministerial code by underpaying on a property tax, in a major blow to Prime Minister Keir Starmer’s embattled Labour government.

Rayner, a figurehead among the party’s left-wing base, had earlier this week admitted not paying enough of a surcharge on the flat purchase and referred herself to the government’s independent ethics adviser.

In a letter to Starmer, ethics chief Laurie Magnus wrote that Rayner had failed to “heed the caution” of legal advice she had received so he considered the “code to have been breached”.

“I accept that I did not meet the highest standards,” Rayner wrote in her resignation letter to Starmer, adding she would also be stepping down as housing minister and deputy leader of the Labour Party.

“I deeply regret my decision to not seek additional specialist tax advice,” Rayner said, adding she took “full responsiblity for this error”.

In his reply, Starmer told her he was “very sad” to lose her from government, but added: “You will remain a major figure in our party”.

The resignation adds to the woes of his government, which has lurched from one storm to another since sweeping to power in July 2024 after 14 years in opposition.

It has been forced to U-turn on welfare reforms and fuel benefits for the elderly, while its failure to stop undocumented migrants arriving on small boats is fuelling support for hard-right firebrand Nigel Farage’s Reform UK party.

It now lags well behind Reform in national polls, although the next general election is unlikely to occur before 2029.

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.