Deputy Prime Minister of Britain, Angela Rayner has resigned following a property tax scandal, dealing a severe blow to Prime Minister Keir Starmer’s embattled Labour government.
Rayner’s exit comes after revelations that she underpaid £40,000 in stamp duty when purchasing a second home earlier this year, a controversy that snowballed into a national scandal and raised accusations of hypocrisy.
In a resignation letter to Starmer on Friday, Rayner confirmed she was stepping down as Deputy Prime Minister, Housing Minister, and Deputy Leader of the Labour Party, citing “unbearable” media scrutiny.
“While I rightly expect proper scrutiny on me and my life, my family did not choose to have their private lives interrogated and exposed so publicly,” she wrote.
A political star brought down by scandal
Rayner, 45, had been one of Labour’s most charismatic figures, celebrated for her working-class roots and plain-speaking style. A mother at 16 who grew up on a council estate near Manchester, she worked as a carer and trade union representative before entering politics.
Her rise to become Britain’s first working-class Deputy Prime Minister inspired many voters. Her earthy, extroverted persona stood in sharp contrast to Starmer’s reserved manner, making her a favourite among grassroots supporters.
“For a teenage mum from a council estate in Stockport to serve at the highest level of government has been the honour of my life,” Rayner said in her farewell statement. “Politics changes lives because it changed mine.”
Rayner’s authenticity – often highlighted in viral moments such as dancing at London Pride or vaping in an inflatable canoe – endeared her to young voters. But the property tax controversy proved fatal to her political future.
The tax row that triggered her downfall
The scandal erupted after reports revealed that when Rayner bought an £800,000 apartment in Hove in May, she paid £30,000 in stamp duty instead of the higher £70,000 rate applicable to second homes.
Rayner claimed she acted on incorrect legal advice, believing she had no additional property after placing her Greater Manchester home into a trust for her children. That trust was funded by a medical settlement following complications at her son’s birth.
While some tax experts acknowledged the complexity of the UK system, critics seized on the issue, branding her a hypocrite for previously attacking Conservative MPs over similar lapses.
In 2018, she accused former health minister Jeremy Hunt of “sleaze” for exploiting a “Tory tax loophole,” and later demanded ex-Chancellor Nadhim Zahawi’s resignation for failing to declare a £5 million settlement with tax authorities.
Dan Neidle, founder of Tax Policy Associates, noted: “The tax system is a mess, and stamp duty particularly messy. So I’m generally forgiving of people who make mistakes.” Still, he admitted Rayner’s history of attacking opponents made her position harder to defend.
Political implications for Labour
Starmer initially defended Rayner, but his support weakened as public outrage grew – particularly at a time when Labour is considering property tax reforms amid a severe housing crisis.
Critics argued her position was untenable, and Friday’s resignation removes a major player from Labour’s leadership team. It also leaves Starmer without one of the party’s strongest communicators and a key bridge between its centrist leadership and traditional working-class base.
Her departure comes at a turbulent time for Labour. Despite winning a landslide election in July 2024, the party’s popularity has plunged. The anti-immigration Reform UK party now leads national polls and is holding a major rally in Birmingham this weekend, capitalising on Labour’s troubles.
Some analysts believe Starmer may privately welcome the exit of his most credible rival and potential successor. However, the loss of Rayner caps a disastrous summer for Labour, marked by policy missteps and growing disillusionment among voters.
In his letter to Rayner, Starmer expressed sadness: “Although I believe you have reached the right decision, it was a decision which I know is very painful for you. You have been a trusted colleague and true friend for many years.”
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