Britain’s Deputy Prime Minister, Angela Rayner, has stepped down following revelations that she failed to pay the correct amount of property tax on a home purchase, UK media reported on Friday. Her resignation marks another major setback for Prime Minister Keir Starmer’s struggling Labour government.
Rayner, who also held the housing portfolio, had been under mounting pressure after it emerged that she underpaid nearly £40,000 in stamp duty on an £800,000 apartment in Hove, purchased earlier this year. Instead of paying the higher rate applicable to second homes—about £70,000—she paid £30,000.
She insisted the error was not deliberate but stemmed from poor legal advice. “The tax system is a mess, stamp duty particularly messy, and the higher rate for additional properties beyond messy,” said Dan Neidle, founder of Tax Policy Associates, who expressed some sympathy for her. “So, I’m generally forgiving of people who make mistakes.”
However, critics argued her position was untenable. Opposition parties and right-leaning tabloids branded her a hypocrite, citing her record of attacking Conservative ministers over similar controversies. During Labour’s years in opposition, Rayner had accused former health minister Jeremy Hunt of “sleaze” for exploiting a “Tory tax loophole,” and demanded the resignation of ex-chancellor Nadhim Zahawi after his £5 million tax settlement.
Initially, Starmer defended his deputy, but his support waned as public anger grew. With the UK facing a housing crisis and Labour considering higher property taxes, defending Rayner became increasingly difficult.
Her departure deprives Labour of one of its most recognisable figures. Known for her forthright style, working-class background, and strong northern accent, Rayner was seen as a bridge within the party and a political counterweight to the more reserved Starmer.
Raised in poverty on the outskirts of Manchester, Rayner became a mother at 16, later working as a carer and trade union representative before entering politics. Her unpolished, relatable image—dancing at Pride marches, partying in Ibiza, and even being photographed vaping in an inflatable canoe—endeared her to younger Labour supporters.
But the Hove property became her undoing. Rayner argued she had sold her share of her Manchester home, placing it in trust for her children using funds from a medical compensation award after her son was born with lifelong disabilities. Still, the controversy snowballed into a national scandal.
Her resignation comes as Labour faces growing pressure from Reform UK, the anti-immigration party now leading national opinion polls and staging a major conference in Birmingham. Analysts suggest her downfall caps a bruising summer for Labour and could weaken Starmer further, even as some insiders believe he may quietly welcome the exit of his closest rival.
