'Hypocrite' Angela Rayner quits government over stamp duty storm

The Deputy Prime Minister resigned after Sir Keir Starmer’s ethics adviser, Sir Laurie Magnus, found that she broke the ministerial code by underpaying stamp duty on her £800,000 seaside flat and, as such, had not met the “highest possible standards of proper conduct”.

Her departure as Deputy Prime Minister, Deputy Leader of the Labour Party, and Secretary of State for Housing, Communities and Local Government means Sir Keir will begin a major reshuffle of his Cabinet.

The 45-year-old will stay on as MP for Ashton-under-Lyne.

In her resignation letter to the Prime Minister, Ms Rayner wrote: "I have always taken my responsibilities as Deputy Prime Minister, Secretary of State for Housing, Communities and Local Government, as well as a Member of Parliament with the utmost seriousness.

"I have long believed that people who serve the British public in government must always observe the highest standards, and while the Independent Adviser has concluded that I acted in good faith and with honesty and integrity throughout, I accept that I did not meet the highest standards in relation to my recent property purchase.

"I deeply regret my decision to not seek additional specialist tax advice given both my position as Housing Secretary and my complex family arrangements. I take full responsibility for this error."

Read more: Rayner firm claims it has been made 'scapegoat' over tax advice as judgement day looms for Deputy PM

Read more: Angela Rayner’s controversial seaside flat vandalised - as Deputy PM brands 'tax evader' graffiti 'beyond the pale'

In his handwritten response, Sir Keir Starmer told her "you will remain a major figure in our party" and will "continue to fight for the causes you care so passionately about" as she resigned.

Sir Laurie found that Ms Rayner "did not heed the caution" in legal advice she received when buying her Hove flat.

The independent ethics adviser said in his letter: "She believed that she relied on the legal advice she had received, but unfortunately did not heed the caution contained within it, which acknowledged that it did not constitute expert tax advice and which suggested that expert advice be sought.

"I am conscious of the acute challenges ministers face – perhaps uniquely – in managing the demands of their personal lives and their public responsibilities.

"However, the responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves."

She had referred herself for an ethics investigation on Wednesday, admitting that she had not paid enough stamp duty on the purchase of the flat in Hove.

She has faced mounting pressure to stand down over recent days after admitting she underpaid stamp duty on a flat she bought in Hove earlier this year.

She claims she made a mistake resulting from incorrect advice from a conveyancer and two trust law experts who told her she did not need to pay the higher rate reserved for second home purchases.

But on Thursday, conveyancing firm Verrico and Associates said its lawyers “never” gave Ms Rayner tax advice and were being made “scapegoats”.

The founder of the small high street firm, based in Herne Bay, Kent, added: “We believe that we did everything correctly and in good faith. Everything was exactly as it should be.

“We probably are being made scapegoats for all this”.

Sir Keir Starmer is conducting a reshuffle of his cabinet.

It is his first major reshuffle since taking office in July last year.

It is understood that Rachel Reeves will be staying as chancellor.

Earlier this week, vandals sprayed the front of Hove property and the surrounding areas with profanity and the words 'tax evader’ after she admitted not paying enough stamp duty on the property.

Reform’s Zia Yusuf has told LBC that Angela Rayner is guilty of “hypocrisy” after “hounding out” politicians over their own tax affairs.

Mr Yusuf told Natasha Clark: "I think it's really important that politicians play by the rules. That's the key thing.

"And if you look at Angela Rayner, she by her own admission has said that she has underpaid tax. It's difficult to have sympathy when she has personally hounded out of office many, many politicians on the basis of this exact thing.

"So we talk about hypocrisy. That's exactly what it is".

Tory leader Kemi Badenoch has said Angela Rayner’s position was “untenable for days” after the Deputy Prime Minister admitted she underpaid stamp duty on a flat she bought in Hove earlier this year.

In a video posted on X, Ms Badenoch said: "Angela Rayner is finally gone. It says everything about Keir Starmer’s weak leadership that he had to wait for a report before acting.

"The truth is simple, she dodged tax. She lied about it. Her position was untenable for days.

"Keir Starmer once promised honesty and integrity in politics, but when faced with this test, he hesitated: no principles, no backbone.

"We Conservatives forced this investigation and were vindicated. But this isn’t the end. Questions remain. What did Keir Starmer know and when did he mislead the public?"