Angela Rayner resigns after underpaying tax on Hove flat

Angela Rayner has resigned as housing secretary and deputy prime minister two days after admitting she underpaid the stamp duty due on her £800,000 flat in Hove.

She has also stepped down as deputy Labour leader, a position to which she was elected by party members.

Her departure comes after the prime minister’s ethics adviser Sir Laurie Magnus said Rayner had “acted with integrity” but concluded that she had breached the ministerial code.

In his report, he said she did seek legal advice when buying the property, but failed to seek further expert tax advice as recommended.

Writing to the PM, Rayner said she accepted she “did not meet the highest standards” when purchasing her property.

“I deeply regret my decision to not seek additional specialist tax advice given both my position as housing secretary and my complex family arrangements.”

Rayner said she took “full responsibility for this error”, adding: “It was never my intention to do anything other than pay the right amount.”

Her resignation is expected to trigger a big reshuffle of ministers at the top of government.

In a handwritten reply to Rayner, Sir Keir said: “Although I believe you have reached the right decision, it is a decision which I know is very painful for you.

“You have given your all to making the Labour government a success and you have been a central part of our plan to make Britain fairer for working families.

“On a personal note, I am very sad to be losing you from the government. You have been a trusted colleague and a true friend for many years. I have nothing but admiration for you and huge respect for your achievement in politics.”

He concluded that Rayner would remain “a major figure” in the Labour Party.

Conservative leader Kemi Badenoch said: “Angela Rayner is finally gone. But it’s only because of Keir Starmer’s weakness that she wasn’t sacked three days ago.”

Rayner had been on the Labour frontbenches since 2015 and took on her government jobs in July 2024, when Labour won the general election.

Her resignation leaves a big hole at the top of government, both as deputy PM and in her role at the housing department where she was responsible for delivering one of Labour’s key pledges – to build 1.5 million homes by the end of the Parliament.

On Wednesday, Rayner acknowledged that she had not paid enough tax when buying her East Sussex flat but said this was a “mistake” resulting from legal advice that had failed to “properly take account” of her circumstances.

She said she had contacted HMRC to work out the additional tax she needed to pay and referred herself for investigation by Sir Laure Magnus, the PM’s standards adviser.