On Sept. 5, 2025, Deputy Prime Minister Angela Rayner resigned after an independent ethics adviser found she had underpaid stamp duty on a Hove apartment, ending a two-week political controversy and removing a close ally of Prime Minister Keir Starmer.
Key Takeaways
- Angela Rayner resigned on Sept. 5, 2025 after an ethics inquiry found she underpaid stamp duty on a seaside apartment in Hove.
- The transaction involved a complex arrangement linked to a trust established in 2020 for her disabled son and a house near Manchester jointly owned with her ex-husband.
- Rayner notified tax authorities that additional stamp duty was owed and described the shortfall as an innocent mistake.
- An independent ethics adviser concluded the matter breached the ministerial code, prompting the resignation.
- The departure removes a key bridge to Labour’s left and increases pressure on Prime Minister Keir Starmer amid poor polling against Reform U.K.
Verified Facts
Ms. Rayner purchased a holiday flat in Hove in May 2025. Following media scrutiny, she informed tax authorities that she owed extra stamp duty after legal advice indicated the property should have been treated as a second home.
The arrangement at the center of the inquiry involved a trust created in 2020 to secure a stake in a house near Manchester for her disabled son. Ms. Rayner and her ex-husband, whom she divorced in 2023, alternated living at that Manchester property while caring for their child.
An independent ethics adviser reviewed the transaction and found that Ms. Rayner had not met the standards expected of a cabinet minister by underpaying the tax. That finding was the formal basis for her decision to step down from the deputy prime minister role, which included housing responsibilities.
Context & Impact
The resignation compounds difficulties for Prime Minister Keir Starmer, whose government has faced criticism over slow economic growth and shifting policy signals. Rayner had been regarded as a prominent ally and a conduit to Labour’s left wing.
Public opinion polls at the time showed Labour trailing the anti-immigration party Reform U.K. by nearly double digits, and Ms. Rayner’s exit removes a senior figure who helped stabilize some party factions.
Practically, the government must now reassign Rayner’s housing brief and manage potential political fallout as the opposition seizes on the episode. The case also highlights scrutiny of ministers’ personal finances and property arrangements.
Official Statements
“I contacted the tax authorities and notified them that I owed additional stamp duty,” Ms. Rayner said, calling the shortfall an innocent mistake linked to complex family arrangements.
Angela Rayner
Unconfirmed
- No official finding of deliberate wrongdoing beyond the ethics adviser’s conclusion of a breach of the ministerial code; Rayner and her advisers characterize the underpayment as accidental.
- Details about specific legal advice and the timing of consultations with advisers are still being clarified in media reports.
Bottom Line
Ms. Rayner’s resignation resolves a high-profile ethics controversy but deprives the Starmer government of a senior figure who linked the leadership to Labour’s left. The episode underscores growing scrutiny of ministers’ finances and may shape how the government manages ethical compliance going forward.