BIRMINGHAM, Sept 5, 2025 — Deputy Prime Minister Angela Rayner resigned on Friday after an independent adviser found she breached the ministerial code by failing to pay the correct property tax on a recent home transaction, a development that weakens Prime Minister Keir Starmer’s team.
Key Takeaways
- Angela Rayner resigned on Sept 5, 2025, after a finding that she breached the ministerial code.
- The case concerns a property sale and purchase connected to a trust for one of her sons and allegations she underpaid around 40,000 pounds in tax.
- Rayner also stepped down as a government minister and as deputy leader of the Labour Party.
- Independent adviser on ministerial standards concluded she failed to seek specialist tax advice as warned in legal guidance.
- Prime Minister Keir Starmer expressed personal sadness but accepted her decision; the departure is seen as a major political setback.
- Nigel Farage and Reform UK seized on the resignation at their conference, framing it as evidence of government crisis.
Verified Facts
The independent adviser on ministerial standards assessed that Rayner breached the ministerial code because she did not follow the clear instruction within legal advice to obtain specialist tax advice for a complex financial arrangement. The adviser said the Code was breached in these circumstances.
Rayner, 45, had sold her share of a family home in northern England into a trust set up for a son with lifelong disabilities and used the proceeds toward buying an apartment in Hove. She later acknowledged a mistake over the tax treatment and began taking steps to pay additional tax after further advice was sought.
Starmer initially offered public support when questions first arose but accepted the adviser’s finding and Rayner’s decision to resign. In his letter he described her as a trusted colleague and said he was very sad to be losing her from government.
Context & Impact
The resignation is the eighth ministerial departure from Starmer’s team since he took office and is the most senior loss so far. Observers say it is the most damaging of those exits because of Rayner’s role in bridging Labour’s internal factions and her wider public appeal.
Labour is already facing political pressure from Nigel Farage’s Reform UK, which used Rayner’s exit at its conference to argue the government is in crisis. Polling referenced in coverage suggested Reform had been gaining ground ahead of the resignation.
For Starmer, the challenge now includes repairing public confidence on standards and managing party unity ahead of difficult fiscal choices on spending and taxation. Some Labour figures expect a period of quiet from Rayner, though longer-term political consequences remain uncertain.
I deeply regret my decision to not seek additional specialist tax advice and take full responsibility for this error.
Angela Rayner
I am very sad to be losing you from the government. You will remain a major figure in our party.
Keir Starmer
Unconfirmed
- Whether Rayner will return to frontline politics or mount a future leadership challenge is speculative at this stage.
- Precise final tax settlement amount remains subject to confirmation as Rayner said she was taking steps to pay what was due.
Bottom Line
Rayner’s resignation after the adviser ruled she breached the ministerial code removes a key unifying figure from Labour’s front bench and hands political momentum to opponents at a sensitive time for the government. The episode focuses attention on ministerial standards and the need for clearer financial advice for officeholders.