Deputy Prime Minister Angela Rayner resigned on Sept. 5, 2025, after admitting she underpaid stamp duty on a second home bought in May 2025 in Hove. Her departure removes a prominent Labour figure from Keir Starmer’s cabinet and intensifies political pressure on a government already slipping in the polls.
Key Takeaways
- Angela Rayner resigned as deputy prime minister, housing minister and deputy Labour leader on Sept. 5, 2025.
- She bought an Hove apartment for £800,000 in May 2025 and paid £30,000 in stamp duty rather than the higher £70,000 rate, leaving a shortfall of about £40,000.
- Rayner says she was misadvised and that complications around the sale of her Greater Manchester home and a children’s trust contributed to the error.
- Her resignation weakens Labour politically amid rising support for Reform UK in national polls.
- Keir Starmer initially defended Rayner but accepted her decision after growing media and political pressure.
- Tax experts note the complexity of the stamp duty rules but also point to a perception problem given Rayner’s past criticisms of Conservative figures over tax conduct.
Verified Facts
Rayner announced her resignation in a letter to Prime Minister Keir Starmer on Sept. 5, 2025, saying intense media scrutiny had made remaining in office “unbearable” and that her family’s privacy had been exposed. She stepped down from three roles: deputy prime minister, housing secretary and deputy leader of the Labour Party.
The property at the centre of the controversy was purchased in May 2025 for £800,000. Rayner paid £30,000 in stamp duty; the higher rate for additional properties would have been about £70,000, creating an unpaid balance of roughly £40,000. Rayner has said she was advised she did not need to pay the higher rate because she had sold her share in her Greater Manchester home and placed proceeds into a trust for her children. That trust was funded from a medical compensation payment following complications at her son’s birth.
| Item | Amount |
|---|---|
| Purchase price (May 2025) | £800,000 |
| Stamp duty paid | £30,000 |
| Higher rate due (approx.) | £70,000 |
| Shortfall | £40,000 |
Observers and some tax professionals acknowledged that UK stamp duty rules, especially for second properties and trusts, can be complex. Still, critics highlighted the political optics: Rayner had previously attacked Conservative politicians for tax arrangements and used the language of “sleaze” when challenging their conduct in office.
Context & Impact
Labour won a large majority in July 2024 but has struggled with public confidence since. Polls in mid-2025 showed growing support for the anti-immigration Reform UK party, which has been leading national surveys and holding a national conference in Birmingham as the resignation unfolded.
Rayner’s public profile — shaped by her working-class upbringing on the outskirts of Manchester, early motherhood at 16, work as a carer and as a union representative — made her a popular and blunt-speaking figure within Labour and among younger voters. Her exit removes a bridge to more working-class and northern constituencies.
Practically, the resignation forces a reshuffle of the housing brief and the deputy party role, and it hands opponents a fresh line of attack on Labour’s conduct ahead of upcoming political battles.
Official Statements
“While I rightly expect proper scrutiny on me and my life, my family did not choose to have their private lives interrogated and exposed so publicly,” Rayner wrote in her resignation letter.
Angela Rayner
Keir Starmer said he was “very sad” her time in government had ended this way and described her as a “trusted colleague and true friend.”
Keir Starmer
Unconfirmed
- Speculation that Starmer privately welcomed the removal of a potential internal rival remains unproven and is based on analyst commentary rather than direct evidence.
- Reports that specific advisers gave incorrect written legal advice have not been independently verified in full public documents.
Bottom Line
Angela Rayner’s resignation is both a personal setback for a high-profile Labour figure and a political problem for Keir Starmer’s government. The episode underscores how tax technicalities can become major political liabilities, especially when they intersect with prior rhetoric on public integrity. Expect a rapid ministerial replacement, fresh scrutiny of ministerial finances, and intensified opposition focus on Labour’s judgment ahead of future contests.