Lead
On Sept. 5, 2025 in London, Prime Minister Keir Starmer announced a Cabinet reshuffle after Deputy Prime Minister Angela Rayner resigned following an inquiry finding she failed to meet ministerial standards over a stamp duty error on a recent property purchase, prompting several senior portfolio moves.
Key Takeaways
- Angela Rayner resigned as deputy prime minister and as deputy leader of Labour after an independent report found she breached the ministers’ code.
- Foreign Secretary David Lammy was appointed deputy prime minister and took on the justice brief.
- Yvette Cooper moved from Home Office to Foreign Secretary; Shabana Mahmood became Home Secretary.
- Treasury chief Rachel Reeves remains in post, leaving three of the top offices below the prime minister filled by women.
- Rayner will return to the back benches as a Member of Parliament and referred herself to the independent adviser on ministers’ standards.
- Reports indicated the stamp duty issue related to an £800,000 property purchase and suggested a potential tax shortfall around £40,000.
Verified Facts
Angela Rayner submitted her resignation to Prime Minister Keir Starmer on Sept. 5, 2025 after Laurie Magnus, the independent adviser on ministers’ standards, delivered a report concluding she had breached the ministerial code by not seeking sufficiently specific advice on a recent apartment purchase in Hove, on England’s south coast. The adviser said she had acted in good faith but nonetheless failed to meet the code’s requirements.
Starmer accepted the resignation and immediately announced a reshuffle. David Lammy moved from foreign secretary to become deputy prime minister and justice secretary. Yvette Cooper was appointed foreign secretary, while Shabana Mahmood was named home secretary. Rachel Reeves retained the Treasury role.
The property in question was reported to have been purchased for approximately £800,000. Media reports and calculations cited in the inquiry suggested Rayner may have underpaid stamp duty by about £40,000, a point noted in public reporting and discussed in the adviser’s review.
Context & Impact
Rayner has been a prominent and popular figure within Labour, noted for her plain-speaking style and personal story from teenage single mother to senior politician. Her resignation removes a high-profile voice who helped Labour connect with parts of the electorate where the party has faced challenges since its July 2024 election victory.
The move reshapes the government’s public face: Lammy brings experience on foreign affairs and race issues, while Cooper returns to international diplomacy after a long ministerial career. Mahmood’s move to the Home Office puts a trusted ally in charge of immigration and policing, areas where the government has faced scrutiny.
Politically, the reshuffle is intended to steady the administration after recent policy missteps and declining public support on welfare and immigration. It also raises questions about succession inside Labour, as Rayner had been widely viewed as a potential future leader.
Immediate practical effects
- Policy continuity at the Treasury with Rachel Reeves retained.
- Quick transitions required at Home Office and Foreign Office ahead of international engagements.
- Labour to hold an internal contest to replace Rayner as deputy party leader.
Official Statements
I take full responsibility for this error. It was never my intention to do anything other than pay the right amount.
Angela Rayner, resignation letter
I have nothing but admiration for you and huge respect for your achievements in politics.
Keir Starmer, letter to Angela Rayner
Unconfirmed
- Conservative leader Kemi Badenoch and others have publicly accused Rayner of deliberately dodging tax; those political accusations remain contested and are framed as partisan claims.
- Some media calculations on the exact stamp duty shortfall differ; the £40,000 figure has been widely reported but is based on the published purchase price and typical SDLT calculations.
Bottom Line
Starmer’s rapid reshuffle aims to limit disruption and project stability, but the loss of Rayner’s political reach may complicate Labour’s efforts to regain momentum with voters who valued her direct style. The party now faces an internal leadership replacement process and must manage public confidence while senior ministers settle into new roles.