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UK Deputy Prime Minister Angela Rayner Resigns Over Tax Controversy

9/5/2025
In a stunning political move, UK Deputy Prime Minister Angela Rayner resigns after a tax error on her recent property purchase. Despite acting in good faith, she acknowledged her responsibility in the matter. Prime Minister Keir Starmer expresses sadness over her departure.
UK Deputy Prime Minister Angela Rayner Resigns Over Tax Controversy
Angela Rayner resigns as UK Deputy Prime Minister following a tax error on her property purchase. Prime Minister Starmer expresses sadness over her decision.

U.K. Deputy Prime Minister Angela Rayner Resigns Over Tax Error

LONDON (AP) — In a significant political development, U.K. Deputy Prime Minister Angela Rayner announced her resignation on Friday, following an independent inquiry that revealed her failure to meet the standards expected of government ministers regarding a tax error linked to her recent property purchase. Rayner, who admitted earlier in the week to not paying sufficient tax on an apartment she acquired in Hove, located on England’s picturesque south coast, acknowledged that she should have sought more precise advice. However, she emphasized that the inquiry concluded she acted in good faith.

Rayner Takes Responsibility for Tax Oversight

In her resignation letter addressed to Prime Minister Keir Starmer, Rayner stated, “I take full responsibility for this error.” She reiterated her intention was always to pay the correct amount of tax. Starmer expressed his sadness at her decision but praised her for making the right choice to step down. “I have nothing but admiration for you and huge respect for your achievements in politics,” he remarked in a handwritten letter, signifying his deep regard for her contributions.

Independent Inquiry Findings

Rayner will continue to serve as a U.K. lawmaker from the back benches. On Wednesday, she referred herself to the independent adviser on ministerial standards, Laurie Magnus, who subsequently delivered his report to Starmer on Friday. While Magnus acknowledged that Rayner had “acted with integrity and with a dedicated and exemplary commitment to public service,” he expressed “deep regret” over her breach of the ministers’ code of conduct.

Understanding the Tax Error

In the U.K., property purchases incur levies, with higher rates applied to more expensive homes and secondary residences. Reports indicate that Rayner may have saved £40,000 (approximately $54,000) by failing to pay the requisite levy, known as stamp duty, on her £800,000 ($1 million) property purchase. Rayner, 45, explained that her “complex living arrangements,” stemming from her divorce in 2023 and her son’s “lifelong disabilities,” contributed to her oversight regarding the tax.

The Impact of Media Pressure

In her resignation letter, Rayner also mentioned the “significant toll” that ongoing media scrutiny has taken on her family, indicating the personal strain that has accompanied her professional challenges. Her journey from a teenage single mother to a trade union official, and ultimately to Deputy Prime Minister, is a remarkable narrative within British politics, marked by resilience and determination.

Political Ramifications and Future Prospects

Angela Rayner's candid and straightforward approach has often contrasted sharply with the more pragmatic style of Prime Minister Starmer, making her a valuable asset in connecting with segments of the public that Starmer has found challenging to engage. As the Labour government’s housing spokesperson, she has been vocally critical of tax evasion, particularly targeting the previous Conservative administration, which Labour replaced in July 2024. Her previous statements had opened her to accusations of hypocrisy, with current Conservative leader Kemi Badenoch asserting that Rayner’s position had become “untenable for days.” Badenoch stated, “The truth is simple, she dodged tax,” and accused Rayner of dishonesty.

Labour Party Leadership Changes

Angela Rayner is a highly regarded member of the Labour Party, and her resignation as Deputy Prime Minister also includes stepping down as the party's deputy leader, prompting the need for a new selection process. In light of Rayner’s departure, Starmer is expected to undertake a cabinet reshuffle, hoping to shift the political agenda forward after a period of intense speculation surrounding her future.

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