Angela Rayner resigns as deputy prime minister over failure to pay enough tax

Angela Rayner has left the government after failing to pay enough stamp duty on a flat she bought in Hove, East Sussex.

Rayner, who was deputy prime minister, said she took “full responsibility” for her “error”.

A report from the ethics adviser found she had breached the ministerial code and “did not heed the caution” in the legal advice she had received.

In her resignation letter to Prime Minister Keir Starmer she said: “I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount.”

She said she “deeply regretted” her decision not to seek further specialist tax advice.

The prime minister said he was “very sad” Rayner’s time in government had ended in the way it had.

Rayner referred herself to the independent adviser on ministerial standards, Sir Laurie Magnus, earlier this week following newspaper reports that she had not paid enough tax.

She said she had sought advice from multiple sources on the property purchase and had been advised she did not have to pay a higher rate of stamp duty land tax (SDLT).

But Magnus's report highlighted that the advice was not from a tax expert, and did include a recomendation that Rayner seek specific tax advice. 

"If such expert tax advice had been received, as it later was, it would likely have advised her that a higher rate of SDLT was payable," Magnus's report states.

It adds that it was "deeply regrettable" that additional advice was not sought, concluding: "I believe Ms Rayner has acted with integrity and with a dedicated and exemplary commitment to public service.

"I consider, however, that her unfortunate failure to settle her SDLT liability at the correct level, coupled with the fact that this was established only following intensive public scrutiny, leads me to advise you that, in relation to this matter, she cannot be considered to have met the 'highest possible standards of proper conduct' as envisaged by the code.

"Accordingly, it is with deep regret that I must advise you that in these circumstances, I consider the code to have been breached."

Rayner has said she will pay the additional tax due, reported to be around £40,000, plus interest back.

She will now return to the backbenches and has also confirmed her resignation as deputy leader of the Labour Party.

This means a contest to replace her will take place in due course.

Starmer was already widely expected to undertake a reshuffle in the coming days. This was only to cover junior ministers but the resignation means the changes are likely to be much wider.

Responding to the Rayner's resignation letter, Starmer wrote: "I am very sad to be losing you from the government. You have been a trusted colleague and a true friend for many years.

"I have nothing but admiration for you and huge respect for your achievements in politics. I know that many people of all political persuasions admire that someone as talented as you are the living embodiment of social mobility.

"Even though you won't be part of the government, you will remain a major figure on our party."

The SNP has described the news as "yet another catastrophic blow" for the UK Government. 

The party's Westminster leader Stephen Flynn said: "The Labour Party is governing by chaos - with the prime minister's latest reset blown apart within days by more scandals, more failure and more resignations.

"Voters were promised change but under Starmer things have gone from bad to worse. The UK government has been beset by scandals and instability, the cost of living is soaring, poverty is at record levels, unemployment is at a four-year high, the UK economy has been downgraded, public finances are deteriorating - and the vast majority of people think the UK is in a bad state."