UK Deputy PM Angela Rayner Resigns Over Tax Scandal, Triggering Cabinet Reshuffle
In a critical development in UK politics, Deputy Prime Minister and Secretary of State for Housing Angela Rayner has resigned following an ethics inquiry ruling on a property tax error. The revelation of Rayner's tax underpayment and her subsequent resignation has led to a broader cabinet reshuffle by Prime Minister Keir Starmer.
The Scandal and Resignation
Rayner, who was also the deputy leader of the Labour Party, admitted to underpaying property tax on a new home. She came under scrutiny for failing to pay a £40,000 stamp duty surcharge on an apartment she bought in Hove, leading to an investigation by the independent ethics watchdog. The probe concluded that Rayner had breached the Ministerial Code of Conduct, which marked the end of her tenure as deputy prime minister and deputy leader of her party.
South China Morning Post reported that Rayner's resignation is the eighth ministerial departure from Starmer’s team and the most serious yet, especially considering Starmer had offered her his full support. Rayner stated, I deeply regret my decision to not seek additional specialist tax...
as she admitted to the error.
The Cabinet Reshuffle
The resignation has prompted a broader cabinet reshuffle, with the House of Commons leader and Scotland secretary also being sacked. The Guardian reported that Starmer gathered the entire staff of No 10 Downing Street to inform them of the next phase of government. This reshuffle was initially planned for the autumn but was brought forward in response to the Rayner scandal.
David Lammy has been appointed the new Deputy Prime Minister. Yvette Cooper is set to become the UK’s new foreign secretary, while Shabana Mahmood is expected to assume responsibility over the Home Office.
Reactions and Aftermath
The departure of Rayner, a powerful leader within the Labour Party, has triggered an intense internal election battle to find her successor. Her resignation has also sparked concerns over the future of Labour’s workers' rights package, with employment rights minister Justin Madders being sacked and union allies sidelined.
This development has also led to a rise in far-right Reform UK's gains in polls, causing concern for Starmer's Labour government. Darren Jones, the Chancellor of the Duchy of Lancaster, denied any instability in the Labour government amidst the reshuffle, asserting that it was quite normal
for administrations to have a reshuffle around this time.
Current Status
The scandal involving Angela Rayner and the subsequent reshuffle has presented a significant challenge for Starmer's government. However, the Prime Minister has sought to regain control with strategic appointments in key roles. While these events have caused ripples in the UK political landscape, it remains to be seen how the Labour government will navigate the aftermath of this controversy.