Angela Rayner quits after £40k stamp duty scandal as Labour on the brink

Angela Rayner has resigned after a row over underpaying stamp duty on a property. The Deputy Prime Minister, who is also Housing Secretary, has been at the centre of a furore over her new seaside flat in Hove. She has admitted underpaying £40,000 of stamp duty on the apartment bought earlier this year and an inquiry into whether she broke the ministerial code today presented its findings to the Prime Minister.

There had been speculation this morning that Ms Rayner was on the brink of resigning and it is now official that she has left the Government. Conservative leader Kemi Badenoch said: "Angela Rayner is finally gone. But it's only because of Keir Starmer's weakness that she wasn't sacked three days ago. Britain deserves better."

Ms Rayner has resigned as Deputy Prime Minister and Housing Secretary, which means Prime Minister Sir Keir Starmer will need to hold a reshuffle of his Cabinet. He must appoint a new Housing Secretary, which means he is likely to move other members of his Cabinet too. Sources suggested however that Chancellor Rachel Reeves will not be moved.

Ms Rayner will continue as MP for Ashton-under-Lyne but has also resigned as Deputy Leader of the Labour Party, which is a position she held separately from her government positions.

In her resignation letter to Sir Keir, Ms Rayner said: "I deeply regret my decision to not seek additional specialist tax advice given both my position as Housing Secretary and my complex family arrangements. I take full responsibility for this error. I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount."

Ethics watchdog Sir Laurie Magnus said Angela Rayner had "acted with integrity and with a dedicated and exemplary commitment to public service" but concluded she breached the ministerial code over her tax affairs. He said in a report presented to Sir Keir: "Accordingly, it is with deep regret that I must advise you that in these circumstances, I consider the Code to have been breached."

Sir Keir Starmer has told Angela Rayner "you will remain a major figure in our party" and will "continue to fight for the causes you care so passionately about" as she resigned.

The Prime Minister has previously said "of course" he will act on the findings of an ethics investigation conducted by his independent standards adviser into the tax affairs of his deputy.

Ms Rayner has been under mounting pressure in recent weeks after reports emerged she had saved £40,000 in stamp duty on a property purchase in Hove by not paying the higher rate reserved for additional home purchases.

She referred herself to independent adviser Sir Laurie Magnus and said she made a "mistake" in paying the standard rate, based on legal advice she received at the time.

Her resignation raises questions about Sir Keir's judgment after he appeared to suggest on Monday that she had done nothing wrong, and was the victim of a smear campaign.

Sir Keir was asked if Ms Rayner was the victim of a sexist and classist "briefing war", as some of her allies have claimed. He told BBC Radio 5 Live's Matt Chorley: "Angela came from a very humble background, battled all sorts of challenges along the way, and there she is proudly - and I'm proud of her - as our deputy prime minister."

Sir Keir added: "Angela has had people briefing against her and talking her down over and over again. It's a mistake, by the way."

Sources close to Ms Rayner said a conveyancer and two experts in trust law had all suggested the amount of stamp duty she paid on the East Sussex property was correct and she acted on the advice she was given at the time.

However her story unravelled after after the conveyancing firm, Verrico and Associates, on Thursday said its lawyers "never" gave Ms Rayner tax advice and were being made "scapegoats".

In a statement, managing director Joanna Verrico said: "We're not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these."

The founder of the small high street firm, based in Herne Bay, Kent, said it completed her stamp duty return "based on the figures and the information provided by Ms Rayner".