Angela Rayner Resigns Over Tax Misstep After Ethics Inquiry

London, Sep 5 (PTI) - Angela Rayner tendered her resignation as the UK's Deputy Prime Minister and Housing Secretary following a fast-tracked independent ethics investigation. The inquiry concluded that Rayner had neglected to pay the appropriate tax on a recently acquired property.

The 45-year-old prominent Labour Party leader stepped down after it was determined she breached the Ministerial Code of Conduct by failing to obtain specialized tax advice to ensure accurate stamp duty payment for her property located on the south coast of England.

British Prime Minister Keir Starmer, who is now orchestrating a mandatory Cabinet reshuffle, expressed regret over the resignation of his senior-most minister. “You were right to refer yourself to the Independent Adviser on Ministerial Standards and right to act on his conclusions,” Starmer remarked in an unusually handwritten letter responding to Rayner's resignation.

“On a personal note, losing you from the Government is a significant loss. You have been a trusted colleague and true friend for many years. I hold nothing but admiration and immense respect for your political achievements,” he added, noting that Rayner will continue to be a "major figure" in the Labour Party from the backbenches.

Sir Laurie Magnus, Starmer's Independent Adviser on Ministerial Standards, informed him that Rayner failed to meet the “highest possible standards of proper conduct,” thereby violating the Ministerial Code of Conduct.

Rayner, Labour's Member of Parliament for Ashton-under-Lyne in northern England, who also served as the Secretary of State of the Ministry of Housing, Communities, and Local Government, expressed her deep regret for her decision not to seek further specialist tax advice. “It was never my intention to do anything other than pay the correct amount. I must also acknowledge the significant toll ongoing media pressure is having on my family,” she stated in her resignation letter to the Prime Minister.

The letters were made public by 10 Downing Street, along with a letter from Laurie Magnus to Starmer explaining his "highly unfortunate" conclusion. “Rayner believed she relied on the legal advice provided to her, but she regrettably overlooked the caution that it was not expert tax advice and recommended seeking such expertise,” he wrote.

He added, “I believe Ms. Rayner acted with integrity and demonstrated exemplary commitment to public service. However, her unfortunate oversight in settling her stamp duty liability at the correct level, revealed only after public scrutiny, leads me to advise you that she cannot be deemed to meet the ‘highest possible standards of proper conduct’ as per the Code.”

“Therefore, with deep regret, I must advise you that the Code has been breached in this instance.” Earlier this week, amid intense media coverage, Rayner disclosed a complex arrangement with her ex-husband regarding the care of her disabled son, involving another property which remains a family home. In England, homebuyers must pay an additional surcharge when purchasing a second property.

Initially, Rayner classified her new seaside flat in Hove as a primary residence, subject only to the basic stamp duty rate. However, considering the additional family home held in trust for her son, it was determined she owed an estimated £40,000 more in taxes than initially calculated.

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