UK deputy PM, Angela Rayner, resigns amid tax row

British Prime Minister Keir Starmer appointed a new deputy prime minister, foreign secretary, and home secretary on Friday following the resignation of Angela Rayner.

Starmer named David Lammy, previously the foreign secretary, as deputy prime minister. Yvette Cooper, who had been home secretary, moved to the Foreign Office, while Shabana Mahmood was shifted from justice secretary to home secretary.

The reshuffle went further than expected. Rayner’s departure over a tax issue forced Starmer to act quickly and end more than a week of speculation. Britain’s independent standards adviser ruled that she had breached the ministerial code by failing to pay the correct tax.

“Angela is a ‘big beast’ and hard to replace,” one Labour lawmaker said, adding that the new appointments were “sound” if not exciting.

Lammy’s promotion meant giving up his foreign secretary post and moving Mahmood from justice. Cooper, a senior Labour figure since the Gordon Brown government, now takes on foreign affairs after her time overseeing migration policy.

Mahmood, 44, is regarded in Labour as a “safe pair of hands” known for making firm decisions at justice.

According to Reuters, Loyalty is important for Starmer, who has already seen more ministerial resignations early in his term than any other British prime minister in nearly 50 years. “There is a sense at the moment that they don’t know what they are doing and what they stand for,” said Chris Hopkins of polling firm Savanta.

Rayner, 45, became the eighth and most senior minister to leave Starmer’s team. Her exit was seen as the most damaging yet, after Starmer initially defended her against claims she avoided £40,000 ($54,000) in tax.

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In her resignation letter, Rayner apologised to Starmer. “I deeply regret my decision to not seek additional specialist tax advice,” she wrote.

She also gave up her role as deputy Labour leader, with Lammy now viewed as the leading candidate to succeed her.

The standards adviser found she broke the ministerial code by ignoring a warning in legal advice she had relied on to seek expert guidance about her finances.

Her resignation has increased pressure on Starmer, with Labour now trailing Nigel Farage’s Reform UK party in some polls. Starmer also faces tough decisions on spending and tax, while the party has been criticised for accepting costly gifts from donors and for abandoning welfare cuts.

Speaking at Reform UK’s party conference in Birmingham, Farage brought forward his speech to comment on Rayner’s departure. He said Labour was in “deep crisis” and suggested an election could come as early as 2027, despite the government’s mandate running until 2029. “Despite all the promises that this would be a new, different type of politics, is as bad, if not worse, than the one that went before,” he told supporters.

Rayner had registered a new home in Hove, southern England, as her main residence after transferring her share of her family home in northern England into a trust for her disabled son.

She said she believed she would not have to pay the higher tax rate applied to second homes. After reports raised questions, she sought further advice, admitted an error, and agreed to pay the additional tax.

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