David Lammy has become the new Deputy Prime Minister hours after Angela Rayner quit the role over underpaid stamp duty tax.
The Prime Minister is wielding the political knife following Angela Rayner’s decision to resign from government.
The former deputy Labour leader stepped down after it was found she had broken the rules over stamp duty tax for her second home.
Yvette Cooper has been kicked out of the Home Office and appointed Foreign Secretary, with Shabana Mahmood becoming Home Secretary in a sweeping Cabinet reshuffle.
Starmer has used Rayner’s resignation to mix up his top team, moving key figures to new posts.
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David Lammy has been replaced at the Foreign Office and moved to the more junior post of Justice Secretary.
But he’s been given the prized position of Deputy Prime Minister to make up for it.
That job became vacant after Rayner took ‘full responsibility’ for her error ‘not to seek specialist tax advice’ and resigned.
On Wednesday, Labour MP for Ashton-under-Lynereferred herself to the ethics watchdog after admitting she had underpaid the tax on her £800,000 seaside flat in Hove, reportedly by as much as £40,000.
In a report, which was published this afternoon, ethics watchdog Sir Laurie Magnus said Rayner’s actions failed to meet the ‘highest possible standards of proper conduct’ over her failure to pay the correct amount.
Latest cabinet reshuffle news
Rayner’s resignation has triggered a shake-up across government.
Starmer begun by sacking a host of well-known politicians, including Lucy Powell as Leader of the House of Commons and Ian Murray as Scottish Secretary.
Chancellor Rachel Reeves is said to be safe in her job ahead of a crucial budget scheduled for November.
The other top jobs have all been moved around, however.
Yvette Cooper, who was in charge of the Home Office since the election last year, has now been taken up the job as Foreign Secretary.
Taking over the thorny issue of migration will be former Justice Secretary Shabana Mahmood, who won praise within government for her handling of the prisons crisis.
David Lammy replaces Mahmood at the Justice Department, but has also been handed the number two spot in political life – Deputy Prime Minister.
Starmer’s close ally Pat McFadden will take charge of a new ‘super ministry’.
It’s ‘super’ because he’ll be taking over the Department for Work and Pensions and the skills brief the Education Department.
Rayner also resigned from the position of Housing Secretary and will be replaced by former Environment Secretary Steve Reed.
Why has Angela Rayner resigned?
It is understood that Rayner has stepped down shortly after the ethics watchdog, Sir Laurie Magnus, handed in his findings to the Prime Minister this morning, concluding that she breached the ministerial code.
In her resignation letter to the Prime Minister, Rayner said the situation and scrutiny over her family has become ‘unbearable,’ which is why she has decided to step down.
You can read her full resignation letter below.
Angela Rayner resignation letter to Keir Starmer in full
Here is what Rayner wrote as she stepped down as the Housing Secretary and deputy Prime Minister:
‘Dear Keir,
‘Thank you for the personal and public support you have shown me in recent days. As you know, on Wednesday I referred myself to your Independent Adviser on Ministerial Standards, Sir Laurie Magnus, to conduct a thorough investigation into my personal financial circumstances after I became aware that it is likely I inadvertently paid the incorrect rate for Stamp Duty Land Tax (SDLT).
‘I have always taken my responsibilities as Deputy Prime Minister, Secretary of State for Housing, Communities and Local Government, as well as a Member of Parliament with the utmost seriousness. I have long believed that people who serve the British public in government must always observe the highest standards, and while the Independent Adviser has concluded that I acted in good faith and with honesty and integrity throughout, I accept that I did not meet the highest standards in relation to my recent property purchase.
‘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.
‘I must also consider the significant toll that the ongoing pressure of the media is taking on my family. While I rightly expect proper scrutiny on me and my life, my family did not choose to have their private lives interrogated and exposed so publicly. I have been clear throughout this process that my priority has, and always will be, protecting my children and the strain I am putting them under through staying in post has become unbearable.
‘Given the findings, and the impact on my family, I have therefore decided to resign as Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, as well as Deputy Leader of the Labour Party.
‘For a teenage mum from a council estate in Stockport to serve as the highest level of government has been the honour of my life. The challenges of government are nothing compared to the challenge of putting food on the table and getting a roof over our head when I brought up kids working as a home help. Too many people face the same across our country.
‘I’ve always known that politics changes lives because it changed mine. The last Labour government gave me the tools I needed to build a better life for me and my young son, and that’s why I’ve been working relentlessly from day one in government to do the same for the next generation. Every day I had in office, I worked to serve working class communities like the one that I grew up in, which are too often overlooked by those in power. I am proud that in every decision I made, I did it for them. I would never have become Deputy Prime Minister if not for the decisions taken by the last Labour Government, giving me a council house to support me, Sure Start to help raise my kids, and the security of a minimum wage – and I can only hope that the changes I made in government will have the same impact for young girls growing up on council estates like I did.
‘Through my Employment Rights Bill people across the country will receive the biggest uplift in workers’ rights in a generation. This landmark legislation will be game changing for millions of people stuck in insecure and low-paid work, giving them the dignity and security they don’t just need but also deserve. I am and will remain deeply proud of that legacy. I am so proud to have worked alongside the trade union movement, who have given me everything, to deliver that.
‘Our Renters’ Rights Bill will finally ban the oppressive rule of no-fault evictions and will reset the balance between renters and landlords through ground breaking protection for renters. Everyone deserves to live in a safe and decent home, and I know this legislation will deliver that for millions of people across the country.
‘The Planning and Infrastructure Bill will also be instrumental in getting the homes so many people across this country need built, and I am so proud that at the Spending Review we announced the biggest investment in social and affordable housing in a generation with the overwhelming amount of this going to genuinely social rent homes.
And last week, I introduced the English Devolution Bill to Parliament. The largest single package of devolution from any Westminster government to local people across England. This landmark legislation will permanently change the balance of power, giving true control to those with skin in game. We delivered an Elections Strategy which will mean 16 and 17 year olds getting the vote for the first time, as well as ambitious plans to ensure the most marginalised communities are registered to vote. We took steps to stabilise the broken foundations of local government and deliver the first genuinely fair funding review and the first multi-year settlement for a decade.
‘My department, through my excellent team of Ministers, has also provided the largest ever investment in homelessness prevention services to local authorities, to get Britain back on track to ending homelessness for good. We’ve worked relentlessly to bring an end to the building safety crisis and developed new measures to get peoples’ homes fixed quicker and hold rogue freeholders to account. We’ve also worked to boost community cohesion, tackle hate crime and reset the relationship with faith communities.
‘I have been lucky to work alongside the most talented group of Ministers who worked with dedication to deliver for working people. I thank Matthew Pennycook, Jim McMahon, Alex Norris, Wajid Khan and Sharon Taylor. I too am grateful to my brilliant parliamentary team, Harpreet Uppal, Mark Ferguson, and Gen Kitchen.
For me, being in office is the chance to change the lives of the people I grew up alongside. I will do whatever I can to continue doing so.
Thank you for your leadership and for your friendship. I will continue to serve you, our country and the party and movement I love in the weeks, months and years ahead.
‘Yours sincerely, The Rt. Hon. Angela Rayner MP Representing Ashton-under-Lyne, Audenshaw, Droylsden and Dukinfield Deputy Prime Minister, Secretary of State for Housing, Communities and Local Government’
Sir Laurie, the ethics watchdog, found that Rayner did breach the ministerial code and she failed to pay the correct amount of stamp duty.
‘It is deeply regrettable that the specific tax advice was not sought,’ he said in a statement.
Sir Laurie added that Rayner ‘acted with integrity and with a dedicated and exemplary commitment to public service.’
The Prime Minister said in his letter to Rayner in response to the resignation that he is ‘very sad’ that her time in government has ‘ended in this way.’
Do you think it was right for Angela Rayner to resign?
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Yes – fully agree
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No – she didn’t need to step down
He said it was right for her to refer herself to the independent watchdog.
Sir Keir continued: ‘Although I believe you have reached the right decision, it is a decision which I know is very painful for you.
‘You have given your all to making the Labour Government a success and you have been a central part of our plan to make Britain fairer for working families.
‘On a personal note, 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 is the living embodiment of social mobility.
‘Even though you won’t be part of the Government, you will remain a major figure in our party.’
Angela Rayner resignation reaction
Kemi Badenoch, who urged Sir Keir to sack her after the error emerged, said after the announcement: ‘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.’
David Bull, the chairman of Reform UK, fanned the flames over the row while speaking to a crowd at the party’s conference today: ‘The government is falling apart as we speak. Last week the prime minister announced phase two of his government. How’s that going, Keir? They are on the run from us, and ladies and gentlemen, Rayner has resigned. And let me tell you, one by one, we are taking every single one down.’
She has also been shown sympathy from Labour colleagues as the issue involves a deeply private matter relating to her family.
But others have said that there cannot be different rules for others.
Sir Ed Davey, the Lib Dem leader, said Rayner’s position had become ‘untenable,’ before urging the government to focus on ‘helping the millions of people’ struggling.
‘My sympathy was with her as the parent of a disabled child – I am the parent of a disabled child.
‘But you still have to follow the rules.’
Mark Whelan, the general secretary of Aslef union, praised Rayner for ‘her work to deliver the biggest uplift in workers’ rights in a generation,’ referring to the Employment Rights Bill.
He described her as ‘a genuine working-class trade unionist.’
Rayner explained the ‘error’ was due to incorrect advice from her lawyers, leading her to believe she was liable for only £30,000 stamp duty, the standard rate of tax for primary homes.
However, her legal team has since denied this, telling The Telegraph: ‘We did not and never have given tax or trust advice. It’s something we always refer our clients to an accountant or tax expert for.’
It has since emerged that the Hove flat is considered a second home, which incurs the higher stamp duty tax.
Reports claim the underpaid amount could be as much as £40,000.
The tax blunder came after she had removed herself from the deeds for her Ashton family home and transferred it into a trust, with her children as the beneficiaries.
Her teenage children, including her disabled son Charlie, live at the Ashton family home, while Rayner and her ex-husband take turns living there with them.
Top Labour figures, including Sir Keir and Chancellor Rachel Reeves, previously rallied to support Rayner, who was targeted by vandals.
The wall outside her Hove apartment was sprayed with ‘tax evader’ graffiti, which is now being investigated as criminal damage by the Sussex Police.
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