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Angela Rayner Resigns as UK Deputy PM Over Tax Error

In a dramatic political development, UK Deputy Prime Minister Angela Rayner resigned on Friday after admitting to a tax error related to a property transaction. Her departure marks the eighth ministerial exit from Prime Minister Keir Starmer’s government and is widely seen as the most damaging blow to his leadership yet.
Rayner, 45, acknowledged underpaying tax after selling her share of a family home in northern England to a trust established for her son, who has life-long disabilities, before purchasing a flat in Hove. She initially believed the move exempted her from paying the higher rate of tax on second homes, but later admitted this was a mistake. “I deeply regret my decision to not seek additional specialist tax advice… I take full responsibility for this error,” Rayner wrote in her resignation letter.

Starmer Saddened but Accepts Resignation

Prime Minister Keir Starmer, who had earlier defended Rayner when allegations first surfaced, said he was “very sad” to see her go but acknowledged that she made the right call. Her exit is particularly significant because Rayner was not only his deputy but also one of Labour’s most popular figures, often seen as a bridge between the party’s left and centrist factions.

Rayner’s emotional resignation followed an independent ethics inquiry into her tax conduct. In an interview, she appeared close to tears as she spoke about her decision to transfer property to her son’s trust, stressing it was made with family welfare in mind, not to evade taxes.

A Rising Star’s Fall

Rayner’s political career has been remarkable. Rising from a working-class background and becoming a mother as a teenager, she climbed the ranks of the Labour Party to hold one of Britain’s highest offices. Frequently mentioned as a potential successor to Starmer, her resignation has shocked both supporters and critics.

She is the most senior minister to resign under Starmer, who is already struggling with declining poll numbers and pressure from Nigel Farage’s Reform UK party. According to UK government records, Starmer’s administration has now suffered more resignations outside of routine reshuffles than any prime minister since 1979.

Mounting Challenges for Starmer

The Labour government is currently trailing behind Reform UK in voter surveys. Starmer has been battling perceptions of hypocrisy after criticisms about ministers accepting expensive gifts from donors, including concert tickets and clothing. The loss of his deputy intensifies these struggles, leaving his leadership wounded just as Britain approaches a crucial budget announcement expected to include fresh tax rises.

Political analysts suggest Rayner’s resignation could deepen divisions within Labour. She had been instrumental in keeping the party united, balancing the demands of its traditional working-class base with the centrist agenda Starmer has tried to push forward. Her departure could embolden critics and create space for rivals within the party.

Looking Ahead

Starmer, who returned from a summer break this week, had hoped to showcase strength with a cabinet reshuffle and a renewed focus on economic strategy. Instead, his plans have been overshadowed by Rayner’s exit and a growing debate over free speech, amplified by Nigel Farage’s recent attacks on Labour policies.

With eight ministers gone — five due to allegations of wrongdoing — Starmer faces one of the toughest challenges of his premiership. Whether Labour can recover from this turbulence and regain public trust remains uncertain, but Rayner’s resignation is likely to leave a long-lasting scar on the government’s image.

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