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Angela Rayner has quit as Deputy Prime Minister and Housing Secretary after a row over stamp duty tax.
Rayner came under scrutiny this week over her property ownership and tax details.
The Ashton-under-Lyne MP admitted on Wednesday she had underpaid stamp duty on her £800,000 seaside flat in Hove.
Rayner said previously she was sorry for the ‘error,’ which she ‘deeply’ regrets.
She vowed to resolve ‘this matter fully and providing the transparency that public service demands.’
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But the mistake has now cost her the top job after it became a thorn for the Prime Minister, who has been struggling with plummeting popularity ratings, with the rise of Reform looming in the background.
It is understood that Rayner has stepped down shortly after the ethics watchdog, Sir Laurie Magnus, handed in its findings to the Prime Minister this morning.
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.’
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.
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.
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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