Labour leader Keir Starmer has publicly supported his deputy, Angela Rayner, after she revealed that she inadvertently paid less stamp duty tax on the purchase of her second home. The controversy centers on Rayner’s £800,000 coastal apartment in Hove, for which she avoided a £40,000 higher-rate stamp duty bill by transferring ownership of a family property in her Ashton-under-Lyne constituency out of her name. This maneuver meant the Hove flat was not classified as a second home, reducing her tax liability.
Rayner has since admitted the error, acknowledging the legal advice she had relied upon was incorrect. She has referred herself to the independent adviser on ministerial standards and stated her intention to pay any outstanding stamp duty demanded by HM Revenue & Customs (HMRC). In a candid interview, the Deputy Prime Minister said she considered stepping down but decided to remain in her position after consulting with her family.
“I was advised that the trust did not count for stamp duty purposes, but subsequent expert analysis showed that I remained the sole owner of the property. The trust was not set up to avoid tax, as some accusations claimed,” Rayner explained. She also highlighted the complexity added by a court order regarding confidentiality tied to her family situation, which was recently lifted to allow her to share full details.
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Keir Starmer defended Rayner during Prime Minister’s Questions, emphasizing her ongoing contributions, including her work on delivering 1.5 million new homes. He praised her resilience, highlighting her working-class background and the challenges she has overcome. Starmer urged critics to refrain from repeatedly undermining Rayner’s position.
However, Conservative MPs have called for a thorough ethics investigation and demanded Rayner’s resignation. Tory chairman Kevin Hollinrake argued that as Housing Secretary, Rayner’s tax affairs on property were especially concerning and raised doubts about her ability to continue in her role.
In response to calls for resignation, Rayner acknowledged the mistake but maintained she acted on the best advice at the time and is taking immediate steps to rectify the issue. The Labour deputy emphasized the importance of transparency and accountability in her statement.
The episode has sparked a broader debate about political accountability, legal advice, and ministerial standards within the Labour Party, placing Starmer’s loyalty and leadership under scrutiny as public opinion divides over the deputy prime minister’s future.