Angela Rayner resigns as deputy prime minister and housing secretary after underpaying tax on Hove flat

Angela Rayner resigned from her roles as deputy prime minister, housing secretary and deputy Labour leader after acknowledging she had not paid enough tax on a flat she bought in Hove.

The property, valued at about £800,000, became the subject of an inquiry by the prime minister's ethics adviser, Sir Laurie Magnus, who concluded that Rayner had "acted with integrity" but nonetheless breached the ministerial code by failing to follow recommended tax advice. Magnus said Rayner did obtain legal advice when purchasing the property but did not seek further specialist tax advice as recommended.

In a letter to the prime minister accompanying her resignation, Rayner said she accepted she "did not meet the highest standards" when buying the property and that she "deeply regret[ted] my decision to not seek additional specialist tax advice given both my position as housing secretary and my complex family arrangements." She added that she took "full responsibility for this error" and that it was "never my intention to do anything other than pay the right amount."

Her departure from the cabinet also meant stepping down as deputy leader of the Labour Party, a vacancy expected to prompt a new deputy leadership election among party members. The resignation came after the ethics review and represents a political setback for the prime minister, who had reshuffled his Downing Street team earlier in the week.

The ethics adviser's report did not allege deliberate wrongdoing; it said Rayner had acted with integrity but had breached the ministerial code by failing to obtain the additional tax advice suggested by advisers reviewing her purchase. The ministerial code sets standards for ministers' conduct and can require resignation when breaches are found.

Rayner's decision to resign follows established practice in British politics, where breaches of the ministerial code have in the past led to departures from government posts. The Labour Party will now move to organise a contest to elect a new deputy leader, a process that is determined by the party's internal rules and membership ballot.

Officials and party figures have yet to announce a timetable for the deputy leadership contest or for appointing a replacement housing secretary. The ethics review and Rayner's resignation will also prompt renewed attention on ministers' financial declarations and the processes by which politicians obtain specialist advice when dealing with complex personal arrangements.