Deputy Prime Minister Angela Rayner faces a challenging political dilemma following revelations of tax underpayment on her £800,000 seaside property. In a recent interview, Rayner admitted to potentially saving £40,000 in stamp duty due to incorrect legal advice received during the property purchase in Hove, East Sussex.
Expressing deep regret over the error, Rayner, who also serves as the Housing Secretary, disclosed contemplating resignation discussions with her family. She has taken the initiative to refer herself to the Prime Minister’s independent adviser on ministerial interests and committed to repaying any outstanding tax obligations to HMRC.
Despite receiving support from Labour leader Keir Starmer, Rayner’s political future hangs in uncertainty, awaiting an investigation by Sir Laurie Magnus, the PM’s ethics adviser. The probe will scrutinize whether there was any violation of ministerial code or ethical standards, focusing on the flawed advice regarding stamp duty on her secondary residence.
Rayner clarified that she initially followed legal advice indicating standard stamp duty liability for her coastal property but later discovered the advice was inaccurate. This discrepancy arose from placing her stake in her Ashton constituency home into a trust for her disabled son, affecting the property’s tax treatment.
Collaborating with HMRC to determine her tax liability, Rayner awaits the investigation’s outcome, which could be imminent based on previous cases handled promptly by Sir Laurie. While supportive voices emerge from within the government, including Chancellor Rachel Reeves, acknowledging full confidence in Rayner, the final decision rests with the Prime Minister upon receiving the ethics report.
If the probe suggests inadvertent breach of the ministerial code, Starmer may opt for an apology from Rayner to retain her position. However, severe findings could lead to her dismissal, though her role as Labour’s deputy leader remains unaffected due to its elected nature. The unfolding situation underscores the delicate balance between political accountability and personal circumstances, with public sentiment also influencing the potential outcome.