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UK Deputy Prime Minister Angela Rayner Resigns Over Tax Error

U.K. Deputy Prime Minister Angela Rayner resigned on October 27, 2023, following an independent inquiry that revealed she failed to meet the standards expected of government ministers regarding a tax issue linked to a recent property purchase. The investigation concluded that Rayner did not pay the correct amount of tax on her acquisition of an apartment in Hove, located on England’s south coast.

Rayner openly acknowledged her oversight, stating she should have sought more specific advice. In her resignation letter to Prime Minister Keir Starmer, she emphasized that the inquiry found she acted in good faith. “I take full responsibility for this error,” she wrote, adding, “It was never my intention to do anything other than pay the right amount.”

Starmer expressed his sadness at Rayner’s decision but affirmed that stepping down was the correct course of action. In his handwritten response, he conveyed his admiration for her accomplishments in politics, signing off with “very best wishes and with real sadness.” Despite her resignation from the deputy prime minister position, Rayner will continue to serve as a lawmaker on the back benches.

The inquiry, led by the independent adviser on ministerial standards, Lauri Magnus, reported on October 27. While Magnus concluded that Rayner had “acted with integrity and with a dedicated and exemplary commitment to public service,” he noted that she had breached the ministerial code of conduct. In the U.K., property purchases incur taxes, with higher levies applied to expensive homes and secondary residences. Reports indicate that Rayner potentially saved £40,000 (nearly $54,000) by not paying the appropriate stamp duty on her £800,000 (approximately $1 million) purchase.

Rayner’s statement highlighted her “complex living arrangements” stemming from her divorce in 2023 and her son’s lifelong disabilities, which contributed to her failure to pay the correct tax. She also mentioned the significant toll the ongoing media scrutiny was taking on her family.

Having risen from a teenage single mother to a trade union official and then to a lawmaker and deputy prime minister, Rayner’s journey is notable within British politics. Her direct communication style and ability to connect with the public distinguished her from Starmer, who has faced challenges in garnering similar support.

As the former Minister for Housing in the Labour government, Rayner frequently criticized those who evade taxes, particularly targeting the previous Conservative administration. This context opened her to accusations of hypocrisy, with current Conservative leader Kemi Badenoch asserting that Rayner’s role had become “untenable for days.” Badenoch claimed, “The truth is simple, she dodged tax. She lied about it.”

Rayner’s popularity within the Labour Party positioned her as a potential successor to Starmer. In resigning from her roles as deputy prime minister and deputy leader of the party, the Labour Party will now need to elect a new deputy leader.

Following Rayner’s resignation, Starmer is expected to reshuffle his Cabinet as he aims to navigate the political landscape, which has seen a decline in support for his Labour government since last year’s election due to various missteps, particularly regarding welfare reform and ongoing immigration concerns. The hope is that with Rayner’s departure, the political agenda can shift back to pressing issues.

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