Angela Rayner's (Labour) political future hangs in the balance as a verdict on whether she breached ministerial standards looms on Friday. The Deputy Prime Minister and Housing Secretary faces investigation over her failure to pay a £40,000 stamp duty surcharge on an £800,000 flat she bought in Hove this year.
The controversy deepened after lawyers Rayner blamed for her tax underpayment denied having given her any tax advice. Conveyancing firm Verrico and Associates rejected claims they were responsible for the error, with managing director Joanna Verrico saying her lawyers "never" gave Rayner tax advice.
Keir Starmer (Labour) repeatedly declined to say whether he would dismiss his deputy if the independent ethics watchdog rules against her. The Prime Minister said he would "of course" act on the findings of Sir Laurie Magnus's investigation, telling the BBC he would "act on whatever the report is that's put in front of me".
Lawyers reject responsibility claims
Joanna Verrico insisted her Kent-based firm was being made "scapegoats" for the tax error. She said: "We're not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these."
The firm completed Rayner's stamp duty return "based on the figures and the information provided by Ms Rayner", Verrico explained. She added: "We believe that we did everything correctly and in good faith. Everything was exactly as it should be."
Verrico said: "We probably are being made scapegoats for all this, and I have got the arrows stuck in my back to show it." Sources close to Rayner had claimed a conveyancer and two trust law experts had all confirmed the amount she paid was correct at the time.
Self-referral after admitting mistake
Rayner referred herself for investigation on Wednesday, admitting she had made a "mistake" after fresh legal advice from a "leading tax counsel" revealed she owed the extra duty. She had initially believed she wasn't liable for the surcharge because she'd sold her stake in her family home to a court-instructed trust for her disabled son.
The independent ethics adviser will assess whether Rayner violated ministerial rules requiring ministers to "comply with the law", "uphold the highest standards of propriety", and "be as open as possible" with the public. Before her admission, she had insisted for weeks that she'd paid the correct amount.
Starmer said it was for the independent adviser to establish the facts, adding: "then of course it does fall to me - I completely accept that - to make the decision based on what I see in that report".
Conservative pressure intensifies
Conservative leader Kemi Badenoch renewed calls for Rayner's dismissal, saying the conveyancer's denial was "yet more damning evidence that Angela Rayner has not been honest with the British public". Conservative Party chairman Kevin Hollinrake called her actions "the height of hypocrisy" in the Daily Express.
Hollinrake wrote: "Labour's reckless tax agenda, from the family farm tax to attacks on homes and businesses, is proof of a party governing for itself, not for the country." He demanded: "Sir Keir Starmer must find a spine and remove Angela Rayner."
Political stakes mount for Starmer
Losing Rayner would create significant problems for Starmer as he seeks to reset his government following a difficult period. She remains popular among Labour grassroots and played a crucial role in defusing backbench revolts over welfare cuts earlier this year.
Rayner oversees the government's pledge to build 1.5 million new homes and leads the flagship workers' rights expansion. She's viewed as a vital bridge between Downing Street and the wider Labour Party, making her potential departure a major political headache for the Prime Minister.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
