Angela Rayner (Labour) is battling for her political survival after admitting she underpaid stamp duty on her £800,000 seaside flat in Hove, East Sussex. The Deputy Prime Minister referred herself to the ministerial ethics adviser following days of denials about her tax arrangements.
The underpayment occurred because the property was incorrectly classified as a first home rather than a second home. According to reports from City A.M and Morning Star, this resulted in approximately £40,000 in tax savings that should not have been claimed.
Political crisis deepens
Rayner's admission has left her reputation severely damaged and her political future uncertain. The controversy has intensified pressure on the Deputy Prime Minister, who also serves as Housing Secretary, making property tax issues particularly sensitive for her position.
Keir Starmer (Labour) has given Rayner his full backing despite the growing scandal. The Prime Minister's support comes as the government faces questions about transparency and accountability among senior ministers.
Timing compounds problems
The revelation emerges as the government prepares major property tax reforms for the November Budget, according to City A.M. This timing creates additional political complications for Labour's housing policy agenda.
City A.M reports that a court order had prevented earlier disclosure of the tax arrangements until Tuesday night. This legal constraint may explain the delayed admission and initial denials from Rayner's team.
Expert warnings on consequences
BBC analysis suggests Rayner could face potential fines beyond simply repaying the underpaid amount. Tax experts warn that the case could have broader implications depending on the ethics adviser's findings.
The Deputy Prime Minister has expressed regret over what she describes as a mistake in her tax arrangements. However, the admission comes only after sustained pressure for greater transparency about her property dealings.
Sources used: "Guardian", "BBC", "Morning Star", "Financial Times", "The i", "City A.M" Note: This article has been edited with the help of Artificial Intelligence.
