Deputy Prime Minister Angela Rayner's political future hangs in the balance as an ethics investigation into her tax affairs could determine whether she survives in Keir Starmer's (Labour) top team. The housing secretary faces intense scrutiny after admitting to underpaying stamp duty by £40,000 on her £800,000 seaside flat in Hove.
Sir Laurie Magnus, the independent ethics adviser, will effectively tell the Prime Minister how much trouble his deputy is in. Starmer will then decide whether Rayner can remain in her role or faces the axe.
The £40,000 underpayment
Rayner bought the Hove property in May 2025, making it her third residence including her constituency home in Greater Manchester and grace-and-favour accommodation in Westminster. She removed her name from her constituency home deeds shortly before the purchase, making the flat appear as her primary residence rather than a second home.
This allowed her to pay a lower stamp duty rate of £30,000 instead of the full £70,000 required for additional properties. After seeking further legal advice amid rising scrutiny, she discovered she owed the higher rate after all.
Complex family arrangements
The situation stems from what Rayner describes as a "nesting arrangement" with her ex-husband following their divorce. Their children stay permanently in the family home while the parents alternate living there.
Only The Guardian reports that Rayner was told on Monday about the potential problem but only definitively informed on Wednesday, yet Starmer defended her publicly on Monday afternoon. She transferred her interest in the family home to her disabled son's court-instructed trust and later sold her remaining share to fund the Hove purchase.
Investigation timeline
Rayner has referred herself to both Magnus and HM Revenue and Customs following the revelation. The ethics adviser will examine whether she properly followed the original legal advice she received, as she claims.
Political insiders suggest the investigation could conclude within days. Magnus previously took only six days to find former Conservative party chairman Nadhim Zahawi had breached ministerial standards over his tax affairs, and eight days to investigate anti-corruption minister Tulip Siddiq.
Political survival stakes
Starmer has publicly backed his deputy despite the controversy, expressing determination to save her position. However, opposition politicians are calling for her immediate resignation, highlighting the irony of the housing secretary facing housing-related tax issues while preparing to hike council tax on second properties.
Rayner has admitted discussing potential resignation with her family. A long-awaited ministerial reshuffle has reportedly been delayed until after the probe concludes, with Westminster watching closely for Magnus's verdict on her political fate.
Sources used: "HuffPost UK", "The Guardian", "City A.M.", "GB News", "Express" Note: This article has been edited with the help of Artificial Intelligence.
