Keir Starmer (Labour) is scrambling to prevent Angela Rayner's dramatic resignation from triggering damaging splits that could undermine his leadership. The Deputy Prime Minister quit government and her party role after the ethics adviser found she breached ministerial code by underpaying £40,000 stamp duty on her seaside flat.
Downing Street moved swiftly to reshape the government, appointing David Lammy as Deputy Prime Minister and Justice Secretary. Yvette Cooper takes over as Foreign Secretary, while Shabana Mahmood gets promoted to Home Secretary after Steve Reed becomes housing secretary.
Leadership contest fears
The vacant deputy leadership role requires a party membership vote, sparking fears of a destabilising contest. Senior Labour insiders warn that any campaign could divide the party, with one source saying "the clearest route to victory" would be to stand on an anti-Starmer ticket.
Starmer allies are pushing for a quick coronation rather than a full election. One adviser says the party needs a contest "like a hole in the head" and warns that a prolonged campaign would distract from policy delivery ahead of the make-or-break Budget on 26 November.
Under current rules, candidates need support from 80 MPs to reach the ballot. Starmer loyalists hope this threshold will freeze out left-wing opponents if MPs rally around one unity candidate.
Political exploitation
Opposition parties are already exploiting the crisis. Only The i reports that Nigel Farage brought forward his Reform UK conference speech by three hours to call the government "in deep crisis" following Rayner's departure.
The Guardian characterises the reshuffle as a "modernising clique coup" that severs bridges to Scottish Labour and sidelines soft left allies. Leading left-winger Richard Burgon has called for "a proper election for Deputy Leader" rather than "a leadership stitch-up".
Stamp duty scandal
Sir Laurie Magnus found Rayner failed to heed legal advice when buying her £800,000 Hove property. She retained an interest in her constituency home despite placing it in a complex trust for her disabled son after an NHS compensation payout.
Rayner told Starmer: "I deeply regret my decision to not seek additional specialist tax advice." Magnus said she acted in "good faith" but taxpayers bear ultimate responsibility for their liabilities.
The controversy carries added irony given The i's revelation that Farage himself uses a private company structure to pay 25% corporate tax on his £400,000 GB News income rather than 40% income tax. Some Labour MPs are even calling for the deputy leadership post to be abolished entirely as "a nonsense that only feeds internal division".
Sources used: "The i", "The Guardian", "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
