Deputy Prime Minister Angela Rayner faces mounting pressure to resign after underpaying stamp duty by approximately £40,000 on her £800,000 flat purchase in Hove. Rayner has referred herself to both the government ethics adviser and HMRC following the discovery of the tax shortfall.
Conservative Party chairman Kevin Hollinrake has called for her resignation and demanded HMRC investigate whether she was guilty of tax evasion. Both Kemi Badenoch and Nigel Farage have joined calls for Rayner to step down, creating cross-party pressure on the Deputy PM.
Starmer's Defence
Prime Minister Keir Starmer mounted a robust defence of Rayner at Prime Minister's Questions, telling critics they were making "a mistake". However, questions remain about when Starmer first learned of the tax issue, with the timeline suggesting he knew of the underpayment when he publicly defended her on Monday afternoon.
Education Secretary Bridget Phillipson revealed that Rayner was initially told on Monday there might be an issue with her stamp duty payment. The deputy PM received definitive confirmation on Wednesday that she had made a mistake in the amount of stamp duty paid on the purchase.
Investigation Details
Rayner consulted three advisers before concluding she only needed to pay the standard rate of stamp duty rather than the higher rate for a second home. The consultations included one individual experienced in conveyancing and two experts on trust law, though it remains unclear if any possessed expertise in complex tax law.
A court order had prevented Rayner from discussing details of the trust set up for her disabled son until Tuesday, limiting her ability to explain the situation publicly. The trust arrangements affected her stamp duty liability calculations.
Political Consequences
The scandal proves particularly damaging given Rayner's role as Housing Secretary and her previous criticism of Conservative MPs for tax compliance issues. Political analysts suggest the Deputy PM faces credibility damage regardless of the investigation's outcome.
Hollinrake questioned whether Rayner could have afforded the property if she had paid the additional £40,000 in second homes stamp duty on top of the £30,000 standard duty and £150,000 deposit. The Conservative chairman described her actions as "careless" at best in his letter to HMRC.
Sources used: "The Guardian", "City A.M", "GB News", "Mirror" Note: This article has been edited with the help of Artificial Intelligence.
