Following Angela Rayner’s resignation as Deputy Prime Minister and Housing Minister, Prime Minister Keir Starmer has appointed David Lammy to the role.
Lammy will also serve as Justice Secretary, overseeing the Ministry of Justice. This move comes after Rayner stepped down amid controversy over her tax affairs, specifically her underpayment of stamp duty on a £800,000 flat in Hove.
The controversy surrounding Rayner’s tax affairs began when it was reported she had saved £40,000 in stamp duty by removing her name from the deeds of her constituency residence in Ashton-under-Lyne and placing it in a trust fund for her disabled son.
Rayner explained she had acted on legal advice, believing she was liable for the standard rate rather than the higher rate applied to additional properties.
However, an investigation by Sir Laurie Magnus, the Prime Minister’s independent adviser on ministerial interests, found that Rayner breached the ministerial code by failing to seek expert tax guidance despite warnings within the legal advice.
In her resignation letter, Rayner conceded she “did not meet the highest standards” and expressed deep regret over her decision not to seek additional specialist tax advice.
She took full responsibility for the error and stated she had since taken steps to resolve the issue and pay what was due. Starmer described her decision as “very painful” but praised her contribution to Labour’s 2024 general election victory and her work in government.
The cabinet reshuffle saw several key appointments:
- David Lammy: Deputy Prime Minister and Justice Secretary
- Yvette Cooper: Foreign Secretary, replacing David Lammy
- Shabana Mahmood: Home Secretary, replacing Yvette Cooper
- Steve Reed: Housing Secretary
Rayner’s departure has created turmoil in the Labour Party, which now trails hard-right firebrand Nigel Farage’s Reform UK party in national polls.
Her resignation is seen as a significant blow to Starmer, who faces challenges in restoring his government’s image after a difficult summer marked by economic gloom and anti-immigration protests.
Rayner was considered a key link to the party’s working-class roots, making her resignation particularly impactful.
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