Angela Rayner Battles Tax Row Amid Growing Political Pressure
Angela Rayner, the Deputy Prime Minister and Housing Secretary, is currently fighting for her political survival after admitting she underpaid stamp duty on a property purchase. The controversy has placed her under the spotlight, with political allies rallying to her defense while opponents call for her resignation.
The issue stems from the purchase of a flat in Hove, East Sussex. At the time, Rayner believed she only needed to pay the standard stamp duty rate. However, fresh legal advice has since revealed that she should have paid the higher rate usually applied to second homes. This error, she says, was based on advice that did not properly account for her situation—particularly the legal arrangements surrounding her former family home in Greater Manchester.
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That property had been partially sold to a court-instructed trust created to help support her son, who has lifelong disabilities. Because of this trust, and because she still retained some stake in the family home at the time of her purchase in Hove, the higher rate of stamp duty was legally required. Rayner explained that she had been unable to disclose the full details earlier due to a court order, which has only recently been lifted.
Rayner has now contacted HMRC to settle the amount owed and has referred herself to the Prime Minister’s adviser on ministerial standards, Sir Laurie Magnus. This step has been presented as evidence that she is taking the matter seriously. Still, critics argue the mistake undermines her credibility, particularly given her role overseeing housing and her past criticism of others over tax avoidance.
The political stakes are high. Prime Minister Sir Keir Starmer has stood firmly beside her, stating he is “proud to sit alongside” his deputy. Education Secretary Bridget Phillipson and Chancellor Rachel Reeves have also expressed confidence in Rayner, stressing that she acted in good faith, relied on advice at the time, and is now rectifying the error. Reeves in particular emphasized that Rayner is a colleague who is working with HMRC to ensure the correct tax is paid, describing the underpayment as a genuine mistake.
The opposition, however, sees the matter differently. Conservative Party chairman Kevin Hollinrake has insisted the rules are clear, arguing that Rayner’s position is “untenable.” He claimed that if the same situation involved a Conservative MP, Rayner herself would be demanding their resignation. Both the Conservatives and Reform UK have urged HMRC to investigate whether her actions were careless or deliberate. If deemed careless, she faces a fine of around £12,000 on top of the £40,000 tax shortfall. If judged deliberate, the penalty could double the unpaid sum.
For now, the situation has become a waiting game. The official report from the standards adviser is expected soon, and the outcome could determine whether Rayner clings on to her position or is forced to step aside. Allies continue to defend her integrity, while critics sharpen their attacks, leaving her political future hanging in the balance.
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