Angela Rayner
(Official Portrait via UK Parliament)

KEY POINTS

  • The Labour Deputy Leader reportedly saved £40,000 by removing her name from another property deed.
  • Critics have dubbed her 'Three Pads Rayner', accusing her of hypocrisy due to her past comments on tax avoidance.
  • Sir Keir Starmer continues to support Rayner, rejecting calls for her dismissal from Conservative MPs.

Deputy Prime Minister Angela Rayner is battling to hold on to her Cabinet position following a bombshell admission that she underpaid stamp duty on her £800,000 seaside flat in Hove.

With mounting pressure from the opposition and whispers of hypocrisy, Rayner has tearfully broken her silence in an emotional interview and formally referred herself to an ethics watchdog.

The embattled Labour frontbencher said she 'deeply regrets' the error, which has fuelled days of political controversy. The Deputy PM and Housing Secretary revealed she had discussed resigning with her family and is now prepared to pay the additional tax she owes.

Emotional Interview and Public Apology

In a statement to Sky News, Rayner admitted: 'I've been in shock, really, because I thought I'd done everything properly. I relied on the advice that I received and I'm devastated because I've always upheld the rules.'

The scandal centres around claims that Rayner reduced her stamp duty liability by removing her name from the deeds of a family home in Ashton-under-Lyne. Doing so allegedly allowed her to avoid paying the higher rate of tax associated with purchasing a second property, saving up to £40,000.

While Rayner paid £30,000 in stamp duty on her Hove flat, critics argue that the correct amount should have been closer to £70,000. To compound matters, the Greater Manchester residence — though technically no longer hers — remains listed as her primary residence for council tax purposes. This reportedly results in lower tax charges on her third residence: a government-provided grace-and-favour flat in Admiralty House, London.

Accusations of Hypocrisy Emerge

Dubbed 'Three Pads Rayner' by critics, the controversy has exposed the Deputy PM to allegations of double standards, given her outspoken stance against tax avoidance in the past. In 2023, she led calls for then-Tory chair Nadhim Zahawi to be dismissed over his own tax affairs.

At Prime Minister's Questions, Conservative leader Kemi Badenoch accused Labour of hypocrisy and demanded Sir Keir Starmer sack Rayner. 'If he had a backbone he would sack her', she declared. Sir Keir, however, stood firmly by his deputy, saying he was 'very proud' to sit beside her in the Commons.

Personal Circumstances and Legal Complexities

'She's gone over and above in setting out the details, including yesterday afternoon asking a court to lift the confidentiality order in relation to her own son', he told MPs. 'I know from speaking at length with the Deputy PM, just how difficult that decision was for her and her family.'

Rayner's personal circumstances have played a key role in the unfolding narrative. She disclosed that her son lives with life-long disabilities and that legal safeguards surrounding her divorce in 2023 had previously prevented her from speaking publicly. Her interest in the family home had been transferred into a court-ordered trust to protect her son's welfare.

Formal Referral to Ministerial Ethics Watchdog

In response, Rayner referred herself to Sir Laurie Magnus, the Prime Minister's adviser on ministerial standards. Under the ministerial code, ministers must ensure their personal tax affairs are in order, particularly when allocated official residences.

'As soon as I became aware that I may be liable for additional stamp duty, I alerted and referred myself to the independent adviser', she said. An investigation could lead to a recommendation for sanctions, but the final decision on whether she remains in Cabinet rests with the Prime Minister.

Political Fallout and What Comes Next

Although Rayner may be removed from her government roles, she would retain her elected position as Deputy Leader of the Labour Party.

With both political pressure and public scrutiny intensifying, the future of Angela Rayner in frontline politics now rests on the findings of an independent probe — and whether Sir Keir Starmer chooses principle or pragmatism in the weeks ahead.