UK Deputy Prime Minister Angela Rayner has acknowledged underpaying her taxes but denies any intent to evade. Rayner described the issue as a ‘mistake’ made after following legal advice. The opposition is demanding her dismissal over the controversy, intensifying political pressure on the government.
Rayner, who also serves as housing minister, confirmed she owed more tax on a property she bought in Hove, a seaside town in southern England, after initially relying on incorrect advice.
“I’m devastated because I’ve always upheld the rules and always have done,” she said on Wednesday. “I made a mistake based upon the advice that I relied upon that I received at the time.”
The admission has put her under pressure as Labour struggles in the polls, a year after Prime Minister Keir Starmer’s landslide victory.
Nigel Farage’s Reform UK party has surged ahead, with a June YouGov poll projecting Reform would win 271 seats in parliament, pushing Labour down to 178. The Conservatives, who suffered a historic defeat last year, would take just 46 seats.
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Rayner, 45, is seen as a future leadership contender, but her future may hinge on an investigation by the government’s independent adviser on ministerial standards. Her opponents have accused her of avoiding 40,000 pounds ($54,000) in stamp duty on a second home by transferring ownership of her primary residence in northern England before buying the Hove property.
At Prime Minister’s Questions, Conservative leader Kemi Badenoch urged Starmer to dismiss her. Starmer defended his deputy, saying she had gone “over and above” transparency requirements regarding her property dealings and that he was “very proud” to work with her.
The Labour government has already been rattled by a string of scandals, with four ministers resigning over misconduct since its election. Both Starmer and Rayner were also criticised earlier this term for accepting high-end clothing donations, a practice they later scrapped.
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Known for her blunt style and strong working-class roots, Rayner is widely regarded as one of Labour’s strongest political assets.
She rose to prominence from a modest background, often using her story to connect with disillusioned voters. Political analysts say her appeal among working-class communities is a key part of Labour’s strategy, making her potential downfall a significant blow to Starmer’s leadership team.
The controversy comes as Labour grapples with slowing economic growth, discontent over cuts in welfare schemes, and frustration among voters who backed the party last year, hoping for sweeping change.
Pollsters say Reform UK’s surge signals deep public anger at mainstream parties, with Farage positioning himself as the voice of working-class Britons.
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With the next election not due until 2029, Labour still has time to recover. But Rayner’s troubles add to a growing list of scandals that have chipped away at Starmer’s authority, fuelling speculation over whether the government can hold on to its massive majority.
