Keir Starmer is working to address the turmoil surrounding his administration after his deputy, Angela Rayner, resigned from her position for failing to comply with government rules regarding her tax obligations.
In an effort to stabilize his government following recent setbacks, the prime minister accelerated a significant reshuffle of his cabinet, shifting key figures such as Yvette Cooper, David Lammy, and Shabana Mahmood into prominent new positions.
However, the fallout from Rayner's controversy—where she underpaid roughly £40,000 in stamp duty for her seaside property—threatens to further weaken Labour’s standing as the party faces growing pressure from Reform UK.
With Rayner stepping down from her roles—which also included deputy party leader—a contentious internal election is expected, potentially allowing discontented lawmakers to push Starmer toward policy shifts.
The upheaval comes after a turbulent summer break, during which Nigel Farage and migration debates dominated discussions, and ahead of a challenging autumn where the chancellor, Rachel Reeves, is anticipated to introduce tax measures to address the country's finances.
The ethics official, Sir Laurie Magnus, stated that while Rayner had demonstrated integrity and dedication in public service, she had still violated the ministerial code concerning her tax situation.
In her resignation statement, Rayner expressed regret for not seeking further tax guidance when purchasing the property in Hove, East Sussex, earlier this year. She also cited the strain of media scrutiny on her family, despite reflecting on her rise from modest beginnings to high office as a personal achievement.
Starmer, in a handwritten reply, expressed regret over her departure and assured her of her continued influence within the party, emphasizing her passion for progressive causes.
Yet, her absence removes one of Labour’s most credible and influential working-class voices as the party seeks to regain support among its traditional voters while trailing Reform UK in surveys.
Speaking at his party’s gathering in Birmingham, Farage criticized Rayner’s behavior as indicative of privilege and suggested her exit could deepen divisions within Labour, raising speculation of an early general election.
To counter the instability and shift focus from Rayner’s resignation, Starmer fast-tracked his cabinet reshuffle, reassigning multiple ministers and dismissing two. Yvette Cooper assumed the role of foreign secretary, with Shabana Mahmood taking over at the home office.
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