Chancellor Expresses Confidence in Deputy PM Amid Tax Dispute
The chancellor has stated she retains "full confidence" in Angela Rayner, the deputy prime minister, as new information surfaced regarding when Rayner became aware she had underpaid tax.
Rayner has voluntarily contacted both the government’s ethics adviser and HM Revenue and Customs (HMRC) after acknowledging the error.
Conservative leader Kemi Badenoch has demanded Rayner’s resignation, but Labour leader Keir Starmer has defended her, telling MPs he was "very proud to sit alongside" her.
In a statement on Wednesday, Rayner explained she initially relied on legal guidance when purchasing an £800,000 flat in Hove, which indicated she owed only the standard stamp duty. However, after media scrutiny, she consulted another tax expert and learned the original advice was incorrect—additional tax was due because she had placed her share of her Ashton constituency home into a trust for her disabled son in 2020.
Sources indicate Rayner received three separate legal opinions before the Hove purchase. A conveyancer and two trust law specialists allegedly confirmed the stamp duty paid was accurate at the time.
Rachel Reeves, the chancellor, told Sky News: "I fully support Angela Rayner. She is a trusted colleague who acknowledges the oversight and is working with HMRC to correct it. Her statement yesterday highlighted personal challenges, including her son’s circumstances, which many will understand."
Reeves confirmed Rayner received definitive guidance on Wednesday. Education secretary Bridget Phillipson, speaking earlier, noted initial advice arrived on Monday—the same day the prime minister publicly defended Rayner in a BBC 5 Live interview.
Phillipson explained: "The deputy prime minister acted on professional advice when purchasing the property. Further review began this week, with clarity emerging by Wednesday after a prior court order on her tax affairs was lifted Tuesday evening."
When asked if the prime minister knew of the tax discrepancy on Monday, Phillipson said Rayner had "believed in good faith she had met her obligations."
