British Deputy Prime Minister Resigns Over Tax Evasion Allegations

She faces accusations of evading nearly £40,000 ($54,000) in taxes.UK Deputy Prime

Minister Angela Rayner has resigned following allegations of tax evasion. On Friday (5 September), Rayner admitted to the charges and stepped down. Britain’s Independent Inquiry Commission found that she had violated the ministerial code of conduct. When the allegations first surfaced, Prime Minister Keir Starmer publicly backed her. Analysts say the resignation is a significant blow to Starmer’s leadership, Reuters reported.

In her resignation letter to Starmer, Rayner wrote, “After buying a new house, I did not take expert advice regarding tax matters. I regret this… I take full responsibility for this mistake.”

She added, “Considering the investigation’s outcome and the impact on my family, I have decided to resign.”

Rayner also gave up her positions as Minister and Deputy Leader of the Labour Party.

Starmer said he was deeply saddened by her departure, describing Rayner as a loyal colleague and a true friend.
“Although you will no longer be part of the government, you will remain an important figure in our party,” he said.

Her resignation triggered a Cabinet reshuffle. Commons Leader Lucy Powell is leaving the government, while Ian Murray will no longer serve as Secretary for Scotland.

Recent opinion polls show the Labour Party trailing behind the populist Reform UK party, adding to Starmer’s challenges in restoring both his leadership and the party’s image. Labour leaders had already faced criticism for allegedly accepting expensive clothes and concert tickets from donors.

Losing Rayner is considered especially damaging for Starmer. Rising from a teenage mother in a working-class family to the top of British politics, she was seen as a unifying figure between Labour’s left and right wings — and enjoyed higher popularity ratings than Starmer himself.

Rayner’s departure brings the number of ministers and junior ministers who have resigned from Starmer’s government to eight. Of these, five quit over misconduct or irregularities. Not since 1979 has a British prime minister lost so many ministers so early in office — a figure that now surpasses even Boris Johnson.

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