London: British Prime Minister Keir Starmer carried out a major Cabinet reshuffle, promoting Foreign Secretary David Lammy to Deputy Prime Minister after Angela Rayner resigned over a tax underpayment controversy.
Rayner, 45, who also served as Housing Secretary, stepped down following an independent ethics inquiry that found she had breached the Ministerial Code by failing to seek proper tax advice on a seaside property purchase. The review concluded she underpaid stamp duty by around £40,000.
Starmer named Lammy, 53, as his new deputy, adding Justice Secretary to his responsibilities. Home Secretary Yvette Cooper was shifted to the Foreign, Commonwealth and Development Office, while British Pakistani minister Shabana Mahmood moved from Justice to head the Home Office. The changes mark a significant reset at the top of Starmer’s government, just weeks after Labour took office.
In a letter to Rayner, Starmer said he was very sad to lose his deputy. “You have been a trusted colleague and a true friend for many years. I have nothing but admiration for you and huge respect for your achievements in politics,” he wrote, adding she would remain a major figure in the Labour Party.
It is the honour of my life to be appointed Deputy Prime Minister, Lord Chancellor and Justice Secretary by @Keir_Starmer.
Ever since I was a boy growing up in Tottenham, I’ve been determined to help make this country fairer, safer and better off. 1/2 https://t.co/X2tUgByEiZ
— David Lammy (@DavidLammy) September 5, 2025
Rayner said she regretted not seeking specialist tax advice. “It was never my intention to do anything other than pay the right amount,” she wrote in her resignation letter.
Laurie Magnus, the prime minister’s adviser on ministerial standards, said Rayner had acted with integrity but did not meet the highest possible standards of proper conduct required by the code. He noted she relied on legal advice that specifically warned it did not replace specialist tax counsel.
The controversy centred on her purchase of a flat in Hove, which she initially classified as her main residence. Because her family retained another property in trust for her disabled son, she was liable for the higher stamp duty rate on second homes.
