BIRMINGHAM, England, Sept 5 – Prime Minister Keir Starmer’s government was shaken on Friday when Deputy Prime Minister Angela Rayner stepped down following revelations over unpaid tax, delivering the most damaging blow yet to his leadership. The resignation triggered a swift reshuffle at the highest levels of government, forcing Starmer to appoint a new deputy and make changes to both the foreign and interior ministries in an attempt to regain control and authority.
Rayner, once seen as a crucial ally and a powerful voice within Labour, admitted she had failed to seek specialist advice regarding her complex financial affairs, resulting in a tax underpayment estimated at £40,000 (Approximately $54000). Her resignation letter expressed deep regret, acknowledging what she described as a “serious error of judgment” and apologizing directly to the prime minister. The departure marked the eighth ministerial resignation under Starmer’s premiership and by far the most politically damaging.
Starmer responded by announcing a sweeping cabinet reshuffle. Foreign Minister David Lammy was promoted to deputy prime minister, Yvette Cooper shifted from the interior ministry to the foreign office, and Justice Secretary Shabana Mahmood was elevated to head the interior ministry. The decisions, though pragmatic, underscored the prime minister’s reliance on loyal and trusted allies as he attempts to steady a government battered by controversy.
Cabinet Shake-Up After Rayner’s Exit
The departure of Angela Rayner left a void that Starmer could not ignore. Known for her charisma and plain-speaking style, Rayner had been one of Labour’s most prominent figures and a symbol of the party’s grassroots appeal. Her resignation not only stripped the government of a key personality but also left critics questioning Labour’s credibility at a time when the party faces mounting scrutiny over financial probity and integrity.
David Lammy’s promotion to deputy prime minister signaled trust in his abilities while also carrying potential risks for Starmer’s leadership. Though widely respected, Lammy relinquishes his position as foreign secretary, a role he had used to strengthen Labour’s image abroad. The crucial role is now taken up by Yvette Cooper, a veteran Labour politician who earlier oversaw the government’s approach to immigration and security. Cooper’s promotion is seen as a reward for loyalty and experience, even though her previous policies often faced heavy criticism from opponents and advocacy groups.
In turn, Shabana Mahmood steps into the role of interior minister. At 44, Mahmood has cultivated a reputation for competence and decisiveness in justice matters, rarely shying away from controversial decisions. Her appointment suggests Starmer wants stability at a time when his administration is struggling to define its priorities and restore public trust.
Commentators pointed out that the reshuffle went much deeper than anticipated, coming just a week after Starmer had reorganized his Downing Street advisers, especially in the area of economic policy. Yet Rayner’s resignation forced a deeper reorganization, one that revealed just how fragile the government’s position has become.
Resignation Sparks Crisis of Confidence
Rayner’s departure comes at a time when Labour is already under fire. Public discontent has grown over reports of ministers accepting expensive gifts and donations, as well as controversy surrounding welfare spending. The prime minister’s team hoped to present a disciplined front on the economy, but the resignation has instead amplified doubts about Labour’s internal unity and moral compass.
In her resignation letter, Rayner admitted she should have acted more carefully when handling her personal finances. She explained that she relied on legal advice that later proved inadequate and regretted not consulting tax specialists earlier. She also confirmed that she would pay the outstanding sum. Beyond leaving her government post, Rayner stepped aside as deputy leader of the Labour Party, a position that Lammy is now expected to assume informally until party procedures take their course.
The independent adviser determined that Rayner violated the ministerial code by disregarding earlier cautions regarding her tax responsibilities. The ruling left Starmer with little choice but to accept her resignation, despite earlier attempts to defend her. Privately, many Labour lawmakers described her as “irreplaceable,” noting her ability to connect with working-class voters in ways that few senior ministers could match.
Opposition parties wasted no time capitalizing on the crisis. Speaking at his party’s conference in Birmingham, Reform UK leader Nigel Farage argued that Labour was already floundering, saying the government appeared adrift despite commanding a large majority in Parliament. He suggested that Labour could even be forced into an early election before 2029, though legally the next national vote does not have to be called until then.
Public polling has also signaled trouble for Starmer. Surveys indicate Labour trailing behind Reform UK in key areas, with voters increasingly skeptical of the government’s handling of both economic and ethical issues. Analysts suggest that without decisive action, Labour risks losing the narrative that carried it into power with such force only a short time ago.
Rayner’s personal story has also added fuel to the fire. She sold her share of a family home in northern England to a trust established for her disabled son, then registered a property in Hove as her primary residence. She later claimed she misunderstood the rules on second-home tax, believing she would not be liable for the higher rate. Only after further legal advice did she admit fault and agree to pay the additional amount owed.