What will become of the Deputy Prime Minister? It may not be long before Westminster finds out. Yesterday, she referred herself to the independent ethics adviser, Laurie Magnus, after admitting to not paying enough stamp duty on her flat in Hove. Reports have suggested that the findings of Magnus’s inquiry could be published today.
In the bustle of PMQs yesterday, the Prime Minister stood by his deputy. He patted her on the shoulder before proceedings began and defended her from Kemi Badenoch’s (surprisingly feeble) attacks. He clearly wants to keep Rayner on the front benches and has said he will do “everything he can” to do so. But though Keir Starmer clearly sympathises with Rayner – as do many of her cabinet colleagues, and allies in the Parliamentary Labour Party – the PM always does things by the book. If Magnus’s report comes back today and finds she has broken the rules, Starmer won’t have much of a choice.
This has been a deeply unfortunate series of events. After telling reporters for weeks that she had done nothing wrong, Rayner received new legal advice yesterday morning which concluded that additional stamp duty should have been paid. The Housing Secretary said she was “devastated” and opened up about the complicated family dynamics which have clearly led to this situation.
But Rayner’s story is not unique. Housing remains unaffordable, which can make separating even more tricky. In fact, she is not the first female MP to find herself in a tight legal bind due to a difficult housing and family situation. In 2021, Apsana Begum, the MP for Poplar and Limehouse, was found not guilty of housing fraud, in a complicated case which involved what she claimed to be “controlling and coercive” behaviour by her ex-husband.
Allies within the PLP have rallied around Rayner. Clive Lewis, the MP for Norwich South said: “I know Angela well enough to say with confidence she is scrupulous when it comes to the rules. If an error has been made on her taxes, I believe it was just that – an error – not an attempt to avoid paying what she owes.” Lewis pointed out that there are clear “legal constraints” on how much Rayner can disclose about her personal financial affairs. He described Rayner’s self-referral to the PM’s ethics adviser as “responsible” and added “for those reasons, I don’t believe she should be considering her position… I have every confidence she will rectify this fully and transparently”.
But others within the party, as I reported yesterday, are beginning to grow anxious. With a turbulent autumn ahead, in which budget speculation is likely to dominate, can the government really afford another scandal? Even if Magnus’s report does leave Rayner in the clear, she still did not pay the correct amount of tax when purchasing her property. Can she retain credibility as Housing Secretary after failing to pay the correct amount of tax on the purchase of her house?
For Rayner, this has been an unfortunate and upsetting moment in which her family life has been dragged into the public eye. But if Magnus’s findings are released today, a decision will need to be made. If Rayner is found to be in the wrong – as she has already made clear – she will resign. But even if events go in her favour, Labour MPs’ patience over the optics of this scandal may be wearing thin. However reluctant he is, Starmer may be forced to make a decision.
This piece first appeared in the Morning Call newsletter; receive it every morning by subscribing on Substack here
[See also: Is this Keir Starmer’s government or Tony Blair’s?]
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