ANGELA Rayner has resigned from her roles in the UK Government amid a row over her tax affairs.
It comes after she admitted underpaying stamp duty on a £800,000 property in Hove by as much as £40k.
A UK Cabinet reshuffle will now take place later on Friday afternoon.
She has always maintained that underpaying stamp duty on her second home was "an error", saying that she did so based on advice she received from the conveyancing firm which was handling the sale.
That firm has denied giving her tax advice, saying that it completed her stamp duty return based only on information she provided.
The Hove property was also vandalised with graffiti branding her a "Tax Evader" earlier this week.
Keir Starmer received the findings of Magnus's inquiry shortly before 12pm on Friday, when news broke that Rayner had quit.
The report concluded that Rayner had breached the ministerial code.
While he praised her for "full and open cooperation in assisting me with my inquiries", Magnus said she breached the rules that governs the conduct of government ministers.
He concluded: "I believe Ms Rayner has acted with integrity and with a dedicated and exemplary commitment to public service.
"I consider, however, that her unfortunate failure to settle her SDLT liability at the correct level, coupled with the fact that this was established only following intensive public scrutiny, leads me to advise you that, in relation to this matter, she cannot be considered to have met the “highest possible standards of proper conduct” as envisaged by the Code.
"Accordingly, it is with deep regret that I must advise you that in these circumstances, I consider the Code to have been breached."
Rayner will also resign as deputy leader of the Labour Party, which may prompt an election among the Labour membership.
In her resignation letter to the Prime Minister, Rayner said she took "full responsibility for [the] error" around her tax returns, and said "it was never my intention to do anything other than pay the right amount".
She went on to say that she had to consider "the significant toll that the ongoing pressure of the media is taking on my family" as a result of the investigation.
— Angela Rayner (@AngelaRayner) September 5, 2025
"My priority has, and always will be, protecting my children and the strain I am putting them under through staying in post has become unbearable," she said.
Rayner added: "Given the findings, and the impact on my family, I have therefore decided to resign as Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, as well as Deputy Leader of the Labour Party."
Responding to Rayner in a handwritten letter, Starmer said he is "very sad" to see her go.
"Although I believe you have reached the right decision, it is a decision which I know is very painful for you," the Prime Minister said.
🚨 NEW: Keir Starmer, in a handwritten letter to Angela Rayner, says he is "very sad" to see her go pic.twitter.com/WvoMmkHLeJ
— Politics UK (@PolitlcsUK) September 5, 2025
"You have given your all to making the Labour Government a success and you have been a central part of our plan to make Britain fairer for working families."
The Prime Minister went on: "On a personal note, I am very sad to be losing you from the Government. 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. I know that many people of all political persuasions admire that someone as talented as you is the living embodiment of social mobility."
He added that while Rayner will no longer be part of the UK Government, she "will remain a major figure in our party".
SNP Westminster leader Stephen Flynn said: "This is yet another catastrophic blow for Keir Starmer's failing Government, which is one of the least popular and most chaotic governments of modern times.
"The Labour Party is governing by chaos – with the Prime Minister's latest reset blown apart within days by more scandals, more failure and more resignations.
"Voters were promised change but under Starmer things have gone from bad to worse. The UK Government has been beset by scandals and instability, the cost of living is soaring, poverty is at record levels, unemployment is at a four-year high, the UK economy has been downgraded, public finances are deteriorating - and the vast majority of people think the UK is in a bad state."
Flynn added: "Brexit Britain is broken and it's increasingly clear why Scotland needs a fresh start with independence – so we can build a better future instead of being stuck under the constant failure and chaos of Westminster control."
