Fri Sep 05 14:59:15 UTC 2025: **News Article: Rayner Resignation Triggers Major UK Cabinet Shakeup**

**London, UK** – Angela Rayner’s resignation as Deputy Prime Minister and Housing Minister has plunged the Labour government into further turmoil, prompting a significant cabinet reshuffle led by Prime Minister Keir Starmer. Rayner stepped down Friday after an official probe concluded she violated the ministerial code by underpaying tax on a property transaction.

In her resignation letter, Rayner admitted to not seeking adequate tax advice, accepting “full responsibility” for the error. Starmer expressed his regret at losing her, acknowledging her continued importance to the Labour Party. Rayner’s departure, particularly impacting her strong ties with working-class voters, is seen as a major setback for Starmer’s leadership, already under pressure with recent polling data showing Reform UK gaining traction.

The ensuing cabinet reshuffle sees Foreign Minister David Lammy appointed as the new Deputy Prime Minister. Yvette Cooper has been tapped to fill the vacated role of Foreign Secretary, moving from her previous position as Interior Minister.

Adding to the shakeup, Lucy Powell, formerly the Leader of the House of Commons, and Ian Murray, the Scotland Secretary, have also left their posts. Powell confirmed in a statement that Starmer had informed her of his intention to appoint a new Commons leader. “This has not been an easy time for the government. People want to see change and improvements to their difficult lives,” Powell stated on social media.

The investigation into Rayner stemmed from reports alleging she saved £40,000 by removing her name from the deeds of another property, leading to an underpayment of stamp duty on a seaside flat. While ethics chief Laurie Magnus acknowledged the complexity of the tax rules and the initial advice Rayner received, he concluded her failure to seek specialist counsel constituted a breach of proper conduct.

Rayner, once considered a potential future leader of the Labour Party, has been a frequent target of political attacks from the Conservatives and right-wing media. The reshuffle comes at a critical time for the Labour government as it seeks to regain public confidence and address pressing domestic issues.

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