Angela Rayner has resigned from government after the prime minister’s adviser on ministerial standards concluded she failed to pay the correct stamp duty on a second home, leaving her position untenable.

The deputy prime minister and housing secretary stepped down on Thursday, hours after Sir Laurie Magnus delivered his report to Sir Keir Starmer. The investigation centred on a £40,000 surcharge Rayner should have paid on a property in Hove. She had insisted she followed legal advice and paid the correct rate, but referred herself for scrutiny after a senior barrister later advised the surcharge was due.

Starmer accepted Magnus’s findings and determined that Rayner could not remain in post, triggering her resignation. A swift cabinet reshuffle is expected to appoint a new housing secretary, while Labour will also begin the process of electing a new deputy leader.

Rayner’s departure caps a bruising week for the government, which has faced mounting questions over ministerial standards as it prepares for the 26 November Budget.

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Angela Rayner resigns as deputy prime minister after report into tax affairs