United Kingdom Foreign Minister David Lammy has been appointed as the country’s new deputy prime minister, replacing Angela Rayner following her resignation over a tax scandal.
Rayner stepped down on Friday after admitting she underpaid stamp duty on a flat, a breach of the ministerial code that triggered a sweeping cabinet reshuffle. Lammy’s promotion to deputy prime minister was among several senior appointments announced by UK Prime Minister Keir Starmer.
Rayner, long regarded as a bridge between Labour’s left and centre factions and once seen as a possible successor to Starmer, said in her resignation letter that she had failed to uphold “the highest standards.” She acknowledged her mistake in not seeking specialist tax advice and said she took “full responsibility” for the error.
Starmer expressed sadness at her departure, noting she would “remain a major figure in our party.” Her exit, however, is a serious blow to the Labour leader, with analysts warning it weakens the party’s connection to its working-class roots. Labour now trails Nigel Farage’s populist Reform UK party in national opinion polls.
The reshuffle also saw Yvette Cooper move from the interior ministry to succeed Lammy as foreign secretary. Shabana Mahmood was promoted to home secretary, while Lammy will also take on the justice portfolio in addition to his new deputy premiership.
Other departures included House of Commons leader Lucy Powell and Scotland Secretary Ian Murray, both of whom confirmed they were leaving the government. Powell said on X that Starmer had informed her she would be replaced, adding: “This has not been an easy time for the government. People want to see change and improvements to their difficult lives.”
The controversy around Rayner centred on stamp duty rules, which Ethics Chief Laurie Magnus described as “complex.” While Rayner had twice been told she qualified for a lower rate of tax, the advice was not considered definitive. Her failure to seek further expert guidance meant she fell short of expected standards, Magnus concluded.
Rayner’s career trajectory, from a teenage single mother in poverty to one of Britain’s most senior politicians, had made her one of Labour’s most high-profile and relatable figures. Her departure is widely viewed as a setback for Starmer as he struggles to restore public confidence amid economic difficulties, immigration tensions, and growing support for Farage’s Reform UK.
