Rayner's job hangs in balance as ministerial rules verdict looms

Deputy Prime Minister Angela Rayner arrives at Downing Street amid ethics investigation over tax affairs (Illustrative image) (Photo by Dan Kitwood/Getty Images) Getty Images

Angela Rayner's (Labour) political future hangs in the balance as a verdict on whether she breached ministerial standards is expected on Friday. The Deputy Prime Minister faces mounting pressure over her failure to pay a £40,000 stamp duty surcharge on an £800,000 flat she bought in Hove this year.

The controversy deepened dramatically as lawyers Rayner blamed for her tax underpayment categorically denied having given her any tax advice. Conveyancing firm Verrico and Associates rejected claims they were responsible for the error, with managing director Joanna Verrico stating her lawyers "never" gave Rayner tax advice.

Keir Starmer (Labour) repeatedly declined to say whether he would dismiss his deputy if the independent ethics watchdog rules against her. The Prime Minister told the BBC he would "act on whatever the report is that's put in front of me".

Lawyers reject scapegoat claims

Joanna Verrico said her Kent-based firm completed Rayner's stamp duty return "based on the figures and the information provided by Ms Rayner". She maintained: "We believe that we did everything correctly and in good faith. Everything was exactly as it should be."

The managing director of the small Herne Bay firm expressed frustration at being blamed for the error. "We probably are being made scapegoats for all this, and I have got the arrows stuck in my back to show it," Verrico said.

Verrico insisted: "We're not qualified to give advice on trust and tax matters and we advise clients to seek expert advice on these." Sources close to Rayner had claimed a conveyancer and two trust law experts had all confirmed the amount she paid was correct at the time.

Rayner admits tax mistake

Rayner referred herself for investigation on Wednesday, admitting she made a "mistake" after fresh legal advice from a "leading tax counsel" revealed she owed the extra duty. She initially believed she wasn't liable for the surcharge because she'd sold her stake in her family home to a court-instructed trust for her disabled son.

Before her admission this week, Rayner had insisted for weeks that she'd paid the correct amount of tax. Sir Laurie Magnus will assess whether she violated ministerial rules requiring ministers to "comply with the law" and "uphold the highest standards of propriety".

The Labour leader said it was for the independent adviser to establish the facts, "then of course it does fall to me - I completely accept that - to make the decision based on what I see in that report".

Conservative calls for dismissal intensify

Conservative leader Kemi Badenoch renewed her demands for Rayner's dismissal, saying the conveyancer's denial was "yet more damning evidence that Angela Rayner has not been honest with the British public". Conservative Party chairman Kevin Hollinrake called her actions "the height of hypocrisy" in the Daily Express.

Hollinrake wrote: "Labour's reckless tax agenda, from the family farm tax to attacks on homes and businesses, is proof of a party governing for itself, not for the country." He demanded: "Sir Keir Starmer must find a spine and remove Angela Rayner."

High stakes for Labour leadership

Losing his deputy would create significant political complications for Starmer as he seeks to reset his government following a difficult summer. Rayner remains popular among Labour grassroots and played a crucial role in defusing backbench revolts over proposed welfare cuts earlier this year.

She oversees the government's manifesto pledge to build 1.5 million new homes and leads the flagship workers' rights expansion. The Deputy Prime Minister is viewed as a vital bridge between Downing Street and the wider Labour Party.

Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.