When you buy a second house, beware of the tax implications!!

Here’s a deeper look into the political implications, the cabinet reshuffle, and reactions from other parties following Deputy Prime Minister Angela Rayner’s resignation on 5 September 2025:

Political Implications & Internal Dynamics

A major blow to Starmer’s government
Rayner’s resignation delivers one of the most damaging setbacks so far—and as the most senior figure to exit the government, it delivers a strong blow to Prime Minister Keir Starmer’s authority.

Threat to party unity
Seen as a bridge between Labour’s left wing and centrist factions, her departure may ignite growing divides within the party. A contested deputy leadership race looms, likely highlighting ideological tensions between left and centre-right influences.


Damaged momentum for “phase 2” of government
Starmer had envisioned a transition into a more delivery-focused stage of governance—now disrupted by this crisis and adding to perceptions of instability.

Implications for upcoming fiscal strategy
With the Budget approaching and tax rises anticipated, the integrity question stemming from Rayner’s tax fiasco weakens the moral standing of such measures.

Cabinet Reshuffle: Moves and Speculation

Immediate changes underway
Starmer has embarked on a “sweeping” reshuffle. Notably, Lucy Powell (Leader of the Commons) and Ian Murray (Scotland Secretary) are confirmed to be leaving their posts.

But some stability remains
Chancellor Rachel Reeves—viewed as a fiscal disciplinarian—will stay in her position to reassure markets ahead of the Budget.

Speculation on potential successors
The Independent notes that the Deputy PM post might remain vacant, with Sir Keir perhaps opting to create a different deputy-like role such as “First Secretary.” Potential contenders include:

Pat McFadden (Chancellor of the Duchy of Lancaster)—seen as a steady, loyal hand.

Darren Jones (Chief Secretary)—emerging as a de facto deputy in Downing Street.

Wes Streeting (Health Secretary)—high-profile but not universally popular.

Yvette Cooper (Migration/Law)—well-liked but politically contentious due to migration challenges.
The Independent

Reactions from Other Parties

Reform UK seizes the opportunity
Nigel Farage framed Rayner’s exit as evidence of Labour’s unraveling, predicting internal chaos or even an early general election. His party conference, in Birmingham, used the moment for maximum effect.

Conservative critique intensifies
Tory leader Kemi Badenoch slammed Rayner as dishonest, calling the situation unacceptable and questioning Starmer’s leadership. Conservative Chair Kevin Hollinrake had already written to the ethics adviser, accusing Rayner of hypocritical tax avoidance.

Liberal Democrats offer measured response
While they didn’t call for her resignation outright, the Lib Dems expressed trust that Rayner acted in good faith—leaving ethics to the independent investigation.

Labour’s defence crumbles over time
Early defenses from within the party—such as Stephen Kinnock and Rachel Reeves—soon gave way in light of the ethics adviser’s verdict.

Summary Table
Area Key Details
Political Fallout Undermines Starmer’s stability, risks internal divisions, clouds fiscal credibility
Reshuffle Moves Powell and Murray out; Reeves stays; potential successors eyed
Opposition Response Reform claims chaos, Conservatives attack hypocrisy, Lib Dems hold back for now