Labour Turmoil Mounts After Deputy Prime Minister’s Tax Fallout

 

Labour Turmoil Mounts After Deputy Prime Minister’s Tax Fallout

Angela Rayner Resigns Amid Stamp Duty Scandal

Deputy Prime Minister Angela Rayner, a key figure known for bridging Labour with working-class voters, bowed out following a breach of the ministerial code over underpayment of stamp duty—a lapse of approximately £40,000 on an £800,000 property.
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Keir Starmer Rushes Cabinet Reshuffle

To contain the fallout, Prime Minister Keir Starmer orchestrated a swift reshuffle:

• David Lammy became Deputy Prime Minister and Justice Secretary.

• Yvette Cooper assumed the Foreign Secretary role.

• Shabana Mahmood was elevated to Home Secretary.
  Remarkably, for the first time, the three highest offices beneath the PM are held by women.
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Deputy Leadership Race Sparks Internal Tensions

With Rayner's exit, Labour's National Executive Committee launched a fast-tracked contest to fill the deputy leader role—expected to conclude by October 25. Potential candidates from both the left (e.g., Emily Thornberry, Rosena Allin-Khan) and more centrist figures (e.g., Dame Emily Thornberry, Wes Streeting) are lining up. Critics warn the rapid timeline smacks of a "stitch-up," aimed at sidelining dissenting voices and reinforcing Starmer's grip.
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Labour’s Fraying Coalition of Influence

Plaguing the party further, union leaders and centre-left campaigners, including Andy Burnham, are mobilizing through a network called Mainstream to steer the party’s direction. Meanwhile, the key union Unite—a major Labour funder—publicly warned against diluting workers' rights, suggesting its support may be conditional on Labour keeping its manifesto promises.
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Crystallizing Party Crisis

Labour now faces a deadly combination of public distrust, internal divisions, and rising opposition from Reform UK, which capitalizes on debates over immigration and economic discontent. With declining poll numbers and major fiscal challenges looming, this reshuffle could either be a rebranding effort or a sign of deepening instability.
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