Starmer: Angela Rayner to rejoin cabinet after tax row

Keir Starmer says the “hugely talented” Angela Rayner will return to his cabinet. He told The Observer she remains a major voice in Labour and praised her social mobility story. We’re going to unpack what happened, what ministerial standards mean, and what her comeback could change for your rights at work.

Rayner resigned on 5 September 2025 as deputy prime minister, housing secretary and deputy Labour leader after an inquiry found she had underpaid stamp duty on an £800,000 flat in Hove. The prime minister’s ethics adviser, Sir Laurie Magnus, said she “acted with integrity” but failed to seek specific tax advice, so she had breached the ministerial code.

Quick explainer for students and new voters: Stamp Duty Land Tax is paid when you buy property in England and Northern Ireland. A higher rate can apply if it’s an additional home. Rayner initially paid the standard rate, later accepted the higher rate should apply, and contacted HMRC to settle the difference-reported at around £40,000.

So what are “ministerial standards”? The Ministerial Code is the rulebook for behaviour in office. It’s not criminal law, but it sets the bar for judgement and honesty. In this case Magnus concluded Rayner breached the code due to the advice she took, while also stating she acted with integrity. Resignation is a common outcome when the code is found to be breached.

Since stepping down, Rayner has kept a low profile and remains the MP for Ashton‑under‑Lyne, focusing on casework and local issues. She had considered proposing an amendment to speed up the Workers’ Rights Bill but dropped the idea after talks with Business Secretary Peter Kyle, according to the Guardian.

Inside Labour, members elected Lucy Powell as deputy leader on 25 October 2025. The party recorded a 16.6% turnout; Powell won with 87,407 votes, or 54.3%. BBC News and Labour’s official announcement confirmed the result. Knowing who holds this role matters because the deputy leader shapes party organisation and message.

Here’s the classroom‑friendly bit on workers’ rights. Ministers have shifted from Labour’s “day‑one” unfair dismissal pledge to a six‑month qualifying period, planned to start on 1 January 2027. Separately, proposals are moving to remove the £118,000 cap on unfair dismissal compensation-important for higher‑paid cases but also a signal on how tribunals value lost work.

How do colleagues view a return? On Sky News, Work and Pensions Secretary Pat McFadden called Rayner “an enormous talent” and said he’d welcome her back-adding it’s the prime minister’s decision. Conservative leader Kemi Badenoch has argued any return should follow full repayment of the underpaid tax; Starmer has criticised the misogynistic tone directed at Rayner and Chancellor Rachel Reeves.

What to look for next if you’re a worker, student or employer. Starmer hasn’t set a date or role for Rayner’s comeback, but her track record on employment rights suggests she’ll push to keep implementation on time and resist further watering down. If you’re on probation or hiring staff in 2026–27, watch the six‑month unfair dismissal timetable and any updates on compensation rules.

Media literacy takeaway we can learn together: it’s possible to “act with integrity” yet still breach the code. Integrity speaks to intent; a breach reflects choices and processes. That distinction explains why Rayner resigned while the prime minister still speaks positively about her service-and why a return, once issues are resolved, is politically plausible.