Sir Keir Starmer could be forced into a decision over Angela Rayner’s future as early as today, as the prime minister’s ethics adviser prepares his verdict on the Labour deputy’s tax affairs.
Ms Rayner, who is also the housing secretary, has been under mounting pressure since she admitted not paying the correct amount of stamp duty on an £800,000 flat in Hove, East Sussex.
She has argued the mistake was made as a result of incorrect advice from a conveyancer and two trust law experts, who told her she did not need to pay the higher rate reserved for second home purchases.
Her case was thrust into doubt late on Thursday when the conveyancing firm – Verrico & Associates – said it did not provide advice and had been made “scapegoats” in the political row.
Its managing director, Joanna Verrico, told The Daily Telegraph while it had acted for Ms Rayner when she bought the property, no tax or trust advice was provided.
Any advice she may have received will form a key plank of an investigation by Sir Keir’s independent ethics guru, Sir Laurie Magnus, who Ms Rayner referred herself to earlier this week.
Downing Street has said the prime minister expects a “quick” verdict, and he has refused to rule out sacking his second-in-command.
“I will act on whatever the report is that’s put in front of me,” Sir Keir told the BBC on Thursday – and that report may well arrive on his desk today.
Sir Laurie has concluded investigations into ex-ministers Nadhim Zahawi and Tulip Siddiq within days – and Sky’s chief political correspondent Jon Craig reports he’s due to go on holiday on Saturday.
He is assessing whether Ms Rayner broke ministerial rules, which place an “overarching duty on ministers to comply with the law”, “behave in a way that upholds the highest standards of propriety”, and “be as open as possible” with the public.
Conservative leader Kemi Badenoch has said Ms Rayner must go.
In a statement following the intervention by Verrico & Associates, she said: “This is yet more damning evidence that Angela Rayner has not been honest with the British public.
“She must resign or Keir Starmer must finally find the backbone to sack her.”
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Sir Laurie Magnus has a record of quick verdicts. Pic: Gov.uk
The row began when The Daily Telegraph first claimed Ms Rayner avoided £40,000 in stamp duty on the flat in Hove by removing her name from the deeds of another property in Greater Manchester.
Ms Rayner said she sold her stake in her family home in Ashton-under-Lyne to a trust that was set up to provide for her teenage son, who has lifelong disabilities – meaning she did not technically own that home when she purchased the flat, and so was not subject to the higher rate of stamp duty that applies to second homes.
She has described it as an “honest mistake”, and tearfully revealed on Sky News’ Electoral Dysfunction podcast she had already considered resigning.
She said she realised what had happened after seeking fresh legal advice, having spent weeks dismissing questions about the tax claims.
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What does Rayner’s tax issue mean for the Starmer project?
Were Ms Rayner to depart, it would make for a difficult end to a week which began with Sir Keir confidently declaring “phase two” of his government was now under way.
She is overseeing some of his key targets – notably building 1.5 million new homes this parliament, and a large expansion of workers’ rights.
