Labour faces internal battle over deputy leadership following Rayner’s exit
Ms Rayner resigned as Deputy Prime Minister, Housing Secretary, and Deputy Leader of the Labour Party on Friday following a misconduct investigation triggered by allegations of tax evasion.
The Prime Minister used her resignation to initiate a significant overhaul of his top team to regain control of the political narrative.
David Lammy was appointed Deputy Prime Minister and transitioned to a new role as Justice Secretary, after serving as the UK’s top diplomat – the Foreign Secretary – over the last year.
Shabana Mahmood, previously the Justice Secretary, is now the new Home Secretary, while Yvette Cooper has moved from the Home Office to take over Mr. Lammy’s former role as Foreign Secretary.
With Rachel Reeves remaining as Chancellor, the appointment of Ms. Mahmood and Ms. Cooper to their new positions marks the first time in history that all three of the so-called "great offices of state" are held by women.
Elsewhere, Pat McFadden, previously a senior Cabinet Office minister, is set to lead a new “super ministry” combining the Department for Work and Pensions and the skills remit of the Department for Education.
Steve Reed has taken over Ms. Rayner’s role as Housing Secretary, leaving his position as Environment Secretary.
Darren Jones, a rising Labour star who was recently appointed as the Chief Secretary to the Prime Minister, is also taking over Mr. McFadden’s former Cabinet Office role: the Chancellor of the Duchy of Lancaster.
In other changes, Peter Kyle has been appointed Business Secretary, while Jonathan Reynolds has been shifted from that post to become the Government Chief Whip, replacing Sir Alan Campbell, who is the new Leader of the House of Commons.
Lucy Powell, the former Commons leader, was dismissed, as was former Scotland Secretary Ian Murray, now replaced by Douglas Alexander, who was previously a trade minister.
Liz Kendall, formerly Work and Pensions Secretary, is taking over Peter Kyle’s former role as Science Secretary.
The Cabinet reshuffle was concluded with Emma Reynolds’ appointment as Environment Secretary.
Writing on X, Mr. Lammy stated: "It is the honor of my life to be appointed Deputy Prime Minister, Lord Chancellor, and Justice Secretary by Keir Starmer.
"Ever since I was a boy growing up in Tottenham, I’ve been determined to help make this country fairer, safer, and better off."
Mr. Lammy also commended Ms. Rayner for the "tremendous job" she did in the government.
— Angela Rayner (@AngelaRayner) September 5, 2025
Lisa Nandy, who has faced months of criticism, remains as the Culture Secretary, and Ed Miliband also remains as Energy Secretary.
Downing Street sources assert that the reshuffle leaves the Government revitalized and reinvigorated.
The Government has been given a new “sense of purpose” by the shake-up, a source stated.
However, challenging times are certainly ahead for Sir Keir, with an internal election to replace Ms. Rayner as Labour’s Deputy Leader on the horizon.
The contest could highlight the divide between different Labour factions and their stances on Sir Keir’s performance in No. 10.
Left-wing Labour MP Richard Burgon has already warned against the race to replace the Deputy Leader—a figure meant to bridge the party grassroots—becoming a “stitch-up.”
Ms. Rayner resigned as Deputy PM, Housing Secretary, and Deputy Labour Leader after Sir Keir’s ethics adviser stated she failed to “heed the caution” contained within the legal advice she received when purchasing an £800,000 property in Hove.
Yvette Cooper, David Lammy, and Shabana Mahmood have been given new positions in a major Cabinet reshuffle. Picture: Getty/Alamy
The outgoing Deputy Prime Minister admitted she underpaid stamp duty on the flat and referred herself to Sir Laurie Magnus, the independent ethics adviser.
In a letter published on Friday, Sir Laurie said he believed Ms. Rayner had acted in “good faith,” but that “the responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves.”
Ms. Rayner told the Prime Minister in a letter on Friday that “I deeply regret my decision to not seek additional specialist tax advice” and said she took “full responsibility for this error.”
In his response, Sir Keir said Ms. Rayner would “remain a major figure in our party” and “continue to fight for the causes you care so passionately about.”
The major government shake-up comes shortly after Sir Keir initiated a smaller reshuffle and made new back-office appointments, marking the beginning of what he described as “phase two” of his administration, focused on delivery.
Conservative leader Kemi Badenoch commented: “Phase Two of Starmer’s Government didn’t even last three days. He was too weak to fire the Deputy Prime Minister, even after being told she broke the ministerial code, and now he’s merely rearranging deckchairs on his sinking Government.”
“ The Labour Party is now engaged in a civil war for its deputy leadership. All of which will be an enormous distraction from the challenges facing Britain, with the cost of borrowing at its highest in decades, and inflation and unemployment rising.”
Liberal Democrat leader Sir Ed Davey, meanwhile, cautioned Labour, warning that the reshuffle showed it was “learning the wrong lessons from the calamity Conservatives before them.”
“Until Keir Starmer is ready to tackle the real issues facing our country head-on, it makes little difference who sits around the Cabinet table,” he added.
Reform UK leader Nigel Farage moved forward a keynote speech at his party’s conference in Birmingham, claiming the Government is “deep in crisis” and “not fit to govern.”
Reform’s Zia Yusuf told LBC that Angela Rayner is guilty of “hypocrisy” after “hounding out” politicians over their own tax affairs.
Mr. Yusuf told Natasha Clark: "I think it’s critically important that politicians adhere to the rules. That’s the essential thing.
"And if you look at Angela Rayner, she by her own admission, has stated that she has underpaid tax. It’s difficult to have sympathy when she has personally driven many politicians out of office on the basis of this exact issue.
"So when we talk about hypocrisy. That’s precisely what it is."
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