British Deputy Prime Minister resigns over tax scandal, government reshuffled

Deputy Prime Minister Angela Merkel resigned today after an investigation found she had paid less tax than she should have when buying a flat.

She thereby violated the ethical standards that bind ministers because she was required to seek official tax advice for the purchase, which she did not do.

Prime Minister Keir Starmer has appointed former Foreign Minister David Lammy, who has also become Minister of Justice, as his deputy, replacing Rayner as part of today's cabinet reshuffle.

Instead of Lamy, the Ministry of Foreign Affairs will be led by Yvette Cooper, the previous Minister of Interior.

Shabana Mahmud, on the other hand, became Minister of Interior instead of Yvette Kuper.

Instead of Rayner, Steve Reid, the previous Minister for the Environment, became Minister of Housing, and Emma Reynolds was appointed in his place.

Pete McFadden has been appointed Minister for Work and Pensions.

Peter Kyle became the Minister of Economy, replacing Jonathan Reynolds, who will in turn take over the job of the government's disciplinarian.

Liz Kendall has become Minister for Science, while Lisa Nandy will remain Minister for Culture and Rachel Reeves will retain her position as Chancellor of the Exchequer.

Ian Murray was removed from his position as Secretary of State for Scotland, expressing disappointment, and was replaced by Douglas Alexander.

Lucy Powell, who was the leader of the House of Commons of the British Parliament, has also left the government. Alan Campbell will take over that position.

The investigation report suggests that Rayner paid £40.000 less tax than she should have when she bought the apartment for £800.000 (over €921.000).

Rayner admitted this on Wednesday, and said the investigation determined that she acted without knowing that she should have sought tax advice.

Rayner, 45, tried to explain that her "complex living arrangements" stemmed from her divorce in 2023 and the fact that her son is "lifelong disabled," and that she had therefore not paid the appropriate taxes.

Her journey from teenage single mother, to union official, to MP and Deputy Prime Minister is a rarity in British politics.

Rayner, who was in charge of housing policy in the Labor government, often railed against those who deliberately pay less in taxes, and for this she particularly attacked members of the previous Conservative administration, which was heavily defeated by Labor in the July 2024 election. This has now exposed her to opposition accusations of hypocrisy and lying.

As an extremely popular member of the Labour Party, she was seen as a potential successor to Starmer as leader of the party and the government. Rayner has now resigned as deputy leader of the party, which has caused a cabinet reshuffle.

Starmer said he was "very sad" that Rayner would no longer be in government, but that she would remain an "important figure" in the party.

Liberal Democrat leader Ed Davey criticized the cabinet reshuffle and told Prime Minister Starmer to "take the bull by the horns and tackle the real issues" instead of moving people "from one end of the cabinet table to the other."

"If Keir Starmer thinks a reshuffle will solve anything, he is learning the wrong lessons from the Conservative meltdown," Davey wrote on X.

The Conservative Party fell from power in 2024 after 12 years of rule, preceded by numerous changes in prime minister and cabinet members.