Keir Starmer is conducting a major reshuffle of the Cabinet after Angela Rayner's resignation from government.
The Deputy Prime Minister was last night battling to save her political future after saying she received incorrect legal advice on her £800k flat in Hove, which meant she could have saved around £40,000. But on Friday, Ms Rayner said she would step down as Deputy Prime Minister, Housing Secretary, and Deputy Labour leader - an elected position.
It came as the PM's ethics adviser concluded Ms Rayner "acted with integrity and with a dedicated and exemplary commitment to public service" - but said he considered there had been a breach of the ministerial code.
Downing Street is expected to reveal full details of the reshuffle later today.
Follow all the latest updates on this breaking news story below
David Lammy - who was Foreign Secretary - has been given the post of Deputy Prime Minister, a role held by Angela Rayner until her resignation this morning.
He will also be moved from the Foreign Office to become Justice Secretary. There is speculation Yvette Cooper will become Foreign Secretary, with Shabana Mahmood becoming Home Secretary.
Some warm words for Angela Rayner from former Cabinet member Peter Kyle.
The Technology Secretary said: "Angela Rayner is someone who's dedicated her life to making Britain a place where everyone can succeed. Because of her millions will have a secure job and a safe home to live in. I am proud to call her a friend."
Ian Murray says he's 'hugely dissapointed' after being sacked in Keir Starmer's reshuffle.
In a statement the former Scottish Secretary said he now looks forward to spending time with his family after the an "immeasurable strain" being in the Cabinet had on his private life.
Ian Murray wrote: "I will remain as impatient for change as the public. Politics in the UK, and elsewhere, now is at a dangerous crossroads. It is the responsibility of us all in public life to make an argument for progressive change that brings prosperity, hope and our communities together, rather than furthering division and despair."
He added: "I am hugely disappointed to be leaving government, with so much done and so much more to do, but I now look forward to spending a little more time with my wife and two beautiful girls, while continuing to serve the wonderful people of Edinburgh South."
The Commons leader Lucy Powell confirms she's been sacked from Cabinet by Keir Starmer as he conducts his reshuffle.
In a statement posted on X, she said: "I spoke to the Prime Minister earlier today and he informed me of his intention to appoint a new Leader of the House of Commons. It has been an honour to serve in the first Labour Government in 15 years, particularly as Leader of the House."
And she added: "This has not been an easy time for the Government. People want to see change and improvements to their difficult lives.
"Nor in politics more generally, not least with the rise of abuse, misrepresentation, social media echo chambers and the call for easy answers. As women in public life, we experience this all the more."
A Statement from me: pic.twitter.com/5NmhJeKDRV
— Lucy Powell MP (@LucyMPowell) September 5, 2025
"Angela Rayner has been a brilliant Deputy Prime Minister and trailblazing Secretary of State – from investing in council homes, to strengthening workers’ rights, and always backing what cities like London can achieve," the Labour Mayor of London Sadiq Khan has posted on X.
He added: "She is a role model to millions. She’s shown real leadership with heart, and changed lives across our city and our country."
It seems as though Keir Starmer's reshuffle of the Cabinet is now properly underway.
It is understood Rachel Reeves, the Chancellor, will remain in post.
But there are reports Lucy Powell, the leader of the Commons, and the Scottish Secretary Ian Murray are out of the Cabinet. There's no official response from No10 so far.
Former Labour leader and Cabinet Minister Ed Miliband has responded to Angela Rayner's exit from the government, saying: "Angela Rayner is one of the great British political figures of our time.
"Generations will grow up with stronger rights at work and in new homes because of her vision and leadership.
"I know she will continue to stand at the front of the fight for social justice in this country."
Housing Minister Matthew Pennycook - who worked alongside Ms Rayner - added: "It has been both a pleasure and a privilege to work with Angela Rayner over the past two years.
"She’s put her heart and soul into delivering for this Labour government and leaves a legacy to be proud of."
Former Shadow Cabinet minister Jonathan Ashworth says his friend Angela Rayner was one of the Cabinet's "super-star performers".
In a post on X, he said: "A real class act. Everyone understandably focuses on her background but let’s be clear, she rose to Deputy PM because of her phenomenal political talent."
He added: "There is no sugar coating it. Losing Ange is a real blow to the Labour government though. She’s a brilliant campaigner. She played a massive role in our historic victory last year.
"Everyone across the Labour movement will be feel really sad and hoping she can bounce back." Mr Ashworth also paid tribute to Ms Rayner's "first class" team.
Keir Starmer's Chief Secretary in No10, Darren Jones, also says: "Angela Rayner achieved a huge amount for the country this past year - record investment in council housing and better pay and rights at work.
"For our Labour movement Angela is the embodiment of social mobility and an inspiration to those of us from working class backgrounds."
Health Secretary (at least for now) Wes Streeting has reacted to Angela Rayner's departure from the government, saying: "Angela Rayner has achieved more in the last year than most politicians achieve in a lifetime - a trailblazer for working class kids from backgrounds like ours.
"When those kids have a council house, when their mums and dads have better rights and pay, they’ll have her to thank."
Here is Keir Starmer's letter to Angela Rayner on her resignation in full:
"Dear Angela,
"Thank you for informing me of your decision to resign from the Government. I am very sad that your time as Deputy Prime Minister, Secretary of State and Deputy Leader of the Labour Party has ended in this way.
"As you know we acted in accordance with the strengthened system relating to ministerial conduct that we put in place on coming into Government.
"You were right to refer yourself to the Independent Adviser on Ministerial Standards and right to act on his conclusion.
"Although I believe you have reached the right decision, it is a decision which I know is very painful for you. You have given your all to making the Labour Government a success and you have been a central part of our plan to make Britain fairer for working families.
"Your work at MHCLG (Ministry of Housing, Communities and Local Government) to help build the homes that Britain needs has been hugely important and your work to create more fairness in the workplace through the Employment Rights Bill represents a very significant achievement that will change the lives of millions of people.
"On a personal note, I am very sad to be losing you from the Government. You have been a trusted colleague and a true friend for many years. I have nothing but admiration for you and huge respect for your achievements in politics.
"I know that many people of all political persuasions admire that someone as talented as you is the living embodiment of social mobility.
"Even though you won't be part of the Government, you will remain a major figure in our party. I know you will continue to fight for the causes you care so passionately about.
"My very best wishes and with real sadness, Keir."
Ethics watchdog Sir Laurie Magnus said Angela Rayner's actions failed to meet the "highest possible standards of proper conduct" over her failure to pay the correct level of stamp duty.
He said she had "acted with integrity and with a dedicated and exemplary commitment to public service", but concluded she breached the ministerial code over her tax affairs.
Sir Laurie said that on the basis of the advice she had received from her lawyers, Ms Rayner believed that the lower rate of stamp duty would be applicable on the Hove flat purchase and was twice informed in writing that this was the case.
But in both instances that advice was qualified by the acknowledgement that it did not constitute expert tax advice and was accompanied by a suggestion, or in one case a recommendation, that specific tax advice be obtained - something she did not do until after the media pressure on her over the flat.
In a letter to Sir Keir Starmer, Sir Laurie said her "unfortunate failure" to pay the correct stamp duty" coupled with the fact that this was established only following intensive public scrutiny" led him to conclude she had not met the highest possible standards.
No10 has confirmed Keir Starmer is conducting a reshuffle of his government after Angela Rayner's departure.
It is understood Rachel Reeves will remain as Chancellor - but the changes are expected to be sweeping.
In a letter to Keir Starmer - published just moments ago - Angela Rayner has confirmed her exit from government.
She has resigned from all three of her positions, including the elected position of Deputy Labour leader, an elected position among party members.
She says: "For a teenage mum from a council estate in Stockport to serve as the highest level of government has been the honour of my life. The challenges of government are nothing compared to the challenge of putting food on the table and getting a roof over our head when I brought up kids working as a home help. Too many people face the same across our country."
She adds: "I have been lucky to work alongside the most talented group of Ministers who worked with dedication to deliver for working people.
"For me, being in office is the chance to change the lives of the people I grew up alongside. I will do whatever I can to continue doing so. Thank you for your leadership and for your friendship. I will continue to serve you, our country and the party and movement I love in the weeks, months and years ahead.
Angela Rayner's resignation letter in full as she quits as Deputy PM
We're still waiting for official confirmation from Downing Street on Angela Rayner's resignation - with the usual exchange of letters. It is not yet clear whether Ms Rayner will also quit as deputy leader of the Labour Party - an elected position.
But the expected resignation of Ms Rayner from government is likely to spark a government reshuffle, with Mr Starmer forced to fill the post of Housing Secretary .
A report by Keir Starmer's ethics adviser on Angela Rayner's tax affairs landed on the Prime Minister's desk this morning.
Ms Rayner had referred herself to Sir Laurie Magnus just 48 hours ago when she admitted not paying enough stamp duty on her £800k seaside flat in Hove, East Sussex.
She claimed at the time it was a result of the incorrect legal advice.
We'll bring you updates from Sir Laurie's report shortly...
