UK’s Starmer Vows to ‘Act on’ Inquiry Into Deputy’s Tax Affairs

(Bloomberg) -- UK Prime Minister Keir Starmer said he would “act on” the outcome of an independent investigation into his deputy Angela Rayner’s tax affairs, signaling he would fire her if the inquiry found she had breached rules governing ministers’ behavior.

“I am expecting a result pretty quickly,” Starmer said in an interview with the BBC on Thursday afternoon, referring to a probe by his ethics adviser Laurie Magnus that was launched on Wednesday when Rayner admitted in a statement that she had underpaid property taxes on the purchase of a second home.

“Of course, I will act on whatever the report is that’s put in front of me,” the premier said, when asked if he would fire Rayner if Magnus concluded she had breached the ministerial code, which requires members of the government to act with integrity. 

“My experience is he will be comprehensive in the report that he gives me, it will be quick, and that’s what I’m expecting,” Starmer added. A government official said the report could be presented to the premier as soon as Friday.

Rayner, the deputy prime minister and housing secretary, is fighting for her political future after confirming media reports that she had underpaid stamp duty on the £800,000 ($1.1 million) purchase of a property in Hove, southern England. She says she didn’t act dishonestly, arguing she had followed legal advice given to her at the time that later proved incorrect.

Magnus’ investigation will decide her immediate fate. If he finds that she was given poor quality legal advice and acted in good faith, he may decide that is not a breach of the ministerial code. However, if he finds that she was reckless in not employing lawyers with sufficient expertise to handle her affairs, or that she did not give those lawyers enough information to give accurate advice, he could make a harsher judgment.

The outcome of the standards probe may have further political consequences for Labour. Rayner has been tipped as a potential successor to Starmer, following his stuttering performance during his first year in power. If she was to leave her post, it could trigger a major political battle for a senior leadership role in the party at a time when the prime minister is already under pressure.

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