Bridget Phillipson defends Angela Rayner as £40k stamp duty scandal engulfs labour’s Deputy PM

A row has erupted over Angela Rayner’s purchase of an £800,000 seaside flat in Hove, after claims the deputy prime minister avoided £40,000 in stamp duty.

The storm began when reports surfaced suggesting Rayner had declared the flat as her sole residence, a move that dramatically reduced her tax bill. The transaction came just weeks after she removed her name from the deeds of her Greater Manchester home, sparking allegations of hypocrisy and financial manoeuvring.

Bridget Phillipson, the education secretary, leapt to her colleague’s defence. Speaking to Times Radio, she insisted Rayner had “followed all the rules” and had every right to make choices about her personal finances. “Angela Rayner has been clear that she followed all the rules and requirements of her,” Phillipson said. “That is her position, that she has done everything that has been asked of her.”

Pressed on whether the deputy prime minister’s conduct was hypocritical, Phillipson replied: “If an individual wants to buy a property, whether that individual is Angela Rayner or anybody else, they are entirely within their rights to spend their money as they choose. Angela Rayner, as an adult with a salary, is able to make choices about how she spends her own money. So long as she’s followed all of the rules and requirements as a part of that, then I don’t think there’s anything more.”

But critics argue Rayner’s financial dealings present an uncomfortable contradiction. By removing her name from the deeds of her Ashton-under-Lyne home, she avoided the higher rate of stamp duty charged on second homes. At the same time, she is understood to have separately declared that same Greater Manchester property as her main residence, allowing her to avoid paying around £2,000 in council tax on her grace-and-favour apartment in Admiralty House, Whitehall.

The Mail on Sunday further claimed that in 2023 Rayner split ownership of the Ashton house with a trust administered by law firm Shoosmiths, raising further questions about the arrangements. Rayner’s office declined to comment when approached.

The controversy has gained additional political weight in the run-up to the budget. Chancellor Rachel Reeves is reportedly examining new property tax measures to plug a multibillion-pound gap in public spending. One proposal under consideration is scrapping stamp duty altogether in favour of an annual property tax.

This has handed ammunition to the Conservatives, who see a chance to paint Labour as hypocritical. Kemi Badenoch, the Conservative leader, seized on the row during a weekend interview. “Labour look set to wage a new war on family homes with more taxes like those that Labour ministers seemingly want to avoid paying themselves,” she said.

On Monday, Badenoch is expected to highlight the issue further, visiting homeowners in Reigate, Surrey, alongside shadow housing secretary James Cleverly. The party hopes the narrative of double standards will resonate with voters at a time when Labour is pitching itself as the party of economic responsibility.

Rayner, who also serves as housing secretary, now faces mounting pressure to explain her property dealings as the political storm shows no sign of abating. While Phillipson’s defence sought to steady the waters, the scandal threatens to overshadow Labour’s budget messaging and revive public scepticism about politicians’ honesty over tax and property.

With Labour preparing to unveil its economic plans, the timing could hardly be worse for the deputy prime minister. The clash between personal financial conduct and party policy is set to dominate headlines in the days ahead