Cabinet reshuffle live: Starmer makes Lammy deputy PM and Cooper foreign secretary after Rayner resignation

WorldPolitics
5 Sep 2025 • 11:22 PM MYT
The Independent
The Independent

The world’s most free-thinking newspaper

image is not available

Sir Keir Starmer is set to make David Lammy deputy prime minister as the PM embarks on a major cabinet reshuffle following Angela Rayner stepping down from her government roles after an investigation into her tax affairs.

Yvette Cooper will be moved from home secretary and take up a new role as foreign secretary, with justice secretary Shabana Mahmood replacing her at the Home Office.

David Lammy will also become justice secretary as well as deputy PM. Lucy Powell, the leader of the House of Commons, and Scottish secretary Ian Murray have been sacked from their roles this afternoon.

The prime minister’s reshuffle comes after Ms Rayner stepped down after ethics adviser Sir Laurie Magnus found that she had breached the ministerial code over her underpayment of stamp duty on her £800,000 flat in Hove, East Sussex.

She told the prime minister in a letter that "I deeply regret my decision to not seek additional specialist tax advice" and took "full responsibility for this error".

In a letter responding to her resignation, the prime minister said he was "very sad" that her time in government had come to an end and that he had "nothing but admiration" for her.

Key Points

  • Starmer cabinet reshuffle: Who is in and who is out as PM overhauls his top team
  • Reshuffle: Lammy new deputy PM, Cooper moves to justice and Mahmood promoted to home secretary
  • Rayner quits government over stamp duty row
  • Analysis: Angela Rayner’s resignation is a disaster for Starmer and Labour
  • Who could replace Angela Rayner as she resigns over stamp duty row?

BREAKING NEWS

16:00

,

Joe Middleton

David Lammy will be deputy prime minister and justice secretary.

Shabana Mahmood is replacing Yvette Cooper at the Home Office and will become the new home secretary.

And Ms Cooper will be appointed foreign secretary.

Yvette Cooper 'to be sacked from Home Office'

15:47

,

Joe Middleton

Yvette Cooper is set to be sacked from her job as home secretary, according to reports.

Sir Keir Starmer has embarked upon a major reshuffle after Angela Rayner stepped down as deputy prime minister following an investigation into her tax affairs.

The Telegraph is reporting that Ms Cooper could be moved to foreign secretary.

There is speculation that justice secretary Shabana Mahmood, is in prime position to take Ms Cooper’s job at the Home Office.

Watch: Andrea Jenkyns belts out own song in bizarre Reform conference entrance

15:38

,

Joe Middleton

Starmer cabinet reshuffle: Who is in and who is out as PM overhauls his top team

15:20

,

Joe Middleton

The Independent’s Archie Mitchell reports

Sir Keir Starmer has launched a major cabinet reshuffle after Angela Rayner’s resignation as housing secretary and deputy prime minister.

The prime minister is seeking to relaunch his government as it lags behind Reform UK in the polls and struggles to deliver on key promises.

Ms Rayner resigned after Sir Keir’s ethics advisor concluded she had breached the ministerial code by failing to pay the correct amount of stamp duty on the purchase of an £800,000 flat in Hove.

image is not available

Scottish secretary Ian Murray sacked by Starmer

15:12

,

Joe Middleton

Ian Murray has been sacked as Scottish Secretary in Sir Keir Starmer's reshuffle, sources said.

Mr Murray has represented Edinburgh South since 2010 - and was the only Scottish Labour MP left in Westminster after the party's 2019 general election defeat.

A critic of former leader Jeremy Corbyn, Mr Murray has campaigned against Scottish independence and won the backing of Sir Tony Blair and Gordon Brown during an unsuccessful bid for the Labour deputy leadership in 2020.

In a statement on X he said it was a “privilege” to play a role in bringing Labour back to power.

Lucy Powell said it was an 'an honour' to serve in government and confirms sacking

14:58

,

Joe Middleton

Lucy Powell, the Leader of the House of Commons, has said it has been "an honour to serve in the first Labour Government in 15 years" as the Manchester Central MP confirmed she had been sacked in a post on X.

In a statement 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. It's been a role I've really enjoyed - overseeing the first Labour King's Speech in a generation with such an ambitious and transformative legislative programme, taking on vested interests in the service of ordinary people.

"I've also had a big agenda of modernising the Commons - I've tightened the rules on MPs' second jobs - with more to come, standing up for the different voices in the House, family-friendly measures and have been embarking on improved accessibility and inclusion. These are the changes a Labour Government can and should be making.

"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. The future of our democracy looks uncertain and Parliament and representational politics has an important role to play.

"Living and raising my children in my home city of Manchester has always given me a different perspective of politics. My first job has always been to represent the residents of Manchester Central, and I look forward to using my voice and my role on in Parliament to ensure they see the change they long for."

Nigel Farage football shirts on sale at Reform conference as supporters gather in Birmingham

14:45

,

Joe Middleton

Reform UK members and party activists are queuing up at this year’s conference to purchase party branded football shirts, emblazoned with the names of MPs and key party figures.

The shirts, which are flying off the shelves, are being sold for £40 - or particularly keen activists can buy two for £75.

For those who wanted something cheaper there were £15 caps or football terrace themed scarves to cheer on their top team.

image is not available

'Mixed feelings' in Hove around Rayner's resignation

14:39

,

Holly Evans

Locals gathered outside Angela Rayner’s seaside flat in Hove discussed “mixed feelings” about the outgoing deputy prime minister.

“She was very busy and when you are busy you don’t always use common sense,” said Ann, who is from Australia but lives in the UK.

The group echoed that it was a “shame” but agreed with Ann that “£40,000 is an awful lot of money for some people”.

image is not available

They added that they thought Ms Rayner was telling the truth and that it was “hard to tell” if she was responsible for the mistake.

“I think it’s most unfortunate the whole thing,” said Elaine, 88, who has lived in Hove since she was 11.

Others in the area have been much less charitable, shaking their heads at the mention of Ms Rayner and calling for her to be sacked.

Another local, Paul, said: “They’re all the same, different rules for them than it is for us.”

Starmer will appoint a new deputy prime minister

14:31

,

Holly Evans

The BBC has reported that Sir Keir Starmer is expected to appoint a new deputy prime minister.

The person in this role will have a significant leadership role within the ruling party.

Nadine Dorries speaks publicly for first time since defecting to Reform UK

14:30

,

Joe Middleton

Lucy Powell and Ian Murray sacked from cabinet, Sky News reports

14:22

,

Holly Evans

Lucy Powell, who has served as leader of the House of Commons since the general election, has been sacked, Sky News reports.

Another reported sacking is Ian Murray, the Scotland secretary, who is also understood to be leaving government.

The prime minister is currently re-shuffling his top team in the wake of Angela Rayner’s resignation.

Jacob Rees-Mogg rumoured to be next Reform defector

14:14

,

Joe Middleton

The Independent’s political editor David Maddox has heard chatter that Jacob Rees-Mogg could be the next in line to join Nigel Farage’s party.

It comes just a day after Nadine Dorries, a former key Boris Johnson ally, joined the party.

Hove locals lament 'unfortunate' Rayner tax controversy

14:08

,

Joe Middleton

Locals gathered outside Angela Rayner's seaside flat in Hove discussed "mixed feelings" about the outgoing deputy prime minister.

"She was very busy and when you are busy you don't always use common sense," said Ann, who is from Australia but lives in the UK.

The group echoed that it was a "shame" but agreed with Ann that "£40,000 is an awful lot of money for some people".

They added that they thought Ms Rayner was telling the truth and that it was "hard to tell" if she was responsible for the mistake.

"I think it's most unfortunate the whole thing," said Elaine, 88, who has lived in Hove since she was 11.

Others in the area have been much less charitable, shaking their heads at the mention of Ms Rayner and calling for her to be sacked.

Another local, Paul, said: "They're all the same, different rules for them than it is for us."

Farage vows to deport foreign criminals

13:51

,

Joe Middleton

Nigel Farage said he was going to have lunch with the Albanian premier to talk about deporting foreign criminals and that a Reform UK government would stop the boats within two weeks.

Mr Farage said: "We will deport foreign criminals.

"I'm off to have lunch in a few weeks with the prime minister of Albania. I might book a very big plane and take a load with me, I'm not sure yet.

"We will stop what is a threat to our national security, what is a danger to girls and women on our streets.

"We will stop the boats and we will detain and deport those who illegally break into our country, doing what nearly every normal country around the rest of the world does.

"You cannot come here illegally and stay - we will stop the boats within two weeks of winning government."

image is not available

Farage says country is 'in a very bad place' and Reform will get it back on track

13:47

,

Joe Middleton

Nigel Farage said the country is "in a very bad place" and that Reform UK is "the last chance" to get it back on track.

He told Reform UK supporters: "Our country is in a very bad place. It's a mixture between anger and despair."

He said there was "societal breakdown" and "cultural decline".

"I get this in the street from people, people point at me and say, 'You are the last chance we've got to get this country back on track'. We are the last chance the country has got to get this country back on track."

He also said there is "barely a lamp-post" without a St George's or Union flag on it.

"British people are sticking two fingers up with every flag they place, to an establishment that doesn't believe in Britain, to an establishment that thinks more of the interests of other countries and foreign courts than it thinks about its own people."

Rayner’s resignation shows this government is worse than the last, Farage declares in Reform conference speech

13:45

,

Joe Middleton

The Independent’s Millie Cooke reports

Angela Rayner’s resignation shows this government is “as bad – if not worse – than the one that went before”, Nigel Farage has told the Reform UK party conference in his main stage address.

Ms Rayner sensationally quit as deputy prime minister and housing secretary just one hour before Mr Farage took to the stage after an investigation into her tax affairs over her purchase of an £800,000 flat in Hove, East Sussex.

Capitalising on the chaos within government, the Reform UK leader said the scandal “screams to entitlement”.

image is not available

Miliband praises Rayner as one of the 'great British political figures of our time'

13:38

,

Joe Middleton

Energy minister Ed Miliband has paid tribute to Angela Rayner, calling her one of the “great British political figures of our time”.

In a post on X, he added: “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.”

Nigel Farage introduces new Reform member and former Tory MP Nadine Dorries

13:30

,

Joe Middleton

The Independent’s political editor David Maddox reports:

As he finishes his speech Nigel Farage admits "We have one weakness. We need people with experience of government" as he introduces Nadine Dorries to conference.

After making her way on stage Ms Dorries makes her Reform debut with a swipe at her old party. "It is so nice to be at a conference where people believe the same things as I do."

image is not available

Farage: Starmer's government is in crisis

13:25

,

Joe Middleton

Nigel Farage is continuing to speak at his party’s conference in Birmingham.

He said he had brought forward his keynote speech at Reform UK's party conference after Ms Rayner's resignation because the government is "deep in crisis" and "not fit to govern".

He said Sir Keir Starmer's Cabinet was full of "wholly unqualified people" and joked about Ms Rayner being "an accomplished property developer and speculator".

Cult-like Reform activists chant “Nigel will be prime minister”

13:21

,

Joe Middleton

The Independent’s political correspondent Millie Cooke reports:

At the end of Andrea Jenkyns’ address to the Reform conference, she commanded party activists to “stand up and be proud to be the party of the brave”.

In an episode that was indisputably cult-like in nature, she then got members to chant “Nigel Farage will be prime minister”.She closed off her address by shouting - to wild applause - “Reform will save Britain”.

Nigel Farage has kicked off his speech at Reform conference

13:15

,

Joe Middleton

The Reform UK leader has taken to the stage and started his speech which he brought forward to 1pm after Angela Rayner’s resignation.

Nigel Farage says the Rayner scandal "screams of entitlement...this government is worse than the one which went before."

image is not available

Major reshuffle expected this afternoon after bombshell Rayner resignation

13:06

,

Joe Middleton

A major reshuffle is expected this afternoon after Angela Rayner’s resignation, according to reports.

Sir Keir Starmer is expected to rejig his team after Ms Rayner’s departure, with only chancellor Rachel Reeves position understood to be safe.

The prime minister thinks he needs a “new refreshed team to deliver on the country’s key priorities”, as reported by The Times.

Sir Keir Starmer's letter to Angela Rayner in full

13:01

,

Joe Middleton

"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."

Watch: Badenoch slams Starmer after Rayner resigns: 'Britain deserves better'

12:58

,

Joe Middleton

Farage brings forward leader's speech at Reform conference after Rayner quits

12:52

,

Joe Middleton

Nigel Farage has brought forward his leader's speech at the Reform UK conference in the wake of Angela Rayner's resignation as deputy prime minister.

The Reform leader will speak at 1pm, three hours earlier than previously expected.

Mr Farage has said there will be "splits" within Labour when it begins the process to elect a new deputy leader.

In a video posted on X, Mr Farage said: "It was inevitable, wasn't it? Really, you can't be Housing Secretary and avoid £40,000 worth of stamp duty. It's just as simple as that.

"So, in the last few minutes, Angela Rayner has gone, but not just as Housing Secretary.

"Now, more significantly, she's gone as deputy leader of the Labour party and Deputy Prime Minister.

"That means there will be an internal election within the Labour party, and you're going to see the hard left of Labour shouting very, very loudly for the last few years, the story has been splits within the Conservative Party.

"Mark my words: Within weeks, it'll be splits within the Labour party."

Angela Rayner: How working-class hero who rose through Labour ranks became mired in tax scandal

12:46

,

Joe Middleton

The Independent’s Archie Mitchell reports:

If you asked anyone in Labour circles before Wednesday who was Sir Keir Starmer’s most likely successor, the chances are they would have said Angela Rayner.

The deputy prime minister was a cabinet favourite with members and a darling of Labour’s trade union backers.

But in a dramatic development on Friday, Ms Rayner was forced to resign - not only as housing secretary, but also as deputy prime minister and deputy leader of the Labour Party, a position elected by the party membership.

image is not available

PM: I am very sad to be losing you from the government

12:34

,

Joe Middleton

Sir Keir Starmer told Angela Rayner he was "very sad" that her time in government had come to an end and that he had "nothing but admiration" for her.

In a letter responding to her resignation, the Prime Minister said: "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."

He said she was right to have referred herself to the independent adviser on ministerial standards.

Sir Keir said: "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."

He added: "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."

image is not available

Who could replace Angela Rayner as she resigns over stamp duty row?

12:31

,

Joe Middleton

Angela Rayner has resigned after she admitted she did not pay enough stamp duty on the purchase of her £800,000 seaside flat.

The deputy prime minister, who on Wednesday referred herself to Sir Keir Starmer’s ethics adviser, insisted she made a mistake based on the advice she received at the time.

And, after receiving the report’s conclusion, Ms Rayner has the has quit her roles as housing secretary and deputy prime minister, as well as her role as deputy leader of the Labour Party.

Who could replace her as deputy prime minister?

image is not available

Reform members high fiving Rayner news at Birmingham party conference

12:25

,

Joe Middleton

The Independent’s political editor David Maddox writes:

When Angela Rayner’s resignation went up on the centrally placed GB News stand at the Reform conference in Birmingham there were cheers.Reform members in their new football shirts and caps started high fiving one another.

“They’re almost finished,” one Reform member said of the Labour government.“We’ll be in power in a year,” said another optimistically.

The chaos outside the conference has only fuelled a growing sense of optimism of the people here at the NEC.

Rayner: I take full responsibility for this error

12:24

,

Joe Middleton

Angela Rayner has told Sir Keir Starmer in a letter that "I deeply regret my decision to not seek additional specialist tax advice" and took "full responsibility for this error" as she resigned as deputy prime Minister, housing secretary and deputy leader of the Labour Party.

In the letter Ms Rayner added that she had “no intention” of doing anything other than pay the correct amount of stamp duty.

image is not available

Analysis: Angela Rayner’s resignation is a disaster for Starmer and Labour

12:17

,

Joe Middleton

The Independent’s political editor David Maddox writes:

Angela Rayner’s departure from government in disgrace over her tax affairs is a disaster for a Labour administration that is already struggling to keep its head above water.

The now former deputy prime minister has fallen foul of the ethics adviser on avoiding paying £40,000 in tax on her Brighton flat.

Privately, ministerial colleagues were even more concerned about the fact she had tried to use her disabled son’s problems as a cover story and had apparently used money from the trust set up for him to buy the property to be nearer her partner.

For a woman who was being discussed as a replacement leader and prime minister for the beleaguered Keir Starmer up until last week this is a really bitter turn of fortunes.

But in the end she could not hold on. At a time when Labour is planning to put up taxes by even more the leaflets from opponents would write themselves: “Rachel Reeves puts up your taxes, Angela Rayner avoids them.”

In reality once she made the admission over failing to pay tax she should have gone immediately. These situations are always untenable.

It was a sign of Sir Keir Starmer’s own weak position that he stood by her for 48 hours.

This is a pair who called people “criminals” for eating cake during lockdown.

Perhaps Sir Keir, who has been accused of having a woman problem, did not want to be seen to abandon one of the two most senior women in his government.

Maybe it was her strong working class background in a very middle class government of former student activists.

One senior figure told The Independent that there is now a big problem of balance in the government.

The left of the party no longer has a senior representative around the cabinet table. Perhaps only energy secretary Ed Miliband is from that wing of the party.

Once she recovers Ms Rayner could become a formidable problem for Sir Keir on the backbenches with a party on the edge of revolt over Middle East policies, bad polls and welfare cuts.

The person laughing most will be Nigel Farage as he prepares to address the reform conference in Birmingham today.

BREAKING NEWS

12:16

,

Joe Middleton

Rayner has also resigned as deputy leader of the Labour Party, according to reports.

Rayner quits government over stamp duty row

11:59

,

Joe Middleton

Angela Rayner has quit as housing secretary and deputy prime minister following an investigation into her tax affairs by Sir Keir Starmer's independent standards adviser, it is understood.

Sir Keir received the report by ethics watchdog Sir Laurie Magnus on Wednesday morning.

The deputy prime minister has faced mounting pressure to stand down over recent days after admitting she underpaid stamp duty on a flat she bought in Hove earlier this year.

Ms Rayner, who is also the Housing Secretary, paid £40,000 less of the surcharge on the property than she should have, as she claimed it was her main home rather than a second home.

BREAKING NEWS

11:56

,

Joe Middleton

Prime minister Sir Keir Starmer has received the report by his independent ethics adviser into Angela Rayner's tax affairs and is considering its findings, the PA news agency understands.

Rayner 'expected to leave government job'

11:53

,

Joe Middleton

Angela Rayner’s is expected to leave her government job after an investigation into her tax affairs over her purchase of an £800,000 flat in Hove, East Sussex.

Government sources told Sky News and The Times that Ms Rayner will leave her post this afternoon after her failure to pay £40,000 in stamp duty.

Ms Rayner referred herself to ethics advisor Sir Laurie Magnus who has reportedly sent his report to Keir Starmer saying her position in government was untenable.

Her colleagues in government had lined up to defend her record on Friday morning, with trade minister Douglas Alexander on Friday morning telling Times Radio she was in politics “for the right reasons”.

The key events which brought Angela Rayner’s tax affairs to light

11:37

,

Joe Middleton

Angela Rayner is facing calls to resign after she admitted underpaying stamp duty on a seaside flat she bought earlier this year.

She bought the £800,000 property, in Hove, in May. It was then reported she paid £40,000 less in stamp duty on the flat than she should have if it were considered a second home.

This was because Rayner claimed it was her primary residence for the purpose of the purchase, after her name was removed from the deeds of her family home in Greater Manchester.

In conflict with this, Ms Rayner had elsewhere described the other property, in Ashton-under-Lyne, as her primary residence.

She has since revealed that the home is held in a trust, and is where she and her ex-husband jointly care for their disabled son.

Here is a timeline of how Ms Rayner’s tax affairs came to light:

image is not available

Analysis: Lobbyist presence at Reform UK shows business is starting to take Farage more seriously

11:27

,

Joe Middleton

The Independent’s political correspondent Millie Cooke writes:

The lobbyist presence at this year's Reform conference has massively ramped up - a clear sign that business is taking Reform much more seriously as the party surges in the polls.

While last year saw stands manned a few fairly niche companies, this year's conference has a significantly larger business presence.

Notably, there's a JCB tractor stand, a company owned by Lord Bamford - who has historically been a major Tory donor.

image is not available

Richard Tice stumbles in grilling over Keir Starmer and Kim Jong Un comparison

11:02

,

Joe Middleton

Richard Tice fumbled his words as he was grilled on why Sir Keir Starmer was like Kim Jong Un after both the deputy Reform UK leader and Nigel Farage compared the UK to North Korea.

Appearing on BBC Radio 4 on Friday (5 September), Mr Tice was repeatedly questioned by Nick Robinson on the comparison and said that Sir Keir is “authoritarian”.

After he was asked whether Sir Keir was like Kim for a third time, Mr Tice said that it is “good to use anecdotes and analogies at times”.

Mr Robinson fired back, calling it “offensive” to compare the prime minister to “one of the worst autocrats on the planet”.

Mr Tice said “what is really offensive” is punishing those who are "concerned about illegal immigration”.

image is not available

Tory leader calls for investigation into what Rayner was told about property tax rises in Budget

10:59

,

Joe Middleton

Away from the Reform UK conference, Kemi Badenoch has called on Sir Keir Starmer's independent ethics adviser to examine what Angela Rayner's department has said to the Treasury about the prospect of property tax rises in the Budget.

The Tory leader said correspondence from the Ministry of Housing, Communities and Local Government (MHCLG) should be included within the scope of the probe to avoid "accusations of a whitewash".

She said the public needed to know "whether the Deputy prime minister chose to sell her property ahead of the forthcoming Budget because she knew taxes were about to go up".

Mrs Badenoch said: "We already know that Angela Rayner was lobbying to increase stamp duty in the upcoming Budget.

"What we don't know is what other discussions she was having with the Treasury about hiking taxes on the family home.

"To avoid any accusations of a whitewash, the ethics adviser must examine all the material that Rayner's Housing Department sent the Treasury about any proposed property taxes.

"Only the Conservatives under my leadership are committed to ensuring we live within our means - that means cutting spending on welfare so we can reduce the burden of taxation."

Ms Rayner says she sold her 25 per cent stake in her Greater Manchester family home to a trust, set up for her disabled son to look after his interests, in January 2025.

She then bought a flat in Hove on which she later admitted she had underpaid stamp duty in error based on tax advice she says she received at the time.