Today the former housing secretary stepped down from parliament following the news she underpaid stamp duty tax on her second home in Hove.
Angela Rayner announced her resignation just days after she referred herself to the prime minister’s ethics advisor following claims she failed to pay up to £40,000 worth of stamp duty tax on a flat she bought in the seaside town. The sum was so high because it was Rayner’s second property.
Unsurprisingly the news has caused quite a stir, especially for Keir Starmer. When the accusations first surfaced, the prime minister stood by his deputy and said he was ‘very proud to sit alongside her’. However, now Rayner has resigned her post Starmer faces a major cabinet re-shuffle just two months before the autumn budget is due to be delivered.
In her resignation letter, which can be downloaded in full here, Rayner said she ‘deeply regrets’ her decision not to seek ‘additional specialist tax advice’ over her purchase of the flat. She also noted that being able to ‘serve as the highest level of government has been the honour’ of her life.
In response, Keir Starmer said Rayner will always remain a ‘major’ figure within the Labour party and that he will continue ‘to fight for the causes’ Rayner cared ‘so passionately about’.
Since the news broke early this afternoon, industry experts have been theorising what it means for Labour’s planning, infrastructure and housing targets – a priority that has been central to Labour’s policy since the snap election took place last summer.
A number of reactions from professionals can be found below.
Colin Brown, head of planning and development at Carter Jonas
‘I think the industry will want to know that the changes the government has made to the planning system will remain the focus for the incoming secretary of state, and that there will be no rowing back. There is no doubt that publication of the revised NPPF in December 2024 and the introduction of the Planning and Infrastructure Bill have been important moments, pointing to a clear change in direction to build the homes the country needs.
‘The resignation letter from the former secretary of state and the response from the prime minister indicate this is still central to the government’s thinking so reassurance can be derived from that. What we would still like to see is the use of more tools to support the demand side for new housing especially with affordability remaining challenging and we hope the new secretary of state will focus on that, together with continuing better resourcing for local planning authorities.
‘Finally, there is a need to ensure that infrastructure provision to support new housing is tackled earlier and at a more regional and national level to ensure that projects are not unnecessarily delayed.’
Lawrence Turner, director of Boyer
‘Angela Rayner’s planning reforms rightly acknowledged the scale of the housing crisis and the urgent need for bold, decisive action. Her resignation must not become an excuse for delay. The new secretary of state now bears the responsibility to continue to unlock delivery and work to win the support of local authorities to provide the homes and infrastructure communities desperately need.
‘For plan-making, continuity here is critical. Local authorities must receive clear assurance from government that the 30-month local plan timetable remains in place and better guidance on when and how to prepare their new plans. Without this, plan-making risks stalling at the precise moment when momentum is most needed.
‘Secondly, the new SoS must act swiftly to remove two major barriers to housing delivery: nutrient neutrality and water scarcity. While the Nature Restoration Fund announcements were a welcome start, they must be accelerated to provide certainty for developers and local authorities and to have any real impact.
‘Thirdly, planning departments need proper resourcing. Councils should be allowed to retain 100% of planning fees, enabling investment in staffing and the recruitment of new planners to speed up decision-making. In addition, greater urgency is needed behind the delivery of new towns and major growth areas. These strategic projects offer the scale of housing and infrastructure that piecemeal development cannot achieve, but they require more work to increase momentum through direct government support, infrastructure investment, and clear direction to unlock land quickly.
‘The new secretary of state will be judged not by words, but by outcomes. If they can build consensus across local authorities and drive real progress on housing delivery, there remains a genuine opportunity to ‘turbo-charge’ house building within this parliament.’
William Nichols, regional director of Lanpro
‘Angela Rayner’s resignation, after last night’s revelations, became inevitable. It is also regrettable: she had been at the forefront of some bold housing and planning policies.
‘The immediate question for the industry is who now carries the baton at the Ministry of Housing, Communities and Local Government. Matthew Pennycook would be a logical choice – he has shown a strong grasp of the issues and would offer continuity. But continuity is not always what’s needed. This moment could be an opportunity to rethink aspects of policy that have been less successful, particularly the emphasis on local government reorganisation.
‘Local government reorganisation may be necessary, but it has distracted attention from housing delivery. In many councils, members and officers facing upheaval have been reluctant to press ahead with local plans when the future geography of their areas is so uncertain A pause here might free ministers to concentrate on what really matters: the growth agenda or local government reorganisation.
‘Angela Rayner’s resignation also offers the opportunity to bring fresh thinking to the housing market, with a particular need for a government incentive scheme for new buyers, to boost demand and to introduce badly needed growth in the economy.’
Photo by Nick Kane via UnSplash
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