UK Prime Minister Keir Starmer announced a major cabinet reshuffle Friday evening following the resignation of Deputy Prime Minister Angela Rayner, who stepped down after admitting to breaching tax rules related to a property purchase. Rayner’s departure came after it was confirmed she had failed to pay stamp duty on a former council house in Hove, purchased under the UK’s right-to-buy scheme. The unpaid amount was estimated to be nearly £40,000.

Rayner acknowledged the violation and resigned after discussions with the PM Starmer and senior officials. She also relinquished her roles as Housing Secretary and Deputy Leader of the Labour Party. In response, Starmer restructured his cabinet, naming David Lammy as the new Deputy Prime Minister and Secretary of State for Justice. Lammy previously served as Foreign Secretary. Yvette Cooper, who held the Home Secretary post, was appointed Foreign Secretary to fill the position vacated by Lammy.
The reshuffle marks a notable realignment of the government’s top leadership less than 15 months into Starmer’s tenure. Shabana Mahmood, formerly Justice Secretary, was appointed as Home Secretary, assuming responsibilities over domestic security and immigration. Mahmood becomes the first Muslim woman to serve in one of the UK’s Great Offices of State. The government also confirmed a series of other appointments. Steve Reed was named Secretary of State for Housing, Communities and Local Government.
Keir Starmer confirms realignment of top posts
Emma Reynolds assumed the role of Secretary of State for Environment, Food and Rural Affairs. Peter Kyle was appointed Business and Trade Secretary, while Liz Kendall was assigned the Science, Innovation and Technology portfolio. Pat McFadden was named Secretary of State for Work and Pensions. Darren Jones was appointed Chancellor of the Duchy of Lancaster and will also serve as Chief Secretary to the Prime Minister. Douglas Alexander, a former cabinet minister under Gordon Brown, returned to frontline politics as Secretary of State for Scotland.
The reshuffle follows growing scrutiny over Rayner’s financial disclosures, which became a focus of media and parliamentary attention over recent weeks. HM Revenue and Customs had confirmed an investigation was initiated into the property transaction after questions were raised regarding the accuracy of filings and the application of tax exemptions. Rayner, who played a central role in Labour’s 2024 general election campaign, had served as Deputy Leader since 2020.
UK government transitions into new leadership phase
Her resignation required immediate action from the PM Starmer to maintain continuity in government functions and leadership roles. Officials confirmed all new appointments were made within hours of her announcement. PM Starmer’s Office said the changes were aimed at ensuring the continued delivery of the government’s legislative agenda, with Parliament expected to reconvene next week after the summer recess. No changes were announced to the Chancellor of the Exchequer, Defence Secretary, or Health Secretary roles, which remain held by Rachel Reeves, John Healey and Wes Streeting respectively.
Friday’s reshuffle is the most extensive since the Labour Party entered government in July 2024, following a landslide general election victory. The updated cabinet line-up is expected to meet for the first time early next week ahead of the autumn policy sessions. With the appointments now finalized, the government’s senior leadership team includes several experienced Labour figures in key domestic and international portfolios. The PM Starmer’s spokesperson confirmed that formal notifications have been submitted to Buckingham Palace and that all changes are effective immediately. – By EuroWire News Desk.