The scandal involving unpaid taxes by Angela Rayner, the U.K. Deputy Prime Minister known as a 'dirt spoon politician,' is deepening the worries of Prime Minister Keir Starmer. This is particularly concerning as the Starmer government is already facing weakened support due to an economic downturn.
According to foreign media reports, including the Financial Times, on the 3rd (local time), Rayner, who also serves as Minister for dwellings, improperly paid taxes when purchasing an apartment in Hove, East Sussex, England, a resort area, in May of this year.
Initially denying the allegations, Rayner admitted that she paid less stamp duty when purchasing an apartment worth £800,000 (approximately 1.5 billion won). The stamp duty she omitted is estimated to be around £40,000 (approximately 75 million won). In the U.K., an additional stamp duty must be paid when purchasing a second dwelling that's not a high-end property or a primary residence.
Rayner purchased the new apartment in Hove after transferring her home in her constituency of Ashton-under-Lyne to a trust set up for her disabled son. She claims that she was advised to pay the standard stamp duty at the time of purchase but has since received legal advice indicating she should have paid additional stamp duty.
In the U.K., there has been an outpouring of criticism labeling Rayner as 'hypocritical.' Throughout, Rayner has argued for tax increases to bolster the U.K. government's finances, and the Labor Party, to which she belongs, raised the stamp duty rate from 3% to 5% last year.
The opposition also criticized her. Kemi Badenoch, the representative of the U.K. Conservative Party, said, 'If the Prime Minister had any guts, he should have fired Rayner by now,' adding, 'If she is in the position to help establish tax policies as Deputy Prime Minister and is deciding where people live and what their expenses are as Minister for dwellings, she should first resolve her own issues.'
In response, Prime Minister Starmer noted, 'The Deputy Prime Minister actively sought to disclose details, including requesting the court to lift the confidentiality order related to her son yesterday,' and expressed pride in her as someone who rose from the working class and works to uplift workers' rights.
Local media assessed that the political burden on Prime Minister Starmer has intensified. Last year, Starmer received approximately £50,000 (about 94 million won) worth of high-end clothing from a wealthy member of the Labor Party, which he was late to report, and it was revealed that he also received free football match and concert tickets, causing him embarrassment. Coupled with an economic recession, his approval ratings have significantly declined.
The New York Times (NYT) reported, 'The Rayner issue has become a new significant headache for Prime Minister Starmer, who is struggling to find political momentum amid economic recession and unstable economic policies,' adding, 'This has further fueled skepticism regarding the moral hazard of senior officials in the Labor Party government.'
Bloomberg reported, 'Rayner acknowledged that she paid less tax in the process of purchasing real estate and stated that she would refer this matter to the government's ethics oversight body,' while also noting, 'This presents another blow to the Labor Party government led by Starmer and could cast uncertainty on Rayner's political future, potentially having long-term repercussions for the party leadership.'