• Angela Rayner resigns as Deputy PM over property tax underpayment.
• Keir Starmer conducts a major cabinet reshuffle following Rayner's departure.
• David Lammy appointed as new Deputy PM; Shabana Mahmood becomes Interior Minister.
• Labour party faces challenges as polls show trailing behind Nigel Farage's Reform UK.
• Rayner's resignation marks the eighth notable ministerial departure from Starmer's team.

British Deputy Prime Minister Angela Rayner resigned on Friday after admitting to underpaying property tax on a new home, a move that presents a significant challenge to Prime Minister Keir Starmer. This resignation was triggered after an independent investigation found that Rayner failed to adhere to the ministerial code, resulting in her stepping down alongside her roles as housing minister and deputy leader of the Labour Party, effectively marking the most damaging departure for Starmer thus far, according to SCMP, Reuters, and India Times.

Starmer was "very sad" to lose Rayner from his government but acknowledged her decision was the right one. Following her resignation, he announced a cabinet reshuffle that elevated David Lammy to the deputy role while appointing Yvette Cooper as the new foreign minister, who was succeeded by justice secretary Shabana Mahmood. This reshuffle highlights Starmer's attempt to regain control after facing mounting political pressure, as reported by Reuters, Al Jazeera, and Dawn.

Rayner's resignation, which is the latest in a series of high-profile ministerial exits from Starmer's administration, follows her admission of failing to correctly pay £40,000 in property tax related to her seaside apartment in Hove. She had believed she could register the flat as her primary residence despite it being a second home. After facing intense scrutiny and media attention, Rayner decided to act responsibly regarding her tax obligations, leading her to seek advice and accept her mistake, as stated by Reuters, Dawn, and TRT Global.

The independent adviser, Laurie Magnus, highlighted that Rayner failed to heed legal advice warning her about her tax liabilities, which constitutes a breach of conduct described in the ministerial code. This incident adds to the Labour Party's mounting challenges as it struggles to gain ground in the polls against the populist Reform UK party led by Nigel Farage, who recently declared the Labour government to be in a "deep crisis," as reported by The Jakarta Post and Reuters.