Rayner in peril after admitting she underpaid stamp duty on flat

Starmer gives backing to deputy PM as she refers herself to ethics adviser

- Pippa Crerar

Angela Rayner is battling for her political survival after she admitted underpaying stamp duty on her £800,000 seaside flat and referred herself to the ministerial ethics adviser following days of denials of wrongdoing.

The deputy prime minister confirmed her tax arrangements after coming under intense pressure to be more transparent about her properties, but has been left with her reputation damaged and future hanging in the balance.

Keir Starmer immediately threw his weight behind his housing secretary, but faced criticism after Downing Street refused to say when he had been told about her situation. Government sources suggested the ethics inquiry could be completed within days.

The controversy comes as the prime minister faces a turbulent autumn, with tax rises expected to be announced in the 26 November budget, which will be delivered against a difficult economic backdrop.

Rayner has faced charges of hypocrisy as tax rises could potentially include those on property. She has also previously called for wealth taxes to help ease Britain's strained public finances, including targeting people who used companies to avoid stamp duty.

After referring herself to the ethics adviser, Sir Laurie Magnus, Rayner said she had received inaccurate legal advice that led her to underpay stamp duty. She confirmed she would have to pay more as a result of incorrectly paying the lower rate on the flat in Hove, East Sussex. Experts say the extra bill could be up to £40,000.