The Angela Rayner case has been the biggest test yet for Labour’s new ethics system

Angela Rayner has long positioned herself as the Conservatives’ fiercest critic when it comes to ethics and standards. So her admission on Wednesday that she paid too little stamp duty on her Hove flat has attracted huge amounts of criticism. An investigation by the independent adviser on ministerial standards has concluded, and Rayner has resigned her posts of housing secretary, deputy prime minister and deputy leader of the Labour Party.

Labour had strengthened the independence of the ministerial standards adviser

In opposition Labour criticised successive Conservative governments for failing to uphold ethical standards and committed to strengthening the system for ethics when in government. Since the election, the prime minister has published a new ministerial code which gave the independent adviser on ministerial standards, Sir Laurie Magnus, the power to start his own investigations into potential breaches of the code, and to require government to publish his findings “in a timely manner”. The government has also launched a new Ethics and Integrity Commission, fulfilling a manifesto commitment first announced by Rayner herself at a speech at the Institute in 2023.

In the event, Sir Laurie did not need to launch his own investigation as Rayner referred herself to him once she had been advised that she had paid the wrong amount of stamp duty. He praised Rayner for her "full and open cooperation" in providing him with all the information he needed – covering what advice she received, what she did as a result and how she explained her actions publicly – so that he was able to come to a quick judgement and send his advice to the prime minister. 

A breach of the ministerial code does not demand a resignation

While Sir Laurie concluded that Rayner "cannot be considered to have reached the 'highest possible standards of proper conduct' as envisaged by the code", various recent iterations of the code have made clear that a minister who has been found to have broken it does not have to resign – the sanction depends on the severity of the breach. But Rayner, writing to Keir Starmer, accepted the findings, noted the impact on her family of the "ongoing pressure of the media", and has chosen to resign.

Starmer has shown he is serious about standards in government

Just a week into the new parliamentary session, the Rayner case has presented the biggest test yet for a government that entered office on a promise to ‘stamp out corruption in government, strengthen the rules and ensure they are enforced’. ⁴ Neame K, Labour conference 2023: Motions voted on by delegates on Tuesday, https://labourlist.org/2023/10/labour-conference-2023-motions-votes-tuesday/  

Starmer has shown he has high expectations of his ministers and has bid farewell to several who have committed fairly minor misdemeanours. He will have been balancing that against his desire to keep his deputy in office if at all possible, but Sir Laurie's ruling made that outcome impossible. 

The most important aspects of any system of ethical standards are the tone set from the top and the reality of the consequences of breaking those standards. Starmer's moves to strengthen the rules, roles and institutions that govern standards in public life were important, but his decision to act on the conclusions of Sir Laurie's investigation will ultimately prove to be more consequential. Had he failed to do so, the facts of Rayner's actions been a running sore for Labour for the rest of the parliament – and the prime minister would have undermined the foundations of the ethical government he has came to power promising to lead.