United Kingdom foreign minister David Lammy has been appointed as the country’s new deputy prime minister, replacing Angela Rayner after she resigned amid a tax scandal.

Rayner’s resignation on Friday for breaching ministerial code after underpaying tax on her flat prompted a major cabinet reshuffle, with Lammy’s elevation to deputy prime minister among a raft of new appointments.

The departure of Rayner – a figure viewed by many as a ballast of the left and a potential successor to Prime Minister Keir Starmer – has created turmoil in the Labour Party, which now trails hard-right firebrand Nigel Farage’s Reform UK party in national polls.

In a letter to Starmer on Friday, Rayner conceded she “did not meet the highest standards” and would resign from her roles as housing minister and deputy leader of Labour.

“I deeply regret my decision to not seek additional specialist tax advice,” she said, having last week admitted to underpaying a surcharge on the flat. She said she took “full responsibility for this error”.

Starmer, whose government has endured a series of crises since taking power in July 2024, replied that he was “very sad” to lose her from government, but added: “You will remain a major figure in our party.”

“In losing her, Keir Starmer loses perhaps the closest link the Labour Party has to its working-class roots,” reported Al Jazeera’s Jonah Hull from Birmingham in the UK.

Starmer’s reshuffle also saw Yvette Cooper moved from the interior ministry to replace Lammy as foreign secretary, the prime minister’s office said. Shabana Mahmood, who was justice secretary, replaces Cooper as home secretary; while Lammy now takes on the role of justice secretary in addition to his position as deputy prime minister.

House of Commons leader Lucy Powell and Scotland secretary Ian Murray confirmed in statements on Friday that they were leaving government, following earlier reports they had been fired.

In a post on X, Powell said Starmer had told her he intended to replace her with a new Commons leader.

“This has not been an easy time for the government. People want to see change and improvements to their difficult lives,” Powell said.

‘Complexity’ in Rayner tax scandal

Rayner disclosed on Wednesday that she had underpaid so-called stamp duty on a seaside flat in southern England following days of reports suggesting that she had saved 40,000 pounds ($53,000) by removing her name from the deeds of another property.

After looking into the case, ethics chief Laurie Magnus said the rules “entailed a considerable degree of complexity” and recognised that Rayner had twice been advised that the lower rate of stamp duty was applicable.

That advice, however, was qualified by the admission that it did not constitute expert tax advice.

Rayner’s failure to seek further guidance meant she “cannot be considered to have met the highest possible standards of proper conduct”, said Magnus.

Rayner, who became a single mother at the age of 16 after growing up in poverty, worked her way up from the shop floor as a union representative, forging a lifelong involvement with the Labour Party.

Often tipped to become Labour leader one day, she has been a top target for political attacks by the Conservatives and right-wing media.