Angela Rayner has quit the Government following outrage over the stamp duty scandal.
The MP for Ashton-under-Lyne had been under fire about whether she broke ministerial standards rules over her tax affairs.
She will leave her roles as Deputy Prime Minister, Housing Secretary and Deputy Labour leader.
Reacting to the news, Conservative leader Kemi Badenoch said: "Angela Rayner is finally gone. But it’s only because of Keir Starmer’s weakness that she wasn’t sacked three days ago. Britain deserves better."
Angela Rayner has resigned as Deputy Prime Minister
|GETTY
Ms Rayner referred herself for an ethics investigation on Wednesday, admitting that she had not paid enough stamp duty on the purchase of the £800,000 flat.
She said she had initially been advised that she was not liable for the second property surcharge because she had sold her stake in her family home in Ashton-under-Lyne to a court-instructed trust established in 2020 to benefit her disabled son.
But she conceded she had made a "mistake" after fresh legal advice from a "leading tax counsel" later revealed that she was liable for the extra duty on her new Hove flat.
Sir Keir Starmer had offered his deputy his full support, saying he was "proud" to work alongside her - but she has now stood down.
LATEST DEVELOPMENTS
Angela Rayner admitted wrongdoing over her tax affairs on Wednesday | GB NEWS
Angela Rayner's resignation letter in full
|X
Ethics watchdog Sir Laurie Magnus said Ms Rayner had "acted with integrity and with a dedicated and exemplary commitment to public service" but concluded she breached the ministerial code over her tax affairs.
In her resignation letter, Ms Rayner has told the Prime Minister in a letter that "I deeply regret my decision to not seek additional specialist tax advice"
She added that she took "full responsibility for this error" as she announced her resignation from the role.
Sir Keir Starmer has told Ms Rayner "you will remain a major figure in our party” and will "continue to fight for the causes you care so passionately about."
Sir James Cleverly, shadow housing minister, said: "Angela Rayner’s position has been untenable for some time. She has been deeply hypocritical, demanding more tax from others while seeking to pay less herself.
"Starmer’s judgment is also in question. He accused people of sexism and classism in an attempt to intimidate us away from scrutiny of his deputy."
Shadow chancellor Sir Mel Stride added: "It took far too long to get to this point. Rayner tried to hang on to her job, and Labour did everything they could to protect her - even as serious questions mounted.
"It’s utterly extraordinary that while working families and businesses are being hammered by Labour's tax hikes, Angela Rayner failed to pay the right amount of stamp duty - by tens of thousands of pounds. No one is above the law. No government minister should be setting the rules when they fail to keep them themselves."