Angela Rayner’s £17,000 severance pay after tax row ‘outrageous,’ Tories say

Angela Rayner’s receipt of a ministerial severance payment of nearly £17,000 after quitting Government over her tax affairs has been branded “outrageous” by the Conservatives.

She resigned as deputy prime minister, housing secretary and deputy Labour leader last month after an independent ethics probe found she had breached the ministerial code over her underpayment of stamp duty on a seaside flat.

Ms Rayner had referred herself to the standards watchdog for investigation after she admitted she had paid as much as £40,000 less surcharge than she should have done on the purchase in May.

In September, she received the £16,876 severance pay Cabinet ministers are entitled to when leaving office. It is equivalent to a quarter of their annual ministerial salary.

It was before new Labour rules came into effect this week under which members of Government found to have committed a “serious breach” of the ministerial code would be expected to forgo or repay their “golden goodbye”.

A spokesperson for the Ashton-under-Lyne MP said: “There is a world of difference between making an honest mistake and a severe breach of the ministerial code, and as the independent ethics adviser’s investigation concluded, Angela acted with integrity and an exemplary commitment to public service.”

It was suggested the new Labour rules would not have applied to her automatic eligibility for the severance pay because her ministerial code breach was not deemed serious.

But the Tories claimed rule-breaking was being rewarded.

Shadow housing secretary Sir James Cleverly said: “It’s outrageous Angela Rayner has been rewarded for dodging tax. Ordinary people’s tax money has been funneled straight into her pocket.

“We asked the Government about this in Parliament and they refused to answer the question. And now we know why: she’s getting a windfall that covers nearly half the tax bill she tried to avoid.

“Rayner has long campaigned for transparency on tax affairs. Clearly, that doesn’t apply to her own cash. As always with Labour, it’s one rule for them, and another for everyone else. The PM should find a backbone and ensure wrongdoing is not rewarded.”

Following her departure from the Cabinet, Ms Rayner faced Opposition pressure to reject the severance payment after she previously voted against allowing ministers under investigation to receive such payments.

In February last year, she voted in favour of a motion put forward by Labour, then in opposition, that would have deprived departing ministers of a severance payout until they were cleared of any allegations.