Angela Rayner, the Deputy Prime Minister and former Housing Secretary, has been criticised for not paying the full council tax surcharge on her Westminster flat, raising questions about compliance with the ministerial code. This issue is significant for landlords as it highlights the importance of understanding council tax liabilities, especially concerning second homes and official residences.

Background to the Council Tax Controversy

Westminster Council introduced a 100% surcharge on second homes from 1 April 2025, effectively doubling the council tax bill on properties classified as second residences. Angela Rayner’s flat in Admiralty House, a Grade I-listed building in Whitehall, fell under this category. However, the council only became aware that the flat was a second home in early May, more than a month after the surcharge took effect.

A retrospective one-off payment was made in late July 2025, but only after Conservative MPs continued to raise concerns. This delay in payment has led to accusations that Ms Rayner avoided paying the full council tax surcharge during this period.

Ministerial Code and Personal Responsibility

The controversy follows Ms Rayner’s resignation from government after admitting to underpaying stamp duty on her flat in Hove, an incident that was found to breach the ministerial code. The ministerial code states that ministers must ensure all personal tax liabilities, including council tax, are properly discharged and personally paid.

While the government is responsible for paying council tax on grace and favour properties, which are ministers’ second homes, the Conservative Party argues that Ms Rayner had a personal responsibility to ensure her council tax was paid in full and on time. This is a key point for landlords and agents managing properties that may be subject to additional surcharges or specific tax rules.

Political Reactions and Implications for Landlords

Kevin Hollinrake, Conservative Party chairman, criticised Ms Rayner, stating: “This new evidence confirms what we have long suspected: Angela Rayner failed to pay the council tax she was liable for, broke the ministerial code and led to ministers misleading Parliament in the process.” He further highlighted the contrast between Ms Rayner’s situation and the increased council tax bills faced by families under the Labour government.

For landlords, this case underscores the importance of adhering to council tax regulations and understanding the implications of second home surcharges. Properties classified as second homes can incur significant additional costs, which must be factored into rental pricing and financial planning.

Official Response and Next Steps

A source close to Ms Rayner told The Telegraph that the government is responsible for liaising with Westminster City Council and administering council tax on Admiralty House, and that Ms Rayner fulfilled her responsibilities as required. This highlights the complexities involved in managing council tax liabilities for official residences and second homes, an area landlords should monitor closely to ensure compliance.

What This Means for Landlords and Agents

This incident serves as a reminder for landlords and letting agents to stay informed about council tax rules, particularly the surcharges applied to second homes. Understanding local authority policies and ensuring timely payment of council tax can prevent disputes and financial penalties. Additionally, landlords should be aware of how grace and favour properties or official residences might be treated differently under council tax regulations.

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The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026, which will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. This initiative aims to provide landlords with reliable contacts in legal, trades, insurance, financial, mortgage, tenant screening, and other essential services. Service providers interested in joining can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.