British Prime Minister Keir Starmer has reshuffled his cabinet following Angela Rayner’s resignation as deputy prime minister, housing secretary, and deputy Labour Party leader over a tax-related breach of the ministerial code.

The move comes as Starmer seeks to stabilize his government amid political challenges.

David Lammy, previously foreign secretary, is now deputy prime minister and justice secretary. Yvette Cooper takes over as foreign secretary, while Shabana Mahmood, formerly justice secretary, becomes home secretary, joining Chancellor Rachel Reeves to make history with women holding all three great offices of state.

Steve Reed replaces Rayner as housing secretary, Peter Kyle becomes business secretary, and Pat McFadden is appointed Work and Pensions secretary. Lucy Powell and Ian Murray, former leader of the House of Commons and Scotland secretary respectively, have also left the government.

Rayner resigned after failing to seek proper tax advice on her £800,000 Hove flat, though she “acted with integrity,” according to the PM’s ethics adviser. Starmer praised her as a “trusted colleague,” while Murray called his role the “honour of my life,” citing major Scottish investments.

The reshuffle follows Starmer’s “phase two” reset, emphasizing delivery, but has drawn criticism from Liberal Democrat leader Ed Davey for sidestepping “real issues.”

The reshuffle aims to restore public trust and project stability, with high-profile appointments like Lammy and Mahmood reinforcing Starmer’s focus on delivery and law and order.

However, the loss of key figures like Rayner and Murray risks alienating parts of Labour’s base, particularly in Scotland, and could fuel internal tensions as a deputy leadership contest looms.

In the longer term, the reshuffle’s success will hinge on whether Starmer’s new team can reverse Labour’s polling deficit and deliver on promises amid rising public expectations and a volatile political landscape.