Angela Rayner’s salary will be reduced by £67,505 (Image: Getty)

Angela Rayner’s salary has been majorly cut following her departure from government, raising questions over her ability to afford the mortgage payments of her new seaside pad. The Labour MP is also facing a possible hefty penalty for her tax affairs which may reach £50,000. Ms Rayner resigned after it was revealed she underpaid stamp duty on her £800,000 Hove property.

The former Deputy Prime Minister and Housing Secretary admitted underpaying £40,000 of stamp duty on the apartment bought earlier this year. Ms Rayner’s salary has now dropped by a whopping £67,505, going from £161,409 to £93,904. The Conservatives are also demanding that she is stripped of her £16,876 severance payment as, while in opposition, she had voted to stop ministers under investigation getting the lump sum.

David Lammy will take her place as Deputy Prime Minister (Image: Getty)

Tory party chairman Kevin Hollinrake said: “If she has any integrity then surely she must decline any severance payment.”

Ms Rayner sold her 25% stake in her Ashton-under-Lyne home in Great Manchester for £162,500, and used that to pay the £150,000 deposit on the Hove property. Documents show she has a £650,000 mortgage on the seaside flat, which may leave her with £4,000 monthly repayments, The Telegraph reports.

After tax, she now has a salary income of £5,400 to pay for the West Sussex flat – a major decrease from £8,100 as deputy prime minister.

In her resignation letter to Sir Keir, Ms Rayner said: “I deeply regret my decision to not seek additional specialist tax advice given both my position as Housing Secretary and my complex family arrangements. I take full responsibility for this error. I would like to take this opportunity to repeat that it was never my intention to do anything other than pay the right amount.”

Ethics watchdog Sir Laurie Magnus said Angela 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. He said in a report presented to Sir Keir: “Accordingly, it is with deep regret that I must advise you that in these circumstances, I consider the Code to have been breached.”

Sir Keir Starmer has told Angela Rayner “you will remain a major figure in our party” and will “continue to fight for the causes you care so passionately about” as she resigned.

Ms Rayner will continue as MP for Ashton-under-Lyne but has also resigned as Deputy Leader of the Labour Party, which is a position she held separately from her government positions.