Angela Rayner’s exit leaves Starmer facing a jobs time bomb

Deputy Prime Minister Angela Rayner has stepped down after it emerged she fiddled her stamp duty bill to save £40,000 on her £800,000 seaside flat in Hove. Her resignation might secretly suit Keir Starmer, who never fully clicked with his fiery second-in-command.

Plenty of people will be glad to see the back of her. Rayner was the classic Marmite politician. You either backed her to the hilt or couldn’t stand her.

Among Labour’s grassroots, though, she was adored. In a cabinet full of polished professionals, she stood out as the only recognizably working-class voice. Her backstory was extraordinary too, going from single mum at 16 to one of the most powerful figures in Westminster, reported the Express.

She’s out of the picture for now, though it’s hard not to think she’ll pop back up at some stage. Whatever happens, her mark on politics lives on through the Employment Rights Bill.

This law would give workers protections from the first day of employment and clamp down on zero-hours contracts. For unions, it’s a dream. For Starmer, it could be a nightmare.

Rayner started out as a union rep, and her bill hands the movement more influence than they’ve had in years. Unions still bankroll Labour, and many see the legislation as long-overdue payback. But to critics, the bill looks like a ticking time bomb that could blow up an already fragile economy. Starmer and Chancellor Rachel Reeves know exactly what’s at stake.

The biggest concern is that giving full rights without a probation period will scare employers away from hiring. Why risk taking on someone untested who could vanish sick on day one, leaving the firm stuck with all the costs and none of the benefits? Bosses already grumble about Gen Z workers, often painted as entitled and too quick to call in sick over mental health.

Youth unemployment is climbing sharply, and this bill could freeze even more young people out of jobs. Ironically, it could also hurt those genuinely battling mental health issues, as companies may simply decide not to take the risk.

All this is landing just as artificial intelligence is eating away at entry-level jobs. The timing couldn’t be worse. Meanwhile, Starmer and Reeves have already been blamed for hammering business with a £25 billion rise in employers’ national insurance.

That hit is thought to have wiped out 174,000 jobs, with another 100,000 on the line by Christmas. Since the Budget, unemployment has crept up from 4.3% to 4.7% and is on track to hit 5%.

Against that backdrop, Rayner’s bill could be explosive. There’s already talk that with her gone, Starmer might try to water it down. But he’ll be in for a bruising battle with the unions, who have waited decades to claw back the powers Margaret Thatcher stripped from them. This could become a defining fight of his leadership, with Rayner the spark that set it off.