LONDON — Keir Starmer was forced into a major overhaul of his governing team Friday after the resignation of a scandal-hit ally.

Starmer began reshuffling his Cabinet Friday afternoon, in a move promtped by the dramatic exit of Angela Rayner from his top team.

Rayner quit as deputy prime minister and housing secretary after an investigation by the government’s independent ethics adviser into her tax affairs.

Lucy Powell became the first minister to be sacked, with a key figure on Labour’s soft-left faction losing her post as the leader of the House of Commons.

Powell said in a statement confirming her exit that it had “been an honour to serve,” but she acknowledged it had not “been an easy time for the government.”

Starmer’s Labour swept to power on a landslide just last year, but is now consistently below the insurgent right-win Reform UK, led by Nigel Farage, in the polls.

Rayner, who also served as Britain’s housing secretary, was subject of an investigation by the government’s independent ethics adviser after admitting she failed to pay the correct amount of tax — known as stamp duty — on the purchase of a second property.

The rejig of Starmer’s top team comes just days after a backroom overhaul of advisers that was meant to mark a relaunch of the struggling administration.

Rayner, who has served as housing secretary and deputy PM since Labour entered government last year, was seen as one of the Cabinet’s better communicators and served as an important bridge between Starmer, his parliamentary party, and Labour’s trade union backers.

Her simultaneous exit as deputy Labour leader raises the prospect of a bitter contest to replace her at a time Starmer is focused on trying to turn the ship around.

This developing story is being updated.