SIR KEIR STARMER reshuffled his Cabinet today after Angela Rayner resigned from government for breaking the ministerial code by failing to pay the proper stamp duty on a seaside home.

TUC general secretary Paul Nowak led tributes to her record in office after she quit as deputy PM, housing secretary and deputy Labour leader, while Socialist Campaign Group MP Richard Burgon called for a democratic contest to replace her in the latter role.

Sir Keir’s ethics adviser said she had failed to “heed the caution” contained within legal advice she received when buying an £800,000 property in Hove.

Mr Nowak said: “Politicians — like the rest of us — aren’t perfect. When they make mistakes... the best of them take responsibility.

“We are just weeks away from the biggest upgrade in workers’ rights in a generation becoming law.

“Angela Rayner can be rightly proud of her role in delivering that legislation which will improve life at work for millions.”

David Lammy has been appointed deputy prime minister and will take over as justice secretary from Shabana Mahmood, Downing Street sources said.

Yvette Cooper will replace him as foreign secretary while Ms Mahmood will take over her job leading the Home Office.

A spokesperson for campaign group Defend Our Juries said: “Yvette Cooper’s ban on Palestine Action has spectacularly backfired for her and the government. Now, she’s been removed as home secretary, the proscription of Palestine Action must go with her.”

Rachel Reeves will remain as Chancellor while Steve Reed will take over Angela Rayner’s former role as housing secretary, sources said.

Lucy Powell left as Commons leader while Ian Murray said that he was “hugely disappointed” as he was sacked as Scottish secretary. Pat McFadden will take over a new “super ministry” including the Department for Work and Pensions and the skills remit of the Department for Education, sources said.

Ms Rayner’s resignation has triggered the prospect of an internal Labour election battle to succeed her as deputy leader.

Mr Burgon said Ms Rayner could be proud of her work on delivering the Employment Rights Bill, and called for an election to the deputy leadership.

“A vital role of the deputy leader is to be a strong voice for ordinary Labour members. Right now members are desperate to see a bold shift in direction — one that can help prevent Nigel Farage from ending up in Downing Street. There must now be a proper election for deputy leader, and not a leadership stitch-up.”

Left Labour grouping Momentum co-chair Alex Charilaou added: “This is an opportunity for a well overdue debate about the change of direction the country and Labour so desperately need.

“We need a full contest, per the party rulebook, to debate vital points like a wealth tax, an end to the privatisation of our services and action to halt the genocide in Gaza.

“Labour members deserve a democratic Labour Party that treats them with respect. So there must now be a proper election for deputy leader, fully in line with the party’s rulebook.”