Deputy prime minister Angela Rayner resigned after admitting she had not paid the correct amount of stamp duty on a flat purchased in May. The resignation followed a report from the prime minister's ethics adviser stating she had breached the ministerial code.

David Lammy was appointed as the new deputy prime minister and also took on the role of foreign secretary. Shabana Mahmood was appointed home secretary, replacing Yvette Cooper who moved to the foreign office.

The reshuffle occurred within 24 hours of Rayner's resignation and was prompted by pressure over her tax affairs. The prime minister's team began finalising changes early on 6 September 2025, with new appointments confirmed by midday.