Furious Conservative leader Kemi Badenoch demanded that Angela Rayner face the sack after she admitted underpaying stamp duty on a third home - and told Sir Keir Starmer: "If he had a backbone he would sack her". But the Prime Minister insisted he was "very proud to sit alongside" Ms Rayner, saying she was buuilding homes and had risen from "a working class background".

The PMQs clash came after Ms Rayner admitted she did not pay enough stamp duty on her second home and has considered resigning. The Deputy Prime Minister said she has been “in shock” and “devastated” over the fallout from her property arrangements and that she has referred herself to the independent adviser on ministerial standards.

Ms Rayner said she had received inaccurate tax advice and had spoken to her family about quitting. The Housing Secretary has been under intense pressure over her tax affairs after media reports about her purchase of a seaside flat in Hove. She was reported to have saved £40,000 in stamp duty on the flat because she removed her name from the deeds of a family property in her Ashton-under-Lyne constituency, meaning the Hove property is the only property she owns.

But Sir Keir defended his Cabinet colleague during PMQs. Instead, he attempted to use the affair to criticise the Conservatives, saying the Tories "spent years and years" avoiding accountability.

Mrs Badenoch pointed out that the Prime Minister had previously said tax evasion was a serious crime, and accused Labour of having one rule for opposition MPs and another rule for themselves.

She also attacked Labour's handling of the economy, saying: "It's a terrible record. He cannot say why borrowing is higher under him."

Criticising Chancellor Rachel Reeves, Ms Badenoch said: "She maxed out the country's credit card. Former memberts of the monetary policy committee are warning, and I quote, that we are heading for an economic crash."

Sir Keir said Mrs Badenoch "talks the country down at every opportunity".

Ms Rayner took her seat on the front bench for Prime Minister’s Questions moments after admitting she underpaid stamp duty on a property she bought and had referred herself to the independent ethics adviser.

The Deputy Prime Minister received a hug from Commons Leader Lucy Powell before taking her seat next to Prime Minister Sir Keir Starmer.