Angela Rayner has announced that, she has been cleared of deliberate wrongdoing in a long-running investigation into her tax affairs, a development that removes a major obstacle to any future bid for the Labour leadership as uncertainty deepens over Sir Keir Starmer’s position.
The Former Deputy Prime Minister, who resigned from government after questions were raised about the underpayment of stamp duty on a property purchase, said she had been “exonerated” by HM Revenue and Customs and was relieved to move on from an issue that had overshadowed her political future for months.
According to Angela Rayner,“I set out to pay the correct amount of tax. I took reasonable care and acted in good faith, based on the expert advice I received, and HMRC has accepted this.”
“I have always sought to act with integrity, and I believe politicians should be held to high standards – that is why I resigned from government and cooperated fully with HMRC.
“I wanted to ensure that I paid every penny that I owed, and have done so. I am relieved that my family can now move on – and that I can get on with my job.”
Angela Rayner
The announcement comes at a particularly sensitive moment for Labour, with reports suggesting Health Secretary Wes Streeting is preparing to resign from government and launch a leadership challenge against the Prime Minister, Keir Starmer. The emergence of Rayner as a potential contender adds a new dimension to what is becoming an increasingly volatile contest for the party’s top job.
In an interview with a media outlet, Rayner did not rule out standing in a leadership election, though she stressed she would not be the one to initiate a challenge.
“I’ll play my part in doing everything we possibly can to deliver the change, because it’s not a personal ambition, I know the difference it makes.”
Angela Rayner
Rayner acknowledged that the investigation into her tax affairs had significantly affected her political ambitions, noting that it had “clipped her wings”.
The HMRC decision removes what many Labour insiders had seen as the biggest barrier to Rayner entering any future contest. Her allies say the matter was only recently resolved after a prolonged and emotionally taxing investigation.
Labour Leadership Contest Takes Shape as Rayner and Streeting Prepare for Showdown
Labour’s internal tensions have deepened as Angela Rayner’s return to the political frontline threatened to complicate Wes Streeting’s reported plans to challenge Sir Keir Starmer, setting the stage for a potentially transformative leadership contest.
One ally of the Deputy Prime Minister noted that the timing could not have been worse for Streeting, joking that the Health Secretary “will be choking on his cornflakes” after learning that Rayner was once again free to pursue the leadership.
Wes Streeting is widely regarded as one of the strongest potential challengers to Starmer. Allies of the Health Secretary indicated that he was considering resigning from the Cabinet and formally launching a leadership bid, a move that could trigger a contest with significant implications for the direction of the governing party.
Rayner, meanwhile, is seen as a leading figure on Labour’s soft left and is expected to attract support from MPs and grassroots members looking for an alternative to both Starmer and Streeting.
The Deputy Prime Minister has also suggested that Andy Burnham, the Mayor of Greater Manchester, should not be blocked from returning to Westminster if he decides to seek the leadership.
It remains unclear whether Rayner would stand against Burnham or instead opt for a senior role in any future administration.
As speculation over Starmer’s future intensified, Chancellor Rachel Reeves urged Labour MPs to weigh the broader economic consequences of a divisive leadership battle.
She noted that, “Labour MPs have got an important decision to make today,” adding “The numbers show that the economy is growing and that we shouldn’t put that at risk.”
Reeves indicated that strong first-quarter growth figures demonstrated that the government’s economic strategy was delivering results and announced plans to unveil additional measures next week to support families and businesses facing the fallout from the conflict in the Middle East.
Moreover, Chief Secretary to the Treasury James Murray has appealed for stability. Asked about Streeting’s future, he noted that, “He is the Health Secretary, and I hope he is the Health Secretary by the end of the day.”
With Rayner cleared to re-enter the contest, Streeting weighing his next move and Starmer facing mounting internal pressure, Labour appears to be entering one of the most consequential and uncertain periods of its time in government.
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