HMRC clears Rayner of tax wrongdoing as Labour leadership contest looms

Angela Rayner, the former deputy prime minister, has been cleared by HM Revenue and Customs (HMRC) of deliberate wrongdoing or carelessness concerning her tax affairs. The resolution follows the settlement of £40,000 in unpaid stamp duty on a property in Hove, where Rayner had initially paid the lower rate. HMRC confirmed that no penalties were required, effectively removing a significant administrative obstacle to her potential return to frontline politics.

Following the clearance, Rayner addressed the political fallout from recent election results, stating that Prime Minister Keir Starmer should “reflect on” stepping aside. She emphasised that the current pace of change has been insufficient for voters and insisted that the party requires “action, not just words.” While she declined to say whether she would directly challenge Starmer, she indicated she would play a part in any leadership contest to deliver necessary change, noting that the party cannot afford to be factional.

The political landscape is shifting as Health Secretary Wes Streeting is expected to announce his candidacy for the Labour leadership. Streeting, identified with the party’s right wing, would face a potential challenge from Rayner, who is aligned with the soft-left. Journalists in Westminster are braced for Streeting’s announcement, although certainty remains incomplete. The timing coincides with a period of introspection for the party, which saw many MPs, including Rayner, describe themselves as “heartbroken” by recent election outcomes.

Rayner also signalled potential support for Andy Burnham, suggesting he could replace Starmer if he can secure a parliamentary seat. Burnham is currently outside parliament and would need to return to the Commons via a byelection to be eligible for the leadership. He has cancelled his regular weekly appearance on Radio Manchester to prioritise discussions arising from last week’s local elections, a move interpreted as preparation for a potential return to parliament.

The potential contest highlights the ideological divide within the Labour Party, with Streeting representing the right and Rayner and Burnham associated with the soft-left. Rayner stated that her focus remains on fighting for those struggling, rather than personal ambition, but her comments suggest a significant push for internal reform. The situation remains fluid, with key announcements from Streeting and Burnham anticipated in the coming days.