Rayner cleared by HMRC, opens path for Labour leadership contest

Angela Rayner has been cleared by HM Revenue and Customs of any deliberate wrongdoing or carelessness regarding her tax affairs, a resolution that removes a significant obstacle to her potential return to frontline politics. The former deputy prime minister has settled £40,000 in unpaid stamp duty on a property in Hove, having initially paid the lower rate, but was not required to pay any penalties. HMRC confirmed that there was no tax avoidance involved in the matter.

The investigation had hung over the senior Labour MP since she resigned from the cabinet last September. In an interview, Rayner stated that the inquiry had "clipped my wings" and left her "bruised," particularly due to the intrusion into her disabled son’s personal life and the public perception that she was not on the side of ordinary people. She expressed relief that the insinuations of tax avoidance or recklessness were unfounded, noting that she had sought advice from leading tax lawyers who reached different conclusions regarding the complexity of the law.

With the Labour Party facing internal turmoil following recent election results, Rayner indicated she may contest a leadership challenge if one is triggered by Health Secretary Wes Streeting. Streeting is preparing to launch a challenge on Thursday if he can secure sufficient support from MPs. Rayner ruled out launching a coup herself but suggested she could endorse a soft left rival if it helped pull the party together, emphasising the need to avoid factionalism and egos.

Rayner declined to say whether Prime Minister Keir Starmer should step aside, stating that he must "reflect on" the situation. She noted that the pace of change had not been enough for voters to see and that mistakes had blown the party off course. She acknowledged that many MPs, including herself, were "heartbroken" by the election results but stressed that any challenge must be justified and that the party needs to move through this period as quickly as possible.

The former deputy prime minister also addressed the issue of Andy Burnham, who is currently unable to run for leadership from outside parliament. Rayner argued that if someone wants to help deliver the future the party can provide, they should not be blocked from re-entering parliament. She maintained that the party cannot afford to be factional and that she is putting all her energy into fighting for those who are struggling, regardless of the specific role she may play in the upcoming contest.