Rayner ‘cleared by HMRC over tax affairs’ amid uncertainty over Starmer’s future

Angela Rayner has said she has been cleared of deliberate wrongdoing in an investigation over her tax affairs, paving the way for a potential leadership bid amid uncertainty over Keir Starmer’s future.

As Health Secretary Wes Streeting mulls whether to launch a challenge to the prime minister, Starmer’s former deputy did not rule out running in any race but said she would not “trigger” a contest.

Rayner, the MP for Ashton-under-Lyne, told the Guardian the investigation into her underpayment of stamp duty, which led to her departure from the UK government, had “clipped her wings”.

She said: “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.”

In an interview with ITV, the former deputy Labour leader denied she had done a deal with potential leadership contender Greater Manchester Mayor Andy Burnham, whose path back to Westminster would be complicated by needing to fight and win a by-election, adding: “I am not doing deals.”

She said she wanted the party to “pull together” after days of turmoil but added she did not want to talk about “hypotheticals” when asked whether she would run in a future contest.

The Health Secretary is believed to have told allies he is preparing to resign on Thursday and announce a bid for the top job after Labour descended into open division at the start of the week.

Efforts to lever Starmer out of Downing Street appeared to stall on Wednesday, with no further ministerial resignations or backbench calls for his resignation as Westminster turned its attention to the King’s Speech.

Labour’s trade union backers had pulled their support for Sir Keir that morning, while Mr Streeting’s team failed to deny claims he was poised to quit.

If he mounts a challenge, Mr Streeting will need the backing of 81 Labour MPs to begin a formal contest.

While some 87 MPs have so far publicly called for Starmer resignation, they are not united behind a single candidate to replace him.

Other figures regarded as potential challengers include Energy Secretary and former party leader Ed Miliband and armed forces minister Al Carns.

In an article for The New Statesman published on Thursday, former Royal Marines officer Carns said: “We do not need more slogans, strategies, press releases or commissions. We need action.”

Deputy Prime Minister David Lammy has questioned whether any of the Prime Minister’s rivals can muster the necessary support to launch a contest.

Starmer himself is expected to fight any leadership challenge, and spent Wednesday afternoon meeting ministers and Labour MPs as he sought to avert a coup.

On Thursday, he will seek to wrest back control of the political agenda with the introduction of legislation overhauling social housing and the “right to buy”.

Ahead of the introduction of the Social Housing Renewal Bill, intended to boost the supply of council homes, Sir Keir said his Government was “taking responsibility, rebuilding social housing, and delivering the change people voted for”.

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Labour turmoil continues as Streeting mulls leadership challenge

Meanwhile, the prospect of a return to Parliament for Greater Manchester Mayor Andy Burnham receded as more MPs declared they did not intend to give up their seats to allow him to contest a by-election.

Manchester MPs Afzal Khan and Jeff Smith had been rumoured in Westminster to be willing to make way for Mr Burnham.

But both men expressly denied to the Press Association that they were preparing to stand down.