Former United Kingdom Deputy Prime Minister Angela Rayner said she had been cleared by tax authorities of deliberate wrongdoing in her tax affairs, removing a key obstacle to any potential Labour leadership bid as Prime Minister Keir Starmer faces mounting pressure within his party.
Rayner confirmed on Thursday that HM Revenue and Customs had concluded its investigation after she settled £40,000 in unpaid stamp duty linked to an £800,000 flat in Hove.
The Labour MP for Ashton-under-Lyne resigned as deputy prime minister and housing secretary in September 2025 after admitting she had underpaid the tax.
In a statement on X, Rayner said: “I have been exonerated by HMRC of the accusation that I deliberately sought to avoid tax.”
She added: “I have always sought to act with integrity, and I believe politicians should be held to high standards – that is why I resigned from the government and cooperated fully with HMRC.”
The development comes as Starmer struggles to contain a growing rebellion inside the Labour Party following heavy losses in local and regional elections last week.
Four junior ministers have resigned, while more than 80 Labour MPs have publicly urged the prime minister to step down.
Starmer has vowed to remain in office, warning that a leadership contest would push the government into “chaos”.
Under Labour Party rules, any challenger would need the backing of 81 Labour MPs in the House of Commons to trigger a formal contest.
Reports in UK media and comments from allies of Health Secretary Wes Streeting suggested he could move to challenge Starmer as early as Thursday.
Rayner told The Guardian she would “play my part” in any future leadership race but said she would not personally trigger a contest against Starmer.
Asked whether the prime minister should resign, she said: “Keir will have to reflect on that.”
Streeting, regarded as part of Labour’s centrist wing alongside Starmer, is seen as a possible contender if the leadership crisis deepens.
Rayner, meanwhile, remains popular with Labour’s left wing after advocating higher taxes on wealthy earners and stronger wage policies.
Greater Manchester Mayor Andy Burnham has also been discussed as a possible candidate, although he would need to return to Parliament before entering any leadership race.