Rayner paves way for Labour leadership bid

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 Sir Keir Starmer’s future.

As Health Secretary Wes Streeting mulls whether to quit and challenge the Prime Minister, Sir Keir’s former deputy indicated she could run in any race but insisted she would not “trigger” a contest.

Meanwhile, Chancellor Rachel Reeves warned colleagues not to put the economy “at risk” by “plunging the country into chaos” after figures showed gross domestic product grew in the first three months of the year.

Ms Rayner, the MP for Ashton-under-Lyne, also denied she had done a deal with Greater Manchester Mayor Andy Burnham, whose path back to Westminster would be complicated by needing to fight and win a by-election.

Asked whether she would enter a contest, she told the Guardian: “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.”

She said Sir Keir should “reflect on” whether to step aside following a bruising set of local election results that have intensified speculation about his future in No 10, with Labour openly divided over how best to move forward.

Ms Rayner said the Health Secretary, who is believed to have told allies he is preparing to resign on Thursday in a bid for the top job, would need to “justify his actions”.

“I do understand my colleagues and why they’re angry and upset,” she said. “I do understand why we’re having this conversation now, but we need to get through that as quickly as possible.”

Ms Rayner has settled £40,000 in unpaid stamp duty, but has not paid any penalty as a result of the HMRC investigation into her underpayment of the levy on a property purchase, the row which triggered her resignation from the Government and had overshadowed her prospects of a potential leadership run.

With Westminster waiting with bated breath for Mr Streeting to make a move, the Health Secretary commented in a written statement on NHS figures released on Thursday morning showing the waiting list for routine hospital treatment in England had fallen for the fifth month, to its lowest since summer 2022.

“Our plan for the NHS is working. This is the biggest cut in waiting lists in a single month in 17 years,” he said.

“Lots done, lots more to do.”

The Chancellor, who has avoided commenting publicly on the turmoil engulfing Labour, said the party’s MPs have an “important decision to make” in an intervention outside Downing Street on Thursday.

Addressing reporters gathered outside No 10 after figures showed the UK economy grew by 0.6% in the first three months of the year, Ms Reeves said: “Labour MPs have got an important decision to make today, but the numbers show that the economy is growing and that when we entered this (Middle East) conflict, our economy was growing strongly because of the decisions that I have made as Chancellor. We shouldn’t put that at risk.”

Asked what her message to Mr Streeting was, she told the BBC that “plunging the country into chaos at a time when there is conflict in the world, but also at a time when our plan to grow the economy is starting to bear fruit” would be a mistake.

Chief Secretary to the Treasury James Murray said he hoped Mr Streeting would still be Health Secretary “by the end of the day” and warned colleagues against going “into a chaotic process of uncertainty”.

But in a further sign of discontent with Sir Keir’s leadership, Labour Mayor of West Yorkshire Tracy Brabin stopped short of saying he should stay in No 10.

“I would expect to see change if he were to remain as Prime Minister,” she told the BBC’s Today programme, adding: “We can’t continue as we are.”

Efforts to lever Sir Keir 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 Sir Keir’s 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, who has reportedly confirmed to allies he would throw his hat into the ring.

In an article for The New Statesman published on Thursday, former Royal Marines officer Mr 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.

Sir Keir 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”.

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.

Mr Burnham, the potential contender favoured by the soft left of the party, pulled out of his regular Thursday morning BBC Radio Manchester phone-in slot, with his spokesman telling the broadcaster: “He has to prioritise discussions arising from last week’s local elections.”

Sir Keir will also come under added pressure at an event held by the FDA union, which represents civil servants, over his decision to effectively sack senior civil servants Sir Olly Robbins, former head of the Foreign Office, and Sir Chris Wormald, former cabinet secretary.

Sir Chris left Government as Sir Keir sought to reset his Downing street operation amid ongoing controversy over Lord Mandelson’s appointment as US ambassador, while Sir Olly was fired after not passing on that the peer had failed developed vetting for the role.

Speaking at the event on Thursday, FDA general secretary Dave Penman will warn: “A government in a hurry to deliver, urging civil servants to be risk takers, should understand that governing is a joint enterprise.

“Risks will only be taken if the risk is shared. Trust is required for good, effective, and agile government. But I’m afraid that trust is in short supply.”

He is expected to add: “It is the Prime Minister’s actions, not his words, that will leave an indelible mark on the most senior leaders in the civil service. Who now will feel they will not be thrown under the bus if it serves a narrow political objective?”