Angela Rayner says Starmer should consider his position after HMRC clears her

Angela Rayner has been cleared by HM Revenue and Customs of deliberate wrongdoing or carelessness over her tax affairs, removing a significant barrier to any future leadership ambitions. The former deputy prime minister settled approximately £40,000 in unpaid stamp duty related to a property purchase in 2025, with HMRC imposing no penalty and confirming it was satisfied there had been no tax avoidance. The investigation had previously led to Rayner’s resignation from the government in September 2025, a development she described as having “clipped her wings”.

Rayner’s position on Starmer and a potential contest

In an interview, Rayner said she would not herself trigger or challenge Keir Starmer directly, but made clear she wanted to see change — “action, not just words”. Asked whether Starmer should step aside, she replied: “Keir will have to reflect on that.” She did not rule out standing in a contest should one occur, but also hinted she might back someone else. “I’ll play my part in doing everything we possibly can to deliver the change, because it’s not a personal ambition,” she said. Rayner emphasised her commitment to fighting for people who are “really struggling”, and later told ITV that she was “not doing deals or anything like that” with Andy Burnham over a possible joint challenge.

Wes Streeting prepares for a leadership bid

Westminster is braced for the health secretary, Wes Streeting, to resign from the cabinet and launch a formal leadership challenge, possibly as early as today. Streeting, who is identified with the right of the Labour Party, has been canvassing support among MPs. However, there are serious doubts about whether he has secured the necessary 81 nominations from fellow Labour MPs — the threshold required to trigger a contest. One cabinet minister loyal to Starmer claimed Streeting was “currently only on about 30” names, adding that “all the effort now has to go into stopping him getting to 81 names”. A former Conservative Downing Street adviser warned that MPs can be unreliable in chaotic situations, saying: “If it was me I’d want 130 names to be sure of 81.”

Richard Burgon, secretary of the Socialist Campaign Group, accused Streeting of “deliberately flying in the face” of a joint statement from all of Labour’s affiliated trade unions calling for an orderly transition. “Dismissing our trade unions like this will not help us learn the lessons or help us stop Farage,” Burgon said. Labour’s trade union backers reportedly withdrew their support for Starmer on the morning of 14 May 2026.

How a Labour leadership challenge works

The procedure for triggering a leadership contest under Labour Party rules is multi-layered and often misunderstood. To force a vote, a challenger must first secure nominations from at least 20% of the Parliamentary Labour Party — currently 81 MPs out of a total of 404. The incumbent leader is automatically placed on the ballot. Beyond the parliamentary threshold, a candidate must also be nominated by either 5% of Constituency Labour Parties (CLPs) or at least three affiliated organisations (two of which must be trade unions), with the combined membership of those affiliates representing at least 5% of affiliated membership.

Once a challenger qualifies, the voting system uses preferential ballots. Eligible party members and affiliated supporters rank candidates in order of preference. The winner is the first candidate to secure more than 50% of the vote, with votes from eliminated candidates redistributed as necessary. Trade unions play a significant role, providing funding and campaign infrastructure.

There has been confusion about whether MPs who nominate a challenger can later switch to another candidate. The Labour MP Luke Akehurst, a member of the party’s national executive committee, clarified that an MP may withdraw their nomination for one candidate only if that candidate withdraws from the race. However, it is permissible for an MP to nominate one candidate and then vote for another in the ballot — though at the voting stage an MP’s ballot carries no more weight than that of any other party member, meaning the key power lies in getting a candidate onto the ballot in the first place.

Douglas Alexander, the Scottish secretary, stressed that the process “simply hasn’t been triggered this morning” despite the headlines, and noted “twists and turns in this drama” in recent days. James Murray, the chief secretary to the Treasury, urged colleagues to “take a deep breath” and step back from supporting a contest. He said he hoped Streeting would “be the health secretary by the end of the day”.

Soft-left options and potential candidates

If Streeting does proceed, the soft-left wing of the party is scrambling to find a candidate to oppose him. Andy Burnham, the mayor of Greater Manchester and a soft-left figure, is seen as a potential contender — but he is not currently an MP. To stand, he would need to secure a parliamentary seat, likely through a by-election. His allies have warned against a “coronation” for Streeting and are seeking assurances that the party’s National Executive Committee will allow Burnham to stand; the NEC has previously blocked him from entering a by-election. Burnham cancelled his regular weekly appearance on Radio Manchester, saying he needed to prioritise “discussions arising from last week’s local elections”.

Angela Rayner, who is also on the soft-left, has not ruled out standing but has hinted she might prefer to back someone else. Ed Miliband, the energy secretary, has been mentioned as a possible soft-left candidate, but sources close to him have denied he is preparing to run. A former special forces colonel and defence minister, Al Carns, has been named as a dark horse candidate.

Economic context: growth figures and warnings

The UK economy unexpectedly grew by 0.3% in March 2026 — the first full month of the Iran war — according to official figures from the Office for National Statistics. This was better than economists’ forecasts, which had predicted a contraction. The economy expanded by 0.6% in the first quarter of 2026 overall. Rachel Reeves, the chancellor, said the numbers showed the government had “the right economic plan” and that the economy was in a stronger position to deal with the costs of the conflict. She warned that a leadership battle would put economic stability at risk, adding: “Labour MPs have got an important decision to make today.”

Despite the positive March figure, economists caution that the fallout from the Iran war — including a sharp rise in oil and gas prices — could threaten future growth, pushing up inflation and potentially leading to higher interest rates. The Bank of England has already signalled that rates may need to rise. Tracy Brabin, the mayor of West Yorkshire, said she had a “frank conversation” with Starmer about the need to “escalate the pace of change”, but declined to say whether she wanted him to remain as leader, stating only that she had “no horse in this race”.