Angela Rayner, former UK deputy prime minister and Labour soft-left figure, was cleared by HMRC of any deliberate wrongdoing or carelessness in her tax affairs, with no fines or penalties imposed on May 14, 2026 [1] [2]. Rayner said she was "exonerated of the accusation that I deliberately sought to avoid tax" [2]. She had resigned from office in 2025 amid the unresolved tax issue [2].
After the clearance, Rayner said Keir Starmer, Labour leader and UK prime minister, "will have to reflect on that" following poor local election results and growing calls for his resignation [1]. More than 90 Labour MPs have publicly called for Starmer to set a timetable for his departure after the party’s poor electoral showing [2].
Rayner indicated she would not launch an immediate leadership challenge herself but wants to see change within Labour. "I’ll play my part in doing everything we possibly can to deliver the change," she said. "It’s not a personal ambition... I want the people out there at the moment who are really struggling … to know that I’m putting all my energy into fighting for them" [1]. She signaled she may back other candidates for the leadership [1] [2].
Wes Streeting, Labour health secretary and party right-winger, is expected to announce his bid to challenge Starmer on May 14, 2026 [1] [2]. Andy Burnham, Greater Manchester mayor and fellow Labour soft-left politician, is seen as a possible candidate supported by Rayner but would need to win a Commons seat in a by-election first [1] [2]. Burnham cancelled a recent Radio Manchester appearance to prioritise talks following the local election setbacks [1].
Rayner’s exoneration marks a key development since her 2025 resignation due to the tax affair [2]. Labour’s internal contest for leadership looks set to unfold rapidly with multiple challengers emerging. Streeting’s formal announcement is due today.