Angela Rayner is still yet to pay the £40,000 stamp duty surcharge she owes on a second home, even as she is reported to be quietly preparing a leadership challenge to Sir Keir Starmer.
Recall, Rayner resigned as deputy prime minister and housing secretary in September after report revealed she had underpaid stamp duty on an £800,000 flat in Hove, East Sussex.
She had retained an interest in her home in Greater Manchester, meaning the Hove property should have been classed as a second home and liable for £70,000 in tax. Instead, she paid just £30,000.
Although Rayner has said she is cooperating fully with HM Revenue & Customs, but she has yet to make any payment while HMRC’s investigation continues.
Reports says she is still awaiting a final bill as HMRC declined to comment on individual taxpayers.
Following the disclosures, Rayner admitted she had made a mistake, reversing earlier claims that she had paid all tax due.
Meanwhile, reports over the weekend suggested Rayner has been on manoeuvres, offering colleagues positions in a potential future cabinet.
The speculation comes amid rising concerns within Labour about Starmer’s leadership and the party’s direction ahead of a difficult Budget on Nov 26, which must address a significant public finances shortfall estimated at £20bn or more.
The situation follows an internal briefing war in which allies of the Prime Minister insinuated that Wes Streeting, the Health Secretary, was preparing his own leadership bid.
Streeting criticised the leaks as indicative of a “toxic culture” in Downing Street, prompting an apology from Sir Keir.
Streeting received a standing ovation at Labour’s annual conference after calling for Rayner’s return to the front bench, remarking that Labour’s care-worker pay deal would not have happened without her.
Also, Clive Lewis became the first Labour MP to openly call for Starmer’s resignation over the weekend.
Other MPs say WhatsApp groups have become dominated by conversations about a possible change in leadership.
One Labour MP said: “Barely anything I’ve seen on any of the groups I’m on has said we’ve got to save Starmer.”
Potential successors being discussed include Rayner, Streeting, Home Secretary Shabana Mahmood, Energy Secretary Ed Miliband and former transport secretary Louise Haigh.
Mahmood condemned the recent briefing war as “horribly embarrassing,” calling on ministers to “draw a line under it” and concentrate on governing rather than tittle-tattle and anonymous briefings.
Labour peer Lord Glasman said he is backing Mahmood and argued the government must focus on core issues such as borders and security: “There needs to be a real reorientation of direction.”
Starmer Allies Still Confident
Some Labour backbenchers remain supportive of Starmer, insisting he could still replicate Margaret Thatcher’s trajectory, taking brutal early decisions that later yield electoral rewards.
One MP noted: “If we’re doing the right thing in policy terms and you start to get progress on immigration and economic news, people should feel more positive towards the Government. It’s what Margaret Thatcher managed to do.”
The outcome of May’s local elections taking place across England, Scotland, Wales and for the London Assembly is widely viewed as the key moment that will determine whether Starmer’s leadership can survive.
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