Angela Rayner’s leadership ambitions face a stormy path as whispers of an unresolved issue swirl, casting doubt over any challenge to Sir Keir Starmer.
Angela Rayner faces potential obstacles to mounting a leadership challenge against Sir Keir (Image: DM)
Angela Rayner faces potential obstacles to mounting a leadership challenge against Sir Keir Starmer due to an outstanding tax investigation, Labour MPs have warned.
Backbenchers stand prepared to support the former deputy prime minister as calls intensify for Starmer to resign over his management of the Lord Mandelson scandal, yet Labour MPs including Rayner allies believe she may struggle to launch a bid while an HMRC inquiry into her £40,000 unpaid stamp duty bill remains unresolved.
Labour anger escalates over Epstein connections
The concerns emerged following another day of party fury surrounding Sir Keir’s appointment of Lord Mandelson as US ambassador amid revelations about the peer’s Jeffrey Epstein ties, including evidence he transmitted sensitive government information to the paedophile during his tenure as Gordon Brown’s business secretary – allegations now subject to police investigation.
Labour ministers have cautioned Sir Keir that internal party anger has reached “existential” levels for his premiership, with MPs actively plotting against him and colleagues urging both Rayner and Wes Streeting to mount leadership challenges.
One Cabinet minister said: “The only way any of this could be resolved is if the Cabinet decided to move.”
Prime Minister apologises to victims
Sir Keir apologised to Epstein’s victims on Thursday, maintaining he was deceived about the “depth and darkness” of Lord Mandelson’s relationship with the paedophile financier and claiming he had “no reason” to suspect the peer was lying about the connection before the ambassadorial appointment.
A two-page pre-appointment report compiled for Sir Keir documented Lord Mandelson’s 2009 stay at Epstein’s New York townhouse during the financier’s imprisonment and referenced suggestions the pair “maintained a particularly close relationship.”
Marco Rubio, Donald Trump‘s secretary of state, reportedly conveyed concerns about the appointment to the British Government last year, while Morgan McSweeney, Sir Keir’s chief of staff, received two separate Cabinet Office warnings regarding the peer’s Epstein connections.
The scandal has triggered questions about the Prime Minister’s judgment in selecting Lord Mandelson.
Rayner rebellion forces document release
Rayner spearheaded a Commons backbench rebellion on Wednesday compelling Downing Street to surrender control over publishing Lord Mandelson appointment documents, yet any leadership challenge prospects risk complications from the unresolved stamp duty investigation.
HMRC launched an inquiry into her affairs last September following her forced resignation after the media revealed she failed to pay correct stamp duty, with nearly six months elapsed and no indication of the taxman’s conclusions despite frustration from some Rayner allies over the glacial pace.
The Telegraph reports she wishes the enquiry to be concluded quickly.
A Rayner spokesman stated: “Angela said she would cooperate fully with HMRC and continues to do so. A running commentary is not helpful.”
Labour ministers have cautioned Sir Keir that internal party anger has reached “existential” levels (Image: Getty)
Left-wing MP expresses reservation
One Labour MP from the party’s Left expressed uncertainty about supporting her leadership bid during the ongoing HMRC investigation.
They said: “I worry about the outstanding tax she apparently owes,” adding she would need to explain the circumstances to secure their backing.
Backbenchers indicated that while Rayner would likely triumph in any contest, standing before settling her tax bill presents difficulties, with sources suggesting she harbours concerns about public perception of pursuing leadership with the investigation unresolved.
One MP said: “She could win the members. However, I don’t see how she can be a candidate until she’s paid. A lot of the wider party would love her to stand.”
Financial penalties loom
Rayner must pay the £40,000 missed tax, though crucially HMRC will determine whether to impose additional penalties.
Rayner allies previously claimed she assembled a £1million war chest for any forthcoming leadership contest, with reports indicating she informed MPs she stands “ready” to launch a challenge.
Following Wednesday’s vote, Rayner reportedly told an MP suggesting Sir Keir should resign: “I will be ready,” according to the Daily Mail.
Kevin Hollinrake, the Tory chairman, said: “A Labour leadership contest could be around the corner and one of Starmer’s most likely successors as PM is still under investigation for tax avoidance even while angling for his job. The public deserve the full truth about their representatives, especially those on manoeuvres to lead the country. We must see the full conclusions of the HMRC investigation as soon as possible.”
Angela Rayner calls for scrutiny into appointment of Mandelson
Starmer addresses Epstein appointment
Speaking Thursday, Sir Keir apologised to Epstein’s victims for appointing Lord Mandelson US ambassador last February, stating: “It had been publicly known for some time that Mandelson knew Epstein. But none of us knew the depth and the darkness of that relationship. What has come to light has raised serious questions, information that was not known at the time of his appointment.”
Parliament’s Intelligence and Security Committee, overseeing Lord Mandelson appointment document release, demanded Thursday to examine unredacted files.
Downing Street issued a statement emphasising the importance of “transparency” without announcing a decision, though Number 10 is understood to be preparing approval.
A Cabinet minister advocated maximum disclosure: “I think he’s got to publish as much as he can as soon as possible, allow the ISC to do their job and try to focus on the things that need doing. He needs to be completely open about what he knew and when.”
The source described the Prime Minister’s mood: “He’s furious. I’ve never seen him like this before, just how angry he is.”
Lord Mandelson, now confronting criminal investigation over whether transmitting sensitive information to Epstein constituted misconduct in office, expects police interview within days.
