Angela Rayner has said she has been cleared in an investigation into whether she deliberately dodged tax, paving the way for a potential leadership bid amid uncertainty over the Primer Minister’s future.
The former housing secretary and deputy PM told the Guardian that the probe into her underpayment of stamp duty on her new flat in Hove, which led to her departure from Government, had “clipped her wings”.
The MP for Ashton-under-Lyne did not rule out running in any leadership race but said she would not “trigger” a contest.
She said: “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.”
It comes as Health Secretary Wes Streeting was reportedly threatening to resign to launch a challenge to Sir Keir Starmer.
In an interview with ITV, Ms Rayner denied she had done a deal with other potential leadership contender Greater Manchester Mayor Andy Burnham, whose path back to Westminster would be complicated by needing to fight and win a by-election.
She added: “I am not doing deals.”
Ms Rayner said she wanted the party to “pull together” after days of turmoil but added she did not want to talk about “hypotheticals” when asked whether she would run in a future contest.
The Health Secretary is believed to have told allies he is preparing to resign on Thursday and announce a bid for the top job after Labour descended into open division at the start of the week.
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.
Sir Keir himself is expected to fight any leadership contest and spent yesterday 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”.
While more than 90 MPs have so far publicly called for the PM’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.
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.”
