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Angela Rayner in talks with HMRC amid leadership speculation following Labour’s election losses

May 10, 2026
2 mins read
Angela Rayner in talks with HMRC amid leadership speculation following Labour's election losses

Angela Rayner faces barriers to leadership challenge amid tax inquiry

Angela Rayner’s team has been in contact with HMRC multiple times in the lead-up to local elections, as she considers a leadership challenge against Sir Keir Starmer following significant losses for the Labour Party, reports BritPanorama.

The Labour MP is dealing with a HMRC investigation concerning £40,000 in unpaid stamp duty, which poses a substantial obstacle to her ambitions. Despite this setback, her team has been actively engaging with HMRC as she prepares for any potential move.

A source indicated that there has been “fairly constant dialogue” between Rayner’s team and HMRC in recent weeks. The Labour deputy leader has asserted her commitment to cooperate fully with the inquiry.

This situation unfolds as Sir Keir Starmer seeks to maintain his leadership amidst substantial electoral setbacks, with the latest local election results showing Labour lost 1,492 councillors, while Reform UK gained 1,451. In contrast, the Tories, led by Kemi Badenoch, lost 563 seats, whereas the Green Party, under Zack Polanski, secured a gain of 437.

Since Labour’s defeat in Tameside, Rayner has maintained a low profile. Speculation surrounds fellow leadership contender Andy Burnham, the Greater Manchester Mayor, who has also refrained from overtly challenging Starmer. Conversations are intensifying regarding potential interventions to unify the party.

Rayner’s boyfriend, former Labour MP Sam Tarry, discussed the current political climate in his podcast, suggesting the party is in a “Mexican standoff” regarding leadership. He urged that decisive action could emerge soon as political dynamics shift.

Burnham has previously tried to re-enter Westminster but faced opposition from Labour’s ruling body. His supporters remain optimistic about his prospects of winning a by-election to facilitate a leadership challenge against Starmer, while some Labour MPs desire a clear timeline for Starmer’s departure, giving Burnham a chance to secure a seat.

Concerns among Labour MPs are growing about the implications of Burnham leaving his mayoral position. Some argue that his resignation could jeopardize key local government roles and highlight the party’s vulnerabilities.

Meanwhile, Burnham’s comments at a charity football match appeared to mock Starmer’s leadership tenure. He noted the need to regain attention, indicating his ongoing aspirations for higher political office.

While Burnham is viewed positively by many within the party, Deputy Labour leader Lucy Powell remarked that she does not support a leadership challenge. In contrast, backbencher Connor Naismith voiced strong support for Burnham, asserting his wide appeal among the electorate.

As discussions ensue about the future leadership of Labour, Wes Streeting, another potential candidate, has pledged his support to Starmer, though speculation regarding his own political career remains prevalent.

Streeting expressed his commitment to remain in his seat in Ilford North, asserting his dedication to the local community despite external pressures surrounding upcoming elections.

The implications of these local election results could significantly reshape Labour’s leadership dynamics as the party navigates a complex political landscape.

Political manoeuvring within the Labour Party suggests a period of introspection and potential restructuring, underlining the challenges of maintaining unity and direction amid electoral pressures.

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