Rayner Clears Tax Probe, Streeting Resigns, Burnham Eyes MP Seat Amid Labour Turmoil

Prime Minister Sir Keir Starmer faced mounting pressure Wednesday as he watched the King deliver the government's agenda in the House of Lords. His three main Labour rivals—Andy Burnham, Wes Streeting and Angela Rayner—laid groundwork for their next steps.

Burnham spent the day urging MP Josh Simons, a former Starmer ally, to give up his Makerfield seat. Streeting met advisers in Parliament to weigh quitting his long-sought health secretary post. Rayner, meanwhile, pre-recorded a TV interview in a London hotel about settling her tax issues with HMRC.

The next day brought 12 hours of drama that undercut Starmer. Rayner's tax lawyer Graham Aaronson received a key HMRC email Tuesday afternoon. Her team felt relief and vindication. "The key point was she'd been cleared of either tax dodging or being careless," an ally said. Rayner did settle £40,000 in unpaid stamp duty.

The timing suited her. MPs questioned Starmer's future, and a leadership fight loomed. Rayner, on good terms with the King, held off to avoid upstaging his speech or legislation she had shaped as a minister.

Her team chose interviews with the Guardian's Pippa Crerar and ITV's Paul Brand, released at 6 a.m. Thursday. She met Crerar after the King's departure to Buckingham Palace, then Brand nearby. "It was timed to make sure we got it out, and it had a fair wave of attention before other dramas kicked off," an ally said. Rayner did not alert Starmer.

Westminster devoured Rayner's interviews as Streeting pondered his path. "He didn't begin the week planning to resign," a colleague said. But doubts grew. In a Wednesday meeting, Streeting told Starmer he had lost confidence in his leadership.

Critics called Streeting a "bottler" for lacking enough MP backing to challenge. Allies disagreed. "I've seen the spreadsheet," one said. Another noted Streeting had the numbers but saw a need for a broad field, including Burnham.

Streeting's team knew a weak showing would hurt future support. He decided Thursday morning despite pleas from cabinet ministers and Number 10 staff. A friend said he took it seriously but felt conviction. Streeting drafted his resignation in his Palace of Westminster office, emailed it to Number 10, then posted it on X at 12:58 BST.

Starmer was en route to meet apprentices in southwest London; the visit was soon canceled.

Simons, 32, Makerfield MP and father of three, weighed Burnham's pitch with his wife. Their call hinged on Burnham's prime ministerial potential, not the seat's winnability. "Josh has been radicalised by being a local MP... he saw the implosion in Westminster as a chance for Andy to come home," a friend said. Burnham lives locally, with kids in area schools.

Simons resigned as a minister in March over his past role at Labour Together think tank. He now campaigns for a Labour by-election win in Makerfield. "This is the sort of moment which can change Labour's story," a source close to Simons said. "Given the stakes Josh was not willing to say no."

Thursday evening, Streeting and Burnham spoke warmly by phone. Streeting pledged to campaign for Burnham in Makerfield.

The day saw three big moves from senior Labour figures in 12 hours. Rayner, Streeting and Burnham kicked off what looks like a leadership contest, despite no vacancy, no declared candidates and Starmer's vow to fight. Colleagues say his exit is now a matter of when, not if.