UK ex-deputy PM says 'cleared' over tax affairs

Angela Rayner, widely seen as one of the potential challengers to Prime Minister Keir Starmer, said on Thursday tax authorities had "cleared" her of deliberate wrongdoing.

The announcement could pave the way for her to stand in any leadership contest as Starmer battles to save his job after disastrous local and regional polls last week.

Four junior ministers have resigned and more than 80 MPs have urged him to quit, but no one has so far broken ranks to formally challenge him.

According to reports, however, Health Minister Wes Streeting, 43, is preparing to quit government on Thursday to run for the top job.

Streeting is popular on the right of Labour, but is disliked by MPs on the left who would prefer Rayner or Greater Manchester Mayor Andy Burnham as leader.

Burnham would have to secure a seat in the Westminster parliament before he could take part in any leadership challenge.

Rayner, who was forced to resign in September for underpaying a property tax, said she was relieved that the UK tax authority HMRC had exonerated her of "the accusation that I deliberately sought to avoid tax".

"I welcome HMRC's conclusion, which has cleared me of any wrongdoing," she said in a statement.

"I set out to pay the correct amount of tax. I took reasonable care and acted in good faith, based on the expert advice I received, and HMRC has accepted this," she added.

Rayner, 46, a figurehead among Labour's left-wing base, quit as deputy PM and housing, communities and local government minister after an investigation found she had breached the ministerial code over the purchase of a flat in southern England.

Labour prime minister Starmer, who came to power in a landslide election victory less than two years ago, has so far seen off the immediate threat to his job after the electoral drubbing last week.