Rayner plots move against Starmer

Angela Rayner is laying the ground for a leadership challenge against Sir Keir Starmer.

The former deputy prime minister and housing secretary is already offering Cabinet roles to MPs in exchange for their support, The Telegraph has been told.

A source familiar with Ms Rayner’s moves said she was “on manoeuvres” and was “getting her ducks in a row” for a leadership bid, adding: “The unions will back her and help her.”

Ms Rayner has also joined Tribune, a pressure group of MPs on the soft Left of the Labour Party, led by the architects of the welfare rebellion.

Senior figures in the group say it currently has 70 members but is on course to reach 100, making it the biggest caucus of Labour backbenchers. It could be used as a leadership vehicle for a candidate in the future.

Ms Rayner was forced to resign from her Cabinet roles in September after The Telegraph revealed that she did not pay £40,000 of stamp duty owed on the purchase of a flat in Hove, East Sussex.

But her allies believe she is ready to make a political comeback, with those to the Left of the party favouring her as a leadership candidate over other contenders such as Wes Streeting, the Health Secretary.

An early leadership contest would favour candidates such as Ms Rayner and disadvantage those such as Andy Burnham, the Left-leaning Mayor of Greater Manchester, who is not an MP.

A source close to Ms Rayner dismissed the claims as “total rubbish” on Saturday night, insisting that she was “focused on representing her local community”.

Over the past week, Downing Street’s attempt to see off a perceived leadership threat backfired, while Rachel Reeves’ about-turn on raising income tax caused chaos in bond markets and exasperation among MPs.

On Friday night, Clive Lewis became the first Labour MP to break ranks and call for Sir Keir to step down, saying the current situation is “not tenable, frankly”.

Mr Lewis, the MP for Norwich South, told Channel 4 News: “I just don’t see how this can stagger on without any resolution on the horizon.”

He added that Labour grandees and the “men in grey suits” needed to step in and install Mr Burnham as the next prime minister.

Despite openly calling for the Prime Minister to go, Mr Lewis retained the party whip on Saturday night, more than 24 hours after he made the remarks.

One Labour MP said the past week had been a “complete shambles”, adding that: “After this last week, everyone is just completely fed up with it all.”

Another backbencher said: “The leadership of the party is in complete disarray. If they had three feet they’d have shot all three. They are frightened of their own shadow, they have spooked the markets and they have confused both the Labour Party and the electorate.

“There are a lot of Labour MPs worried about their seats and worried about the direction of the Government. So there is constant talk and constant chatter of dissatisfaction. I don’t know any part of the party that it is not coming from, including ministers, both junior and senior.”

A third Labour MP said: “The Government has found itself in a position where it has lost the confidence of a significant part of the parliamentary Labour Party. It is not surprising that senior politicians are thinking, ‘What do we do if there is a leadership election?’”

A Cabinet source said: “There is a lot of volatility at the moment – it could go one of many different directions. That is probably the worst place to be. Nobody appreciates a divided party that faffs around with its leadership. We need to get a grip. Next May is going to be a bit of a bloodbath – we need a bit of stoicism and a bit of unity.”

The Prime Minister’s credibility was damaged last week by a briefing waragainst alleged coup plotters.

Allies of Sir Keir accused the Health Secretary of plotting against the Prime Minister, as they tried to shore up his position by briefing that he would fight any attempt to oust him.

But Sir Keir was left on the back foot after Mr Streeting called Downing Street “toxic” and “juvenile”. The Prime Minister was then forced to launch an investigation into the leak and apologise to the Health Secretary.

Meanwhile, Ms Reeves’ flip-flopping on raising income tax led to fury among many of her own MPs, who felt the chaotic handling of the run-up to the Budget damaged the party’s credibility.

She is now preparing to scrap the two-child benefit cap, extending an olive branch to MPs on the Left of the party.

Ms Rayner is popular among Labour’s membership, as well as with MPs on the Left and soft Left of Labour.

On Monday, Shabana Mahmood, the Home Secretary, will announce new policies on asylum seekers, in an attempt to see off the threat of Reform UK.

Fresh polling has shown that satisfaction ratings for Sir Keir continue to be the worst recorded for any prime minister going back to 1977.

Satisfaction with Ms Reeves as Chancellor has also reached the lowest level of any chancellor going back to 1976.

The figures, from Ipsos Mori and shared with The Telegraph, show that Reform maintains a clear lead as the nation’s most popular party – on track to take 33 per cent of the popular vote.

Labour’s vote share languishes at 18 per cent – the lowest since the expenses scandal and economic crisis of 2008-2009.

Some eight in 10 people think the country is getting worse as a place to live, showing no improvement from the 76 per cent who felt the same in 2023.

Labour has also lost its lead on a range of key policies from before the election, including on tax and the economy, the cost of living, healthcare and immigration. Reform is most preferred on asylum and immigration, the polling firm found.

A source close to Ms Rayner said: “This is total rubbish and obviously false. Amidst all the stirring and silly games, Angela is focused on representing her local community and ensuring that the priorities she championed in Government are delivered in full.”

Downing Street declined to comment.

[Source: Daily Telegraph]