Rayner open to Cabinet return

Angela Rayner has not ruled out a return to the Cabinet, according to allies.

Sources close to the former Deputy Prime Minister said she will give No 10 “a hearing” if they offer her a job in the Cabinet following the resignation of Wes Streeting as Health Secretary earlier today. However, they confirmed that no approach had yet been made by Downing Street.

Rayner’s allies claim that if she were to return, she would like to become Education Secretary – a brief she shadowed in Opposition and “enjoyed enormously.” This would mean moving Bridget Phillipson, the current Education Secretary, to another post within Cabinet, with some tipping her to become the new Health Secretary.

Shorts

There has been widespread speculation that the PM could bring Rayner back to serve in his top team after she was forced to resign over her tax affairs last summer.

However, that option has now become more viable after she was cleared of tax avoidance by HMRC. The Labour MP stepped down as Deputy Prime Minister and Housing Secretary last September when the independent ethics advisor found she had broken the ministerial code after admitting that she had underpaid stamp duty on an £800,000 flat in Hove, which was considered to be her second home.

On Thursday Rayner announced an HMRC investigation had cleared her of any wrongdoing after concluding she had not sought to avoid paying the correct stamp duty on the purchase of the property in 2025.

Back in December, Starmer said the “hugely talented” Rayner would make a return to Cabinet. However, by bringing her back into the tent now, it could help to shore up his support – even temporarily – among the party’s soft-left MPs, many of whom are believed to be supporting his leadership rival Andy Burnham.

One ally said: “I think she would go back in [to Cabinet] and will keep her powder dry for now. However, I think the price she will ask for sitting in Cabinet again will be an agreement that Burnham will be able to return to Westminster.”

Burnham announced on Thursday afternoon that he will be requesting approval from Labour’s ruling body, the National Executive Committee (NEC), to stand in a by-election in a bid to return to Westminster. The by-election was triggered after Josh Simons stepped down as Labour MP for Makerfield to allow Burnham to run for Parliament.

Another Rayner supporter cautioned that she may turn down the job if offered. They said that she still felt “very bitter” about the way she was treated by Starmer and his former chief of Staff Morgan McSweeney prior to her resignation. “She was very upfront with them about her tax affairs,” they claimed.

Another Labour source also said they would expect Starmer to offer a Cabinet job to Rayner as a way of bringing her back into Government – but questioned how likely it would be that she would accept given it would require loyalty to the PM.

“It is a huge call for her, whether to take it or not”, one insider said. If Rayner were to reject the offer the next obvious choice for Starmer would be Lucy Powell, who replaced Rayner as Deputy Leader of the Labour Party when she was forced to resign, a Government source said. They suggested Starmer did not have enough authority to begin a full-blown reshuffle of his Cabinet.

Rayner has long been seen as one of Starmer’s potential leadership rivals. However, her supporters have repeatedly said that she would not move against him and would likely only enter the race if Streeting triggered a contest.

Behind the scenes, the soft-left have been privately war-gaming what would happen in the event a leadership contest was held before Burnham, the Mayor of Greater Manchester, was able to return to Westminster. It is understood that a decision was made to coalesce around one candidate in order not to split the vote, but no formal agreement had been made on whether that candidate would be Rayner, or Ed Miliband, the Energy Secretary.

A source close to Rayner said: “Nothing was locked in because there were just too many variables to consider.”

There is no guarantee the NEC will allow Burnham to stand, although The BBC reported that Starmer will not try to block him, or that he would win the by-election. Simons currently sits on a majority of just over 5,000 with MPs supportive of the Prime Minister, who have constituencies in the surrounding area pointing out that Reform UK won every council seat available in the area in last week’s local elections.

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