Summary

  • Chancellor Rachel Reeves says in an exclusive interview on BBC Breakfast that any Labour leadership contest would "plunge the country into chaos"

  • It comes as Angela Rayner, seen as a potential challenger to PM Keir Starmer, says she has been cleared by HMRC of wrongdoing over her tax affairs

  • The former deputy prime minister says she had been "exonerated" of the accusation she had "deliberately sought to avoid tax" - more on that here

  • On Wednesday, allies of Health Secretary Wes Streeting said they expected him to launch a challenge as soon as today

  • Starmer is battling to save his job after four ministers quit and dozens of Labour MPs urged him to resign after last week's heavy election losses

  • Any leadership challengers would need the support of 81 MPs to trigger a contest under Labour Party rules - how this process works

  1. Andy Burnham has pulled out of regular BBC slot on Thursdaypublished at 08:49 BST

    Joshua Nevett
    Political reporter

    Andy Burnham has a regular phone-in radio slot on BBC Radio Manchester and he was due to appear on presenter Mike Sweeney's programme on Thursday morning.

    But we learned last night that Burnham has pulled out, as speculation mounts over a potential challenge to Prime Minister Keir Starmer's leadership.

    A spokesperson for Burnham told the BBC: “As you know, Andy doesn’t like to miss the Hotseat.

    “But this week, to get the best deal for Greater Manchester, he has to prioritise discussions arising from last week’s local elections.”

    The election results in Greater Manchester were dire for Burnham’s party, as they were across the country, as Reform UK and the Green Party made major gains.

    Andy Burnham pictured in March, he is wearing a blue jacket and square glassesImage source, EPA
  2. West Yorkshire Mayor says she had 'frank conversation' with Starmer after election lossespublished at 08:39 BST

    The Labour Mayor of West Yorkshire says she had a "frank conversation" with Keir Starmer in Downing Street on Wednesday ahead of the King's Speech.

    Tracy Brabin tells Radio 4's Today programme Labour "just are not moving fast enough" and that she told the prime minister the party has "to escalate the pace of change".

    Brabin describes how the election results in Yorkshire were "catastrophic for the Labour Party" and adds that she "expects to see change" if Starmer is to remain as prime minister.

    Pressed on whether she wants Starmer to remain as Labour leader, Brabin says that there is currently not a leadership contest and that she has "no horse in this race".

    The mayor, who was previously a minister in Starmer's shadow cabinet when she was an MP, adds that Labour "need to make sure the next two years are different".

    Tracy Brabin pictured on Downing Street on Wednesday, she is wearing a purple suitImage source, PA Media
    Image caption,

    Tracy Brabin pictured on Downing Street on Wednesday

  3. 'People might never forgive us': Labour minister warns against leadership challengepublished at 08:27 BST

    Murray speaks to BBC in front of a green screen showing parliament

    The UK public "might never forgive" the Labour Party if they were to hold a leadership contest now, says Treasury minister James Murray.

    Asked on BBC Breakfast if triggering a leadership challenge would be irresponsible, he says: "I think it runs the risk that people might never forgive us if we turn inwards on ourselves."

    He stresses "the importance of not putting stability that we brought to the economy at risk" and warns of a contest bringing "huge instablity".

    Pressed further on the prospect of a leadership campaign, he says: "I don't think any of my colleagues should run a campaign, I don't think any of my colleagues should trigger leadership election."

    He says those in his party in favour of a leadership change "should all take a deep breath and a step back".

  4. Rayner says Starmer will 'have to reflect' on whether or not to stand downpublished at 08:12 BST

    Angela Rayner, wearing sunglasses, steps out of a black carImage source, Aaron Chown/PA Wire

    Alongside her announcement about her tax affairs this morning, Angela Rayner has spoken to the Guardian and ITV News, as questions continue to swirl over a possible Labour leadership challenge.

    Asked if she believes the prime minister should resign, she tells the Guardian: “Keir will have to reflect on that.”

    Rayner tells the paper the "pace of change hasn’t been enough for voters to see", and that "mistakes have really blown us off course and made voters doubt us.”

    When asked about whether she would run in any leadership election, she says "I’ll play my part in doing everything we possibly can to deliver the change," and will "keep pushing and pushing hard" in "whatever role" she plays.

    She echoes this in an interview in ITV News: "I want to deliver as part of the team and, I've always said that it is a team effort."

    When pressed further on whether she does want to become prime minister, she does not explicitly say no. Instead, she says: "I want us to pull together".

    Rayner also denies making any deals with Greater Manchester Mayor Andy Burnham for a potential Labour leadership race: "I'm not doing deals or anything like that," she says.

  5. Analysis

    Rayner's intervention threatens to distract from Streeting's movespublished at 08:01 BST

    Joe Pike
    Political correspondent

    Angela Rayner‘s intervention today has been both carefully choreographed and carefully calibrated.

    The main message she seems to want to get across is that she’s back in the fray, because HMRC has cleared her of deliberate wrongdoing or carelessness over her tax affairs.

    In recent days the ongoing uncertainty over her finances has led some natural pro-Rayner MPs on the ‘soft left’ of Labour to look elsewhere and seek out alternative potential successors to Keir Starmer.

    The timing of her Guardian and ITV interviews - just as many allies of Wes Streeting expect him to mount a leadership challenge - reasserts her position and threatens to distract from the health secretary’s big move.

    Secondly Angela Rayner confirms she is “not doing deals” and has not committed to support Andy Burnham. It remains unclear whether the Greater Manchester mayor even has a route back to parliament.

    But thirdly, and perhaps most importantly, Rayner says “I would not trigger the prime minister”. She therefore would not directly challenge Starmer by finding 81 MPs to back her, but she could run in an eventual contest to become Labour leader and prime minister.

    Angela Rayner’s intervention suggests there may be a rather full field of candidates if a leadership campaign does begin.

    Yet with Labour MPs split on both whether the prime minister should be replaced, and by whom, that contest is not yet inevitable.

    Angela Rayner pictured in FebruaryImage source, EPA
  6. Reeves sends a very stark messagepublished at 07:37 BST

    Henry Zeffman
    Chief political correspondent reporting from Downing Street

    I just exclusively interviewed the Chancellor, Rachel Reeves, in Downing Street for BBC Breakfast.

    It’s the first time she has spoken about the prospect of a Labour leadership election.

    She said it would “plunge the country into chaos”.

    That’s a very, very stark message - and a preview of what we can expect to hear from other Starmer loyalists if Wes Streeting challenges him today.

    But there is particular resonance to the chancellor saying it, given so many Labour MPs of all wings of the party believe this government cannot win re-election, whoever is PM, without an improved economy.

    Media caption,

    Reeves pressed on Labour leadership

  7. Reeves says Labour should not hold leadership contest as economy 'starting to bear fruit'published at 07:35 BST

    Chancellor Rachel Reeves says Labour should not plunge the country into chaos by holding a leadership contest "at a time when there is conflict in the world and also at a time when our plan to grow the economy is starting to bear fruit".

    Reeves was asked by the BBC about a possible leadership contest and her message for Health Secretary Wes Streeting, who is widely expected to challenge Keir Starmer.

    She adds that Labour MPs have "an important decision to make today" as she said the economy is growing strongly because of decisions she has made as Chancellor.

    "We shouldn't put that at risk," adds Reeves.

    It comes after the latest GDP figures show that the economy grew by 0.6% in the first quarter of 2026. Read more on today's figures here.

    Rachel Reeves speaking to BBC Breakfast
  8. How speculation over PM leadership challenge unfoldedpublished at 07:27 BST

    Keir Starmer pictured in the rain on WednesdayImage source, PA Media
    Image caption,

    Keir Starmer on his way to the State Opening of Parliament on Wednesday

    Amid the pageantry of the State Opening of Parliament, Wednesday was dominated by talk of a Labour leadership challenge.

    The day began with Wes Streeting walking up Downing Street for a meeting in No 10. Less than 20 minutes later, he was walking out the front door again.

    Later in the morning - and with the usual pomp and ceremony of a State Opening - the King outlined the government's legislative agenda, announcing bills focused on strengthening ties with the EU and increasing defence spending among other things.

    But by lunchtime supporters of Streeting had told the BBC they expect he will challenge Starmer for the Labour leadership as soon as Thursday.

    Later in the day, the prime minister met ministers and Labour MPs in Parliament as he warned them any potential leadership contest would "plunge" the party into "chaos".

  9. Remind me - what was the row over Rayner's tax affairs?published at 07:24 BST

    Angela Rayner says she has been "cleared" by HMRC over a row surrounding her tax affairs - what happened?

    Rayner stood down as deputy prime minister and Labour's deputy leader in September 2025, after it was revealed that she underpaid stamp duty on her £800,000 flat in Hove.

    Due to complex arrangements surrounding a trust for her disabled son, the flat should have been considered to be Rayner's second home. This meant she owed an additional £40,000 in stamp duty.

    Following the scrutiny around her tax affairs, Rayner said last autumn she sought advice from a senior lawyer and admitted that she should have paid the higher rate on the home.

    She then referred herself to the prime minister's ethics adviser, who concluded that Rayner "acted with integrity" but had breached the ministerial code.

    The adviser also said she did get legal advice when buying the property, but failed to seek further expert tax advice as recommended.

  10. Angela Rayner says she has been 'cleared' by HMRC over tax affairspublished at 06:59 BST

    Angela Rayner pictured in front of green backgroundImage source, Getty Images

    Former Deputy Prime Minister Angela Rayner says she has been cleared by HMRC of wrongdoing over her tax affairs.

    She stood down in September 2025 after admitting she underpaid stamp duty on a flat in Hove.

    In a statement on Thursday morning, the MP for Ashton-under-Lyne says she "welcomes" the conclusions from HMRC "which has cleared me of any wrongdoing," and says she has been exonerated "of the accusation that I deliberately sought to avoid tax".

    She goes on: “When purchasing a home of my own with a mortgage, I did not own any other property and had no personal financial interest in the court-instructed trust set up to manage my son’s financial award. I was advised by experts that I should pay stamp duty at the standard rate.

    “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 adds that she "wanted to ensure that I paid every penny that I owed, and have done so".

  11. Analysis

    Big moment ahead for Streeting to decide whether to go for itpublished at 06:40 BST

    Chris Mason
    Political editor

    Keir Starmer argues a leadership debate will paralyse the government and cause chaos within the Labour Party. Can this argument shrink the potential support for Streeting or any other potential challengers?

    But the prime minister also knows that a significant number of his MPs now think he is a loser - and a major factor in the scale of Labour's defeats in elections in England, Scotland and Wales last week.

    For those wannabe challengers, the challenge is trying to set out a distinctive and attractive alternative Labour agenda, that can appeal to MPs and party members - and convince them they would be more popular than Keir Starmer.

    There is a big moment coming in the next 24 hours: for Wes Streeting, deciding to go for it or not, and the tone and tenor of any launch that he is planning.

    For the prime minister, his back is against the wall.

    And for any others too, with designs on the top job.

    You can read more of Chris' analysis here.

    Keir StarmerImage source, PA Media
  12. Starmer could see leadership challenge as early as today, after warning of 'chaos'published at 06:24 BST

    Prime Minister Keir Starmer has warned his party that a Labour leadership contest could result in "chaos", as speculation that Health Secretary Wes Streeting is plotting a run for the leadership.

    Allies of Streeting have told the BBC that they expected him to challenge Starmer as early as today.

    He would need the backing of 81 Labour MPs to trigger a contest under the party rules.

    It comes after four ministers quit and dozens of Labour MPs urged Starmer to quit after last week's heavy losses in elections across English councils, the Welsh Senedd and Scottish Parliament.

    We’ll be providing live updates as today unfolds, with plenty of analysis and reaction to come.

    Streeting and Starmer pictured in September 2024, they are both wearing shirts with the sleeves rolled up and holding cups of coffeeImage source, PA Media
    Image caption,

    Streeting and Starmer, pictured in September 2024