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 - more on that here

  • HMRC regards the row over the former deputy leader's stamp duty as closed and she will not face a penalty after paying £40,000 she owed

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

  • Streeting's supporters say he has the numbers but such is the volatility around the PM, and what they claim he might do next, they are waiting for now, reports Chris Mason

  • Starmer's spokesperson repeats that he has confidence in his health secretary, and that his "position hasn't changed" on pledging to fight any leadership challenge

  • The PM 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 - the latest numbers and how a contest is triggered

  1. Starmer retains confidence in Streeting, says spokesmanpublished at 11:59 BST
    Breaking

    Downing Street says Prime Minister Keir Starmer maintains confidence in Health Secretary Wes Streeting, and that his “position hasn’t changed” since Wednesday.

    Asked whether Streeting remained in his cabinet post, Starmer’s official spokesman says: “Yes.”

    Questioned on whether the PM had full confidence in him, the spokesperson says: “Yes, the position hasn’t changed.”

  2. There are still dozens of MPs who haven't expressed a viewpublished at 11:37 BST

    Iain Watson
    Political correspondent

    Around 160 Labour MPs haven’t publicly declared a view on a leadership contest.

    Some who have said nothing publicly would like to see a balanced ticket - Streeting and a big beast from the soft left such as Rayner or preferably Burnham (if he gets a seat) as prime minister/deputy prime minister.

    This could in turn convince Starmer to go without a contest, and avoid the charge of chaos.

    The big caveat is I have no evidence that such discussions are taking place where they matter - among the potential candidates.

    Some on the party’s soft left have been accusing Streeting supporters of telling MPs if they nominate him to get the ball rolling on a contest they can subsequently shift allegiance.

    But the party’s rules would mean they couldn’t then nominate a different candidate.

    So lots of activity but no resolution in SW1. And for the avoidance of doubt - we have no idea at this stage how the day will play out.

    Keir Starmer pictured on WednesdayImage source, PA Media
  3. Away from the cameras, there's a lot going onpublished at 11:24 BST

    Iain Watson
    Political correspondent

    Cameras pointing toward to door of 10 DOwning StImage source, EPA

    If you are watching TV this morning you won’t see much activity in Downing Street - apart from a profusion of TV crews.

    But away from the cameras there is a lot going on in Westminster.

    Keir Starmer is in his Commons office, not No 10.

    The calculation in his camp currently is that Wes Streeting hasn’t reached the crucial number of 81 supporters that would trigger a leadership contest.

    Streeting supporters disagree.

    This morning, the PM’s backers are contacting those that they think might be tempted by a Streeting candidacy.

    The message is that a contest would plunge the party and country in to chaos - though I’d be surprised if there wasn’t also some less high minded horse trading.

    There are reports that some MPs have had multiple calls from the Streeting camp to get his nomination over the line - though one MP on the party’s right seemed quite offended that they hadn’t been contacted at all.

  4. Nearly 90 Labour MPs have called for Starmer to gopublished at 11:14 BST

    Keir Starmer has spent the week fighting to save his premiership after four ministers quit and dozens of Labour MPs urged him to resign after last week's heavy election losses.

    As a reminder, nearly 90 Labour MPs have said the PM should go or called for him to set out a timetable for his departure.

    Over 150 MPs have indicated support for the PM or said it's not the right time for a leadership contest.

  5. Supporters of Streeting say he has backing but they are waiting for nowpublished at 11:01 BST

    Chris Mason
    Political editor

    Things are now moving at lightning pace now - even though no one has declared yet.

    Supporters of Wes Streeting say he has the numbers but such is the volatility around the prime minister, and what they claim he might do next, they are waiting for now.

    Others are spitting about Andy Burnham, saying the mayor of Greater Manchester has made a huge fuss about his ambitions but still hasn’t found a seat.

    A senior figure just said to me that ‘MPs are all losing their minds’ and what is happening is a ‘total mess.’

    Their language was actually considerably punchier than that, but you get the gist.

  6. HMRC regards Rayner stamp duty tax row as closed, email showspublished at 10:45 BST
    Breaking

    Chris Mason
    Political editor

    I have been shown an email from HMRC to Angela Rayner’s lawyers that verifies that the tax authority regards the row over her stamp duty as closed.

    HMRC also spell out in the email that Rayner will not face a penalty charge.

    Angela Rayner, pictured in July 2025Image source, EPA
    Image caption,

    Rayner, pictured in July 2025

  7. BBC Verify

    How HMRC classifies people who have paid wrong amount of taxpublished at 10:42 BST

    By Anthony Reuben

    In her statement, former deputy prime minister Angela Rayner says she “welcomes HMRC’s conclusion, which has cleared me of any wrongdoing”, following an investigation into the amount of stamp duty she paid when buying a flat in Hove.

    Rayner says she has now “paid every penny that I owed” and been “exonerated by HMRC of the accusation that I deliberately sought to avoid tax”. She adds that HMRC has accepted she took “reasonable care and acted in good faith, based on the expert advice I received”.

    “Cleared of wrongdoing” is not the sort of language that HMRC uses on its website. It has four levels of classification for people who have not paid the right amount of tax., external

    Rayner's statement would seem to indicate her case has been deemed to be in the bottom category, which means the tax authorities have concluded that she took “reasonable care” and should not pay a penalty.

    The three categories which would lead to penalties are for those who are careless, those who deliberately pay the wrong amount and those who deliberately pay the wrong amount and then attempt to conceal it.

  8. Good news for Streeting as NHS hits interim target for planned treatmentpublished at 10:20 BST

    Hugh Pym
    Health editor

    Away from the political headlines, this morning we have had an update on some NHS figures - which come under Wes Streeting's brief as health secretary.

    The government has hit an interim target for speeding up planned NHS treatment in England. The target was 65% of patients being treated within 18 weeks in March 2026.

    The figure for that month out today showed 65.3% were treated in that time.

    The main target is 92% by the end of this parliament. In March the overall waiting list in England fell from 7.2 million to 7.1 million, the lowest for three and a half years.

    This looks like just the news Wes Streeting was hoping for on a day of intense speculation about a leadership bid.

    There's still a long way to go to hit the 92% target by the time of the next election. But getting to the interim number on schedule will be seen by his supporters as proof of his record in trying to turn round the NHS.

  9. A busy morning in UK politics - what's the latest?published at 09:47 BST

    Wes Streeting, UK shadow health secretary, left, and Angela Rayner, deputy leader of the Labour Party, during the launch of the party's general election manifesto in Manchester, UK, on Thursday, June 13, 2024.Image source, Getty Images

    There are a lot of political headlines to digest already this morning.

    Here's the latest if you're just joining us:

    This morning - amid speculation that Health Secretary Wes Streeting is preparing to launch a leadership challenge to Keir Starmer - former deputy prime minister Angela Rayner came out saying she has been "cleared" by HMRC after she initially failed to pay the correct stamp duty on a flat in Hove.

    Rayner is on the left of the Labour Party and has called for Andy Burnham's return to Parliament.

    Burnham, meanwhile, has pulled out of a regular appearance with the BBC today, citing the need for discussions around last week's elections results.

    She has dropped a "news bomb" at the earliest possible moment, writes our political correspondent Joe Pike, while Chris Mason says that the political "jostling" is evident everywhere.

    Starmer and his allies have repeatedly warned Labour MPs and ministers that any leadership challenge would plunge the UK into "chaos".

    In an exclusive interview with the BBC, Chancellor Rachel Reeves warned against any leadership contest "when there is conflict in the world" and Labour's plan to grow the economy "is starting to bear fruit".

  10. Analysis

    Rayner drops 'news bomb' at earliest possible momentpublished at 09:26 BST

    Joe Pike
    Political correspondent

    Angela Rayner in a green jacketImage source, Reuters

    Allies of Angela Rayner have confirmed that HMRC notified her of its conclusions on Tuesday.

    That timing could arguably not have been better for the former deputy prime minister - at the very moment a possible leadership contest loomed.

    The danger of overshadowing the King’s Speech meant all of Wednesday seemed to be off-limits for any major interventions on Labour’s future.

    Angela Rayner’s team therefore dropped their news bomb as soon as possible on Thursday: at 6am just as Westminster was waking.

    While she has committed to not directly challenging the prime minister, her Guardian interview was lukewarm about his future in No 10.

    Asked whether the PM should step aside, Rayner replied: “Keir will have to reflect on that”.

    As a politician who came up through the union movement, Angela Rayner will be well aware that all eleven of Labour’s affiliated trades unions have said they believe Keir Starmer will not lead the party into the next general election. But could she?

  11. Potential leadership challengers jostle for positions as PM's allies warn of 'chaos'published at 09:15 BST

    Chris Mason
    Political editor

    Prime Minister Keir Starmer leaves 10 Downing Street to attend Prime Minister's Questions, on July 9, 2025Image source, Getty Images

    What we are witnessing this morning is the jostling on the expected start line of a race to be our next prime minister.

    The jostling is evident everywhere.

    From the prime minister's supporters, not least the Chancellor Rachel Reeves, telling BBC Breakfast that a contest would be "plunging the country into chaos at a time when there is conflict in the world, but also at a time when our plan to grow the economy is starting to bear fruit".

    Then there are friends and allies of the Health Secretary Wes Streeting who expect his challenge to Keir Starmer to now be imminent, but with his rivals briefing that he has struggled to get the numbers of backers he requires.

    Then the interviews the former Deputy Prime Minister Angela Rayner has done.

    She is saying she has resolved the tax issue that cost her her job in government and she is now ready to "play my part" in the forthcoming anticipated debates about the Labour leadership.

    Then there is Andy Burnham, the mayor of Greater Manchester, currently marooned outside Parliament and so unable to take part in any immediate leadership race unless he can demonstrate he can get a move on, find a seat, persuade the party to let him stand, and hope that the timeframe of any contest means he can play a part in it.

    His weekly phone-in slot with Mike Sweeney on BBC Radio Manchester isn't going ahead this morning, which is rare.

  12. How would a leadership contest work?published at 09:07 BST

    Speculation over a potential challenge to Keir Starmer's leadership continues to mount.

    Wes Streeting's allies say he could try to launch a contest as early as today, while questions also remain over whether mayor of Greater Manchester Andy Burnham or ex-deputy leader Angela Rayner would stand.

    But how would a leadership challenge work?

    It is possible for Labour MPs unhappy with Starmer to trigger a leadership challenge.

    But only if 81 of them - 20% of the Parliamentary Labour Party - agree to back a candidate.

    That would trigger a contest, which other candidates could then join so long as they also receive 81 backers.

    If Starmer remains as leader and a contest is triggered, he would automatically be on the ballot.

    Here's how a leadership election would work in such a scenario:

    A BBC graphic showing how a leadership challenge would work with a party leader - each candidate would need 20% of Labour MPs, except the current leader who is automatically on the ballot. Labour Party members and affiliate members then vote via a postal ballot with candidates ranked in order of preference. To win, a candidate needs 50%. Lower scoring candidates are eliminated and their supporters’ other preferences are redistributed until one reaches 50%

    The other way a Labour leadership challenge can be triggered is if the leader - currently Starmer - resigns.

    If Starmer chooses to resign with immediate effect, a member of the cabinet would replace him in a caretaker capacity under Labour Party rules. He could also stay in post during a transition period before handing over to a successor.

    Starmer has given no indication that he intends to do that, and has said instead that he wants to stay in the role. Last week he suggested quitting would "plunge the country into chaos".

  13. Andy Burnham pulls out of regular BBC radio slotpublished 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 England, Scotland and Wales, 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
  14. 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 stay in his job, 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

  15. '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."

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

  16. 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."

  17. 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
  18. 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

  19. 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
  20. How speculation over PM leadership challenge unfoldedpublished at 07:27 BST

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

    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".