Rayner open to Cabinet return – but still feels ‘bitter’ over treatment from No 10

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 after she resolved her tax affairs. 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”. Wes Streeting resigned as health secretary this afternoon, but by this evening it was announced by No10, Chief Secretary to the Treasury James Murray would be his replacement – ruling out the possibility of Rayner landing that job. Shorts There has been widespread speculation that the Prime Minister could bring Rayner back to serve in his top team after she was forced to resign over her tax affairs last summer. An 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 adviser 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. Bringing her back into the tent now 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, the Mayor of Greater Manchester, 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 a 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 said they would expect Starmer to offer a Cabinet job to Rayner as a way of bringing her back into Government – but questioned how probable it would be that she would accept given it would require loyalty to the Prime Minister. “It would be a huge call for her,” one insider said. There has also been speculation that Lucy Powell, who replaced Rayner as Deputy Leader could also return to Cabinet. Although one Government source suggested Starmer did not have enough authority to carry out 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 probably only enter the race if Streeting triggered a contest. Behind the scenes, the soft left have been privately wargaming what would happen in the event a leadership contest was held before Burnham 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.