Angela Rayner has been cleared by HMRC over her tax affairs, leaving the way clear for a potential Labour leadership bid as she says she has made no deal with Andy Burnham.

The former deputy Labour leader said she has settled the £40,000 she owed in unpaid stamp duty

It comes as Wes Streeting prepares to launch his own bid for leadership today. 

Ms Rayner has she wants to ‘play my part’ in a potential future contest, indicating that she may put herself forward for the top job. 

She told The Guardian: ‘I’ll play my part in doing everything we possibly can to deliver the change, because it’s not a personal ambition, I know the difference it makes,’ she said when asked.

‘Whatever role I can play, I will keep pushing and pushing hard because I want the people out there at the moment who are really struggling… to know that I’m putting all my energy into fighting for them.’

However the MP, seen to be a favourite of the Left of the Labour Party, suggested she would not fire the starting pistol on a leadership race herself. 

Ms Rayner said: ‘I’ve said to Keir this is a really significant moment for our party and the country … The pace of change hasn’t been enough for voters to see, and also mistakes have really blown us off course and made voters doubt us.’

Angela Rayner said she has not made a deal with Manchester mayor Andy Burnham 

Andy Burnham is expected to signal his own ambition to succeed Sir Keir today

In an interview with ITV the former deputy Labour leader said ‘people felt that I was tax dodging’ but ‘HMRC have concluded that there wasn’t any wrongdoing on my behalf’. 

‘We’re not delivering the change that people voted for and I feel like we’ve made some mistakes that need to be corrected’. 

When asked whether she had struck a deal with Manchester mayor and leadership hopeful Andy Burnham, she said: ‘No, I’ve said I would not trigger [a coup against] the Prime Minister.’ 

It comes as Health Secretary Wes Streeting is expected to plunge Labour into civil war today by quitting the Cabinet to mount a leadership challenge against Sir Keir Starmer if he has the backing of the 81 Labour MPs required for him to trigger a contest. 

He is ready to launch a bid this morning following yesterday’s face-to-face showdown with the Prime Minister which lasted just 16 minutes.  

His plans triggered panic in Downing Street and fury on the Labour Left, where MPs are even considering Ed Miliband as they scramble to unite behind a candidate of their own.

Sir Keir was reduced to pleading with his MPs to step back from the brink of a leadership contest, which he warned would cause ‘chaos’ and ‘paralyse’ the Government for months.

During a series of private meetings in the Commons, he told them: ‘We can’t let a leadership contest plunge us into chaos and a challenge would 100 per cent do that.’

Health Secretary Wes Streeting is expected to plunge Labour into civil war today by quitting the Cabinet to mount a leadership challenge against Sir Keir Starmer

Allies of the PM insist he will stand and fight for his job in what is likely to become a three or even four-way contest for the keys to No10.

Greater Manchester mayor Andy Burnham is expected to signal his own ambition to succeed Sir Keir today. But it remains unclear whether he can find a route back to Parliament in time.

One union leader accused Mr Streeting of attempting a ‘coup’ by launching a leadership bid before Mr Burnham is able to stand.

MPs on the Left of the party were last night debating whether to back Angela Rayner or Mr Miliband if Mr Burnham is locked out of the race. 

It has also been reported that Energy Secretary Ed Miliband could launch his own bid.