A former Labour adviser has hit back at rumours that Angela Rayner has built a £1million war chest to challenge Sir Keir Starmer for the party leadership, insisting the claims are “entirely without foundation”.

Luke Sullivan dismissed the reports outright, joking that if Mrs Rayner actually had that sort of money, she would have been off to sunnier climes in Ibiza rather than plotting against the Prime Minister.

Speaking after consulting with Mrs Rayner’s team, he insisted there was “absolutely no truth in this story whatsoever”.

He told GB News: “It’s always important to wait to hear what she says. I think often we get a lot of these “allies” stories knocking around. Angela is a very plainspoken northern woman, and she will give you her view.

“But as I understand it, from speaking to her team, there’s absolutely no truth in this story whatsoever.

“And frankly, I suspect if Angela had raised £1million, she would have decided to buy a villa in Ibiza and set up a nightclub. So I don’t believe there’s anything in this.

“What has happened, as I understand it from speaking to her team, is similar in the way to what former prime ministers and former deputy prime ministers have done.

“She set up a small office to organise her affairs. This doesn’t allow for her to do any of her commercial or private work, but it is about how, as a former deputy prime minister and I think the Prime Minister himself has said he would like Angela back in public life at some point she organises her affairs and supports her work in the country.”

The ex-advisor explained that Mrs Rayner’s newly established company, The Office of Angela Rayner Ltd, serves a straightforward administrative purpose rather than signalling any leadership ambitions.

The firm, incorporated on January 22 with Mrs Rayner and her former chief of staff Nick Parrott listed as directors, is intended to support her public activities following her Cabinet departure.

Despite Mr Sullivan’s denials, reports over the weekend painted a different picture of Mrs Rayner’s intentions.

According to allies quoted in the Mail on Sunday, the former deputy prime minister has received firm pledges exceeding £1million and stands ready to launch a leadership bid.

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“She has received more than a million in firm pledges and is ready to go,” one ally claimed.

Sources also suggested Mrs Rayner has begun offering Cabinet positions to potential supporters among Labour MPs, giving them incentive to back her candidacy.

Left-wing parliamentarians have allegedly been promised roles in a future Mrs Rayner government, with Dr Rosena Allin-Khan reportedly mentioned as a potential Health Secretary.

The manoeuvring comes amid growing speculation that Sir Keir could face a challenge following May’s local elections, particularly if Labour suffers significant losses.

Presenter Dawn Neesom observed that the Prime Minister finds himself in a vulnerable position, with recent polling showing him to be the most unpopular leader in British history.

“He is weak at the moment. He is wounded,” she stated, noting that despite Mr Starmer’s belief he performed well during his China visit, few others shared that assessment.

Dawn revealed she had spoken with the former head of MI6, who suggested the Prime Minister should not have made the trip at all.

With Mr Starmer’s approval rating plunging to minus 57, the lowest personal rating any prime minister has recorded, Dawn argued this creates opportunities for rivals such as Mrs Rayner or Health Secretary Wes Streeting to mount a challenge.

Mr Sullivan conceded that the Prime Minister’s polling figures are undeniably weak, but placed this within a broader context of political disenchantment.

“I think he follows, in great tradition, the last five or six prime ministers, who were less popular than the ones before them.

“We are in an age where politicians are just frankly unpopular. The public are very fed up with politics

A spokesman for Angela Rayner maintained that her new company was established “in line with precedent and with approval from the relevant authorities” to provide staff support for her public activities, dismissing speculation as “ill-informed gossip or idle speculation.”