ANGELA RAYNER will return to the Cabinet, the Prime Minister says.

Replying to a question put by the Observer as to whether she would return, Sir Keir Starmer said “Yes. She’s hugely talented.”

No timescale or post was specified, however.

The PM’s olive branch to his former deputy, who was forced to resign over her failure to pay the correct amount of tax on one of her houses, follows speculation that she could be part of a challenge to his leadership.

Last week, the Daily Telegraph reported that Health Secretary Wes Streeting — who was briefed against by No 10 as likely to make a bid for the leadership in a Downing Street own goal last month — was approaching Ms Rayner for her support in a dual ticket, promising her high office and a return to the deputy premiership.

A source close to Ms Rayner said on that rumour “there is no vacancy [for the premiership] and there is no pact.”