LONDON, Jan 14(Agencies) – Tulip Siddiq has resigned as a Treasury minister after acknowledging that the controversy surrounding her close ties to her aunt, the ousted prime minister of Bangladesh accused of corruption, was harming the government.
Siddiq, who served as the City and anti-corruption minister, stepped down following an investigation by Laurie Magnus, the adviser on ministerial standards, into her use of properties given to her and her family by allies of Sheikh Hasina’s regime.
Magnus found no evidence that Siddiq had broken any rules or that her assets were derived from illegitimate means. The inquiry also examined her presence at the signing of a 2013 nuclear deal between her aunt and Vladimir Putin in Moscow, which she explained was purely social and as a tourist.
However, Magnus noted that a lack of records and the passage of time prevented him from obtaining comprehensive clarity on all UK property-related matters mentioned in the media. He suggested that Siddiq could have been more aware of the reputational risks arising from her family’s ties to Bangladesh.
After Magnus submitted his conclusions, Siddiq resigned on Tuesday, stating that she had fully declared all her financial interests and relationships but recognized that the situation had become a distraction for the government.
This marks the second resignation of a senior woman from Starmer’s government over an ethics issue, following Louise Haigh’s resignation as transport secretary last year over a fraud conviction.
Siddiq is also under investigation by Bangladeshi authorities for alleged corruption linked to her aunt’s collapsed regime, which she “totally refutes.”
In her resignation letter to Starmer, Siddiq expressed her commitment to the Labour government and its program of national renewal and transformation. She thanked Starmer for the privilege of serving in his government and pledged to continue supporting it from the backbenches.
Starmer accepted her resignation “with sadness” and hinted at a potential ministerial comeback, stating that the “door remains open for you going forward.” He emphasized that Magnus had found no breach of the code or evidence of financial improprieties.
Siddiq will be replaced as City minister by Emma Reynolds, a Department for Work and Pensions minister who previously worked for TheCityUK, the financial services industry group. Torsten Bell, a new MP and former chief executive of the Resolution Foundation, will take Reynolds’s position as pensions minister.
Siddiq had earlier referred herself to Starmer’s adviser on ministerial standards after it emerged that she had lived in properties associated with individuals linked to her aunt. These properties included a two-bedroom flat near King’s Cross and a Hampstead flat given to her sister.
Allies of the government defended Siddiq’s resignation, while the Conservatives and Liberal Democrats criticized her and the government. Conservative leader Kemi Badenoch called Siddiq’s position “completely untenable,” and Liberal Democrat MP Sarah Olney stated that it was right for Siddiq to resign, emphasizing the need for higher standards in government.
